Summary of Key Points
Domestic animated films have evolved from being dominated by children's IPs in 2009 to the nationwide hit "Nezha: The Demonic Child's Sea Turmoil" in 2025, which grossed over 15 billion yuan, and have now become a thriving industry with a box office of over 51.1 billion yuan. However, the industry exhibits a polarized landscape where a few top-tier titles (such as the Nezha series and Xiong Shu Mei) reap huge profits, while most mid-tier works struggle to survive. In the next 3-5 years, traditional film companies and online-generated IPs (like "One Under") will enter the market more rapidly. Adapting traditional culture will remain the mainstream, but competition will intensify. Reputation and family-friendly appeal will become crucial for high box office success, and commercialization will expand beyond theaters to include merchandise and partnerships.
I. From "Happy Goat and Big Big Wolf" to "Nezha 2": Four Stages of Domestic Animation's Growth
The development of domestic animated films can be divided into four phases, each breaking market stereotypes:
1. 2009-2014: The "Enlightenment Era" of Children's IPs
At this time, animated films were primarily for children. The "Happy Goat and Big Big Wolf" series frequently broke the 100 million yuan mark, followed by IPs like Xiong Shu Mei and Mo Er Zhuang Yuan, with a shift from 2D to 3D production. This phase was low-risk and required minimal investment, showing the industry the potential for sustainable profitability.
2. 2015-2018: The "Awakening Era" of the Rise of Domestic Animation
"Journey to the West: The Return of the Great Sage" grossed 955 million yuan, attracting adults to theaters for the first time. The Z-generation helped spread word-of-mouth through spontaneous promotion. Although most works still failed to break the 100 million yuan mark, companies like Zhui Guang and Guang Xian laid the foundation for future success.
3. 2019-2024: The "Golden Age" of Diversification
"Nezha: The Demonic Child's Birth" with its 500 million yuan box office proved that animated films could not only be successful during the Spring Festival season but also during the summer holiday season for family audiences. Works like "Chang'an: Thirty Thousand Miles" and "The Young Lion" emerged, shifting the focus from children's to more general audiences. Marketing became more professionalized.
4. 2025 and Beyond: The "Mature Era" of IP Commercialization
"Nezha: The Demonic Child's Sea Turmoil" with its 15.4 billion yuan box office set a new record, demonstrating that animated IPs can generate long-term revenue beyond theaters. The threshold for non-child-oriented films has risen from 100 million to 1 billion yuan, creating a competitive landscape with multiple strong IPs such as the Nezha series, Lang Lang Shan, and Ba Xian.
II. How Do Animated Films Make Money? The Key Players in the Industry Chain
Where does the money for domestic animated films come from? It mainly comes from four areas:
1. Production: There are two main models, each with its advantages and disadvantages:
- Full-in-house production: Companies like Zhui Guang Animation and Hua Qiang Fantawild create the entire film, including directing, writing, and animation. This approach is costly but ensures quality and requires stable profits to support the team.
- Outsourcing: Companies like Guang Xian Cai Tiao Wu focus on creativity and outsource the animation production to multiple firms, offering flexibility but requiring strong coordination.
2. Production and Distribution: The producer (usually a combination of a production team and a distribution company like Maoyan or Guang Xian) is responsible for scheduling and marketing. Financial investment is minimal, and most producers are involved in the actual operation.
3. Marketing: From a casual approach to a professional one, high-budget films rely on professional companies like Xiao Zhu Culture for marketing. Effective marketing is essential to attract an initial audience.
4. Commercialization: Beyond theaters, revenue can be generated from online streaming rights, merchandise (such as谷子 and stuffed toys), and brand partnerships (e.g., Nezha 2's beverages and clothing). Only films with box offices over 500 million yuan generate interest in derivatives.
III. The Key to High Box Offices in the Future: Family-Friendly Appeal + Traditional Culture + Online Generated IPs
To succeed in the animated film market, the following factors are crucial:
1. Family-Friendly Appeal: Children's films are stable but struggle to exceed 100 million yuan; youth-oriented films (like "The Young Lion") can reach over 500 million yuan, but to exceed 200 million yuan, they must appeal to the entire family (like the Nezha series). Xiong Shu Mei is also trying to transition to a family-friendly format, but breaking stereotypes is challenging.
2. Traditional Culture: IPs like "Journey to the West," "Romance of the Three Kingdoms," and "The Investiture of the Gods" remain popular due to their familiarity and rich cultural content.
3. Online Generated IPs: Online animations and novel adaptations (like "One Under" and "Dou Luo Continent") are becoming increasingly popular. These IPs have existing fan bases, allowing films to generate revenue and support the original content.
4. Effective Marketing and Word-of-Mouth: Audiences are tired of clichéd stories; fresh perspectives and emotional resonance are needed. Good quality is essential, as poor films may fail due to negative reviews, and effective marketing is crucial.
IV. Industry Concerns: Polarization and Challenges for New Entrants
Despite being a thriving industry, there are several risks:
1. Polarized Box Office: Top-tier films attract most resources, leaving mid-tier works with insufficient revenue. Some works, like "Niu Lai," gain popularity through novelty but struggle to survive.
2. New Entrants' Challenges: Traditional filmmakers (like Lu Chuan and Xu Ke) may face difficulties in adapting to animation production, including long production times and unsatisfactory visuals. Animation series companies may lack the skills to tell stories for the big screen and marketing experience.
3. Reputation Risks: Poor quality, controversial statements from creators, and inappropriate partnerships can harm box office performance.
Conclusion
Domestic animated films have evolved from being children's entertainment to a cultural phenomenon. There are many opportunities ahead, but success requires a combination of good stories, effective marketing, and precise targeting. We look forward to more films like "Nezha" and "Chang'an: Thirty Thousand Miles" and hope for a more inclusive industry that supports diverse styles. The future of Chinese animation depends on the creativity of creators and the support of audiences.