Analysis: Why ‘Ne Zha 2’ Wasn’t a Global Smash

[para. 1] "Ne Zha 2," an animated film rooted in Chinese mythology, has achieved domestic success but struggles internationally. The movie has grossed $2.15 billion, yet less than 3% of that comes from outside China. This highlights the ongoing challenge faced by Chinese films in appealing to global audiences. [para. 2] Despite being the highest-grossing animated film in China and the first non-Hollywood film to surpass $2 billion, its overseas earnings lag significantly. It ranks fifth in global box office history, behind major Hollywood titles like "Avatar" and "Titanic."

[para. 3][para. 4] The film narrates the story of Ne Zha, a demon-born boy who defies his fate, becoming a symbol of national pride in China. The film's resonance with local audiences stems from their understanding of its cultural context. However, Western audiences find it challenging to connect due to differences in cultural narratives. Hollywood's dominance in high-visual-effects films restricts the scope for Chinese films to stand out globally.

[para. 5][para. 6] In contrast, "Captain America: Brave New World," released the same day as "Ne Zha 2," amassed $412 million, with a substantial portion from outside North America. This disparity underscores the challenges Chinese films face in foreign markets. The use of Taoist cultural elements and release in Chinese with English subtitles further hinders its global reception. An English-dubbed version is being developed, managed by a team that successfully translated the video game "Black Myth: Wukong."

[para. 7][para. 8] Broadly, Chinese films with strong local traits struggle internationally due to varied aesthetic preferences and the lack of globally recognized stars. Maoyan data shows "Ne Zha 2" ranks 10th among Chinese films overseas, with the top ranks dominated by martial arts films like "Crouching Tiger, Hidden Dragon," whose stars had international recognition before its release.

[para. 9][para. 10] Critics argue the film faced inadequate overseas promotion. Distributor CMC Corp. cited limited preparation time and weak media engagement, though this statement was later deleted. The film struggled to secure as many screenings as "Captain America" in North America, as theaters prioritize profitability and have pre-existing studio agreements.

[para. 11][para. 12] Chinese producers historically focus on domestic success before contemplating international releases. Global films, on the other hand, strategize for international distribution from the start. However, awareness of the need for earlier international engagement is growing among Chinese companies. Despite the existing hurdles, animation holds promise for better international reception due to its broader accessibility and appeal. In 2022, animation captured 16% and 24% of box office revenues in China and the U.S., respectively, as noted by CMC Vice President Ying Xujun.

[para. 13] Thus, while the domestic market provides immense revenue potential, Chinese filmmakers are starting to recognize the importance of global markets. However, international distribution often remains secondary to domestic priorities, a stance driven by the substantial revenue from the local market.