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The Chinese film market has enjoyed a 14-year-long boom since the restructuring of the Chinese film industry back in 2002. However, the bubble burst in 2016： the total box office stood at 45.712 billion yuan, a mere 3.73 percent increase over the previous year. The growth rate hits a 10-year low in 2016, and is expected to remain low in 2017.
The cooling of the domestic film market is not accidental. On the surface, it is because the construction of theaters and ticket subsidies decreased at the same time. But the fundamental reason is that the fast growth of Chinese film industry has long relied on external dividends, while the content production lags behind the development of channels, as a result, the market collapsed when external dividends drained out.
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