Disney, Warner Bros. Discovery Stocks Plunge 6.79%, 12.53% Amid China Film Import Cuts

On April 10, several major American movie companies experienced significant declines in their stock prices. The most notable drops were seen in Walt Disney and Warner Bros. Discovery, with their stock prices falling by 6.79% and 12.53% respectively. This downturn came in response to a statement made by the spokesperson of the Chinese National Film Bureau, who criticized the U.S. government's imposition of tariffs on China, asserting that such actions would further diminish domestic audiences' favorability towards American films. The bureau announced plans to reduce the import of American films in accordance with market principles and audience preferences, while continuing to promote high-level openness and importing films from various countries to meet market demands.

The impact of this decision was particularly evident in the performance of Disney and Warner Bros. Discovery. Disney's "Inside Out 2" was the highest-grossing film of 2024, earning approximately $17 billion globally, with $6.53 billion from the U.S. and $47.4 million from China. Warner Bros. Discovery's "Dune 2" ranked seventh in global box office earnings for 2024, with a total of $7.146 billion, of which $2.821 billion came from the U.S. and $49 million from China. These figures highlight the significant revenue contributions from the Chinese market for both companies.

Industry analysts noted that the diversification of film imports, with a broader range of sources and themes, is likely to shift audience attention away from Hollywood productions. The rise of domestic films, which have made significant strides in technology and storytelling, aligns well with local audience preferences, further strengthening the competitive edge of local productions. Over the past three years, domestic films have dominated the annual box office, with a significant portion of the total revenue coming from local productions. This trend underscores the growing influence and popularity of domestic cinema.

The success of domestic films is further exemplified by the global reception of "Ne Zha," a Chinese animated film that has garnered widespread acclaim both domestically and internationally. The film's global box office earnings, including pre-sales and overseas revenues, have surpassed $15.6 billion, placing it fifth in the global box office history. This achievement underscores the increasing global appeal of Chinese cinema and its potential to compete on the international stage.