Xinhua Insight: China expected to surpass North America in box office in 2017

Optimism has been flowing in China's film market over the past few months.

After setting a record of 44 billion yuan (6.7 billion U.S. dollars) in 2015, China's cinemas made history once again this February.

With 6.87 billion yuan (1.05 billion U.S. dollars) in ticket sales, China's box office surpassed North America (810 million U.S. dollars) for the first time ever last month, according to the State Administration of Press, Publication, Radio, Film and Television.

The numbers have led to speculation that China's annual box office could go on to surpass North America as soon as 2017.

"The speculation makes sense, though we cannot draw conclusions based on a single month," said Shi Chuan, professor at Shanghai Theatre Academy (STA).

The growing positive outlook is backed by staggering figures. Box office sales grew by 48.7 percent in 2015 and 1.25 billion tickets were sold last year, a 51.1 percent increase from 2014.

According to Shi, China's box office sales could reach as high as 66 billion yuan in 2016 before overtaking North America's box office in 2017, which stood at 11 billion U.S. dollars (72 billion yuan) in 2015 with a 6.9 percent yearly increase.

"Last month's situation was just a 'preview' of a future where China's yearly box office tops the world," Liu Fan, researcher at Chinese National Academy of Arts.

Many attribute last month's success to the impact made by domestic films. In February, Chinese sci-fi comedy "The Mermaid" pulled in about 3.17 billion yuan after opening on Feb. 8, setting a new Chinese box office record.

The previous record was held by domestic film "Monster Hunt," which was released in July 2015 and raked in 2.44 billion yuan. Joined by the likes of "Goodbye, Mr. Loser" and "Mojin-The Lost Legend," China's domestic films reached the next level in 2015.

Last year, domestic films maintained clear dominance in China, taking in 27.1 billion yuan in ticket sales, or 61.58 percent of the country's total, despite fierce competition from Hollywood.

Backing the growing sales are swarms of people finding the joy of movie-going for the first time.

"The huge population of China brings considerable market potential," said Zhang Yiwu, a literature professor at Peking University.

He said Chinese people have just started to attach more importance to seeking entertainment. With more cinemas being built in smaller cities, he believes going to the cinema has become a more common way to spend leisure time in China.

"The biggest advantage for us is that our market is rooted in our middle class and youth," he said. "This allows us to nourish the domestic market before increasing our influence worldwide."

However, there is still a gap between China's film industry and Hollywood.

According to official data, over 1.3 billion tickets were sold in North America last year, meaning the average American watched four films at the cinema in 2015. The average was no more than 1.7 for China's urban citizens.

"The growth of the Chinese film market has been sprouting from a tiny base," Zhang said. "It will take time for it to mature."

Meanwhile, Liu Fan played down the sensation of China's February box office. "We celebrated the traditional Chinese New Year and Valentine's Day in February, while it was the low season for the box office in North America."

China must also improve the quality of its domestic films, he said.

"Our films have yet to make a breakthrough in terms of their technical competitiveness," said Shi Chuan, the STA professor.

"2016 and 2017 will be crucial if our film industry wants to blend into the international market," said Guo Xiaoxian, chairman of Beijing Times Films Company, Ltd. "We have to make more adjustments now." Endi