In a post-pandemic world where audiences demand premium theatrical experiences, Imax is betting big on the Asian market, with China’s animation boom leading the charge. “Ne Zha 2” has shattered box office records, grossing over RMB14.8 billion ($2.06 billion) in mainland China, according to Maoyan Entertainment data.
The animated sequel has been particularly strong for Imax, which saw approximately 55% of its screenings in the 3D format. “It had just all these elements of a good movie,” Imax CEO Rich Gelfond told Variety. “It was humorous. There was a lot of action in it. It looked really good. It was also based on an ancient Chinese story, which a lot of Chinese children are aware of.”
The animated feature’s success in Imax theaters stems from technical excellence that showcases the premium format’s strengths. “The animation is very high-quality. And whether it’s 2D or 3D, I think the brightness in Imax as well as the size of the theater and the quality of the sound, they make it just a much better movie,” Gelfond explained. “I would say an analog would be ‘Avatar,’ where a lot of it’s in 3D. It’s very carefully rendered animation.”
Multiple viewings have been a significant driver of the film’s box office performance. “It’s the kind of movie that you could really see multiple times and enjoy it multiple times,” says Gelfond. “That’s been a big element of our box office.”
Imax’s strategic approach to Chinese New Year films included joint-marketing ventures with studios and heavy investment in social media, particularly TikTok. “We pooled some of our marketing efforts and leaned into the movies in a greater way together than either us could have done alone,” said Gelfond.
According to Lai Li, market analyst at box office tracker Maoyan Entertainment, the success of “Ne Zha 2” follows a period of relative industry stagnation. “The Chinese film market was a little lackluster last year, mainly because we were missing those big, tentpole movies. Only three films managed to break the RMB3 billion ($415 million) barrier,” she noted. “However, the strong performance of this year’s Chinese New Year film season has set an encouraging tone for the film market in 2025.”
The record-breaking performance of “Ne Zha 2” aligns with broader industry trend toward franchise development. “Sequels and franchise films are a cornerstone of the film market, not just in China, but worldwide,” said Li. “If you look at the top 10 highest-grossing films in Chinese history, only two of them aren’t sequels or part of a series.”
In China, there are seven “Filmed for Imax” blockbusters currently in production by Chinese studios, with at least three scheduled for release in 2025. Alibaba, Maoyan and Wanda all have multiple big-budget blockbusters in production, including this year’s highly anticipated action-adventure sequel “A Writer’s Odyssey 2.” Looking ahead, Hollywood titles expected to perform well in China include “Avatar: Fire and Ash,” “How to Train Your Dragon,” “Zootopia 2” and “Jurassic World.”
“I think the IP along with the local taste really will combine this year. So I think the Hollywood slate will also perform better as well as the backlog of strong Chinese movies,” Gelfond said.
Both Gelfond and Li s noted shifting audience preferences in the last two years. “Since the pandemic, audiences are paying closer attention to the ‘time-effectiveness’ and ‘cinema-ness’ of their moviegoing experience,” said Li. “They’re considering what irreplaceable experiences they can get from seeing a film in a theater.”
This has benefited Imax significantly. “Our market share has gone up post-pandemic from where it was pre-pandemic,” Gelfond said. “I think consumers are kind of saying, ‘I spent a lot of time watching in my living room. When I go out, I want something special.’”
According to Maoyan’s data, comedies have become increasingly popular among Chinese audiences in recent years. “In 2021 and 2022, comedies snagged two of the top three spots at the box office. And in 2023, the year’s biggest hit, ‘Full River Red,’ was a suspenseful comedy,” Li said.
Imax continues to initiate technological advancements. “Recent innovations include a much more improved sound system, 12 channel, which is the best in the world,” said Gelfond. The company has also migrated to laser-based projection technology, which “creates brighter images” and “blacker blacks.”
On the production side, Imax recently released a new generation of film cameras that are “somewhat lighter, somewhat quieter” with “more flexibility for the filmmaker to use it and to get different kinds of shots,” according to Gelfond. The company has also developed technology that can “up res streaming” to deliver Imax-quality images for live content, successfully used for League of Legends esports events and NBA Finals broadcasts in China.
Japan represents another growth market for Imax, with Gelfond noting they’ve already signed deals for approximately 10 new theaters in the first quarter of 2025. “The best year we’ve ever had in Japan was 2012. So I think there is a good shot that this will be the best year in Japan,” he said. “Demon Slayer: Infinity Castle” — the sequel to Imax’s highest-grossing Japanese film of all time — is slated for release in Japan on July 18, further boosting prospects in the market. Japan had the highest per-screen averages in the world in 2023, making the economic model particularly attractive to cinema chains. The success of local-language films, particularly anime titles, has contributed to this growth.
Imax currently maintains 796 locations in China and another 185 throughout Asia, with a substantial backlog of 191 contracted locations in China alone waiting to be installed. Outside China, Japan leads with 52 open locations and 18 in backlog, followed by India (33 open, 9 backlog), South Korea (27 open, 3 backlog) and Indonesia (18 open, 2 backlog).
As the theatrical exhibition industry continues to recover from pandemic disruptions, premium formats like Imax are positioned to capture an increasing share of the market, particularly in Asia, where audience demand for spectacle and quality shows no signs of slowing down.
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