As I delve into the captivating tale of Fan Chen, the powerhouse executive leading China’s film industry giant, Wanda, I find myself in awe of her relentless pursuit of success and innovation. With a career trajectory that rivals the most thrilling of blockbuster movies, Chen has proven herself to be a true visionary, navigating the ever-changing landscape of entertainment with grace and determination.
In 2010, Chinese actress Chen Zhixi appeared in a supporting role alongside Xu Zheng, a major comedy star in China, within the widely acclaimed period drama series titled Li Wei the Magistrate. This show was successful and marked a significant milestone for her, yet Chen found herself growing dissatisfied with her acting career and began contemplating alternative routes within the industry.
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In Zheng, she expressed her belief that he was an undiscovered comic genius with vast potential. Proposing a deal, she envisioned a time when he wouldn’t just act in his creations, but also direct them; and she, in turn, would be the producer for his work.
The partnership formed in the buddy comedy “Lost in Thailand,” which marked Zheng’s directorial debut and Chen’s first venture as a producer. This movie premiered in December 2012, raking in $208 million, a record for Chinese films at that time – one of the early significant box office successes. Chen would achieve similar milestones on her path to becoming a prominent film executive in China.
According to Chen, who resides in Beijing alongside her husband, a music producer-composer named Guo Sida, and their child, it’s noteworthy that only a handful of filmmakers started out as actors before transitioning into successful directors within the Chinese film industry. She takes great pride in discovering and nurturing such talent.
The director, who is known for launching successful directing careers, achieved remarkable feats with popular actors such as Deng Chao, Dong Chengpeng, and Chen Sicheng. In 2014, 2015, and 2015 respectively, their films “The Breakup Guru,” “Jian Bing Man,” and “Detective Chinatown” grossed an impressive $111.4 million, $187 million, and $126 million. However, her ability to discover talent seemed to reach its peak with the comedy directorial debut of Jia Ling, titled “Hi, Mom.” This heartwarming film raked in a staggering $841.7 million during China’s Lunar New Year holiday of 2021, holding the record as the world’s highest-grossing film directed by a woman until Greta Gerwig’s “Barbie” was released two years later.
On her journey, Chen was given the position as president at China Ruyi Holdings, a multifaceted entertainment corporation encompassing film, streaming, and gaming, valued at approximately $3.4 billion on the Hong Kong stock exchange. In late January, she assumed the role of CEO at Wanda Film, Wang Jianlin’s prominent Chinese movie studio, after Ruyi, one of its major shareholders, acquired full control by increasing its stake in a deal worth around $310 million. As head of Wanda Film, a well-known Chinese movie brand, the 42-year-old Chen stands out as an exceptionally uncommon female studio chief in China, where many established studios are typically led by their older male founders. Wanda also represents China’s largest cinema chain, with 900 locations and over 7,500 screens, as well as ownership of Hoyts, Australia’s largest movie theater chain. However, Ruyi’s acquisition of Wanda Film did not include Legendary Entertainment, the Hollywood studio that was previously divested from by Wanda Group in a deal with its principals and private equity firm Apollo earlier this year.
Due to her impressive accomplishments and clever strategic decisions, Chen has been chosen as “The Hollywood Reporter”‘s Asian Producer of the Year. She will be attending the “THR” Women in Entertainment breakfast gala, which is presented by Lifetime, on December 4 in Beverly Hills.
Chen’s impressive history of success persists during her inaugural year as leader at Wanda. She confidently shares that every project we’ve participated in this year has yielded a profit.
As a movie producer, Wanda Film was responsible for China’s most successful summer release, titled “Successor“, a comedy-drama jointly directed by Yan Fei and Peng Damo. This captivating film revolves around a wealthy couple who disguise their wealth for years to instill humility and business acumen in their son, their heir apparent. The film grossed an astonishing $469.6 million. Other notable successes include Zhang Yimou’s “Article 20” ($337.6 million), the sequel to the animated family series “Boonie Bears: Time Twist” ($275 million), and the crime thriller “A Place Called Silence” ($192.9 million).
Besides its major titles, Wanda has also experimented with a strategy similar to Blumhouse Productions by releasing the low-budget horror film titled Yuanyang Lou. This movie revolves around a group of young individuals who agree to reside in a haunted mansion to secure a monetary reward. Currently showing, the film has amassed nearly $15 million. According to Chen, we managed the budget meticulously for this project, making it highly profitable.
Although Wanda has been enjoying a successful run, its executive recognizes an underlying sense of urgency due to challenges within the broader Chinese film industry. As of November 25, 2024, the total box office revenue from movies in China stood at $5.6 billion, representing a significant drop of 21% compared to the same period in the previous year. This decline is largely attributed to a shift in younger audiences (Gen Z and below) withdrawing from cinemas, with their cinema attendance rates plummeting rapidly.
Chen states, “Our youth audience in China seems to be dwindling. Going to the movies is no longer a regular aspect of their daily lives or spending patterns. This issue has recently caught my interest significantly.
Despite Wanda’s findings remaining consistent thus far, Chen is planning several strategic measures to address potential challenges ahead, taking a proactive approach.
Wanda is a powerful brand in China’s film industry, but when she arrived, many of its operations were separate,” she says. “To bridge these gaps, I started by linking all our resources into a unified, integrated system – one that encompasses everything from product creation to screenings and ancillary services.
Chen notes that in the world of Hollywood, it’s widely accepted that box office ticket sales for a blockbuster movie rarely exceed half of its overall earnings. The remaining portion is often made from income derived from intellectual property sales and merchandise.
She notes that in China, these additional income streams are projected to bring in less than 8%. This implies a vast opportunity, and we’re actively delving into it deeply.
Under Chen’s guidance, Wanda is now working on creating and selling merchandise lines based on its best film IP, as well as undergoing a significant renovation of several multiplexes. The aim is to expand these venues by incorporating exhibition areas, gaming zones, shopping facilities, and enhanced food and beverage options.
In essence, Chen expresses their desire for our movie theaters to serve as an attractive cultural center, encompassing diverse aspects of contemporary youth culture.
The executive indicates that Wanda will persist in creating blockbuster movies led by major stars, however, the current market patterns suggest a need for the company to take daring risks in their experiments.
In September, Wanda collaborated with Chinese gaming firm HoYoverse for a partnership focusing on location-based entertainment to commemorate the fourth anniversary of the highly popular worldwide fantasy role-playing game, “Genshin Impact”. The collaboration saw certain Wanda cinemas metamorphose into themed “Genshin Impact” cosplay zones, offering exclusive merchandise and a live performance of the game’s famous soundtrack in their Imax theaters. Wanda reports that this project, initially rolled out on a trial basis at only a few theaters, surpassed expectations, earning over $1.4 million from ticket sales for the concert. Moreover, the event gained significant traction on social media, leading to an increase in Gen Z ticket sales – from the typical low digits to over 40 percent.
Chen emphasizes that a key focus for us currently is to keep advancing projects that entice young viewers to return to movie theaters. He believes this is crucial for the continued success and growth of our business.
This story appeared in the Dec. 4 issue of The Hollywood Reporter magazine. Click here to subscribe.
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2024-12-10 20:25