The 28th Shanghai International Film Festival (SIFF) recently kicked off under the slogan "Step In, Get Immersed." Long before audiences entered cinemas, Shanghai itself had already become part of the show.

Historic neighborhoods were transformed into film-themed streets, immersive walking routes connected iconic movie locations, and cafes, shopping districts and parks became extensions of the festival. Similar scenes unfolded at the Beijing International Film Festival earlier this year, where screenings and cultural events spread across malls and public spaces, bringing cinema into people's everyday lives.

Behind these changes lies a much bigger story than the evolution of China's film industry. 

Across China, films are no longer seen simply as cultural products or box office performers. Increasingly, they are becoming catalysts for tourism, retail, cultural experiences and urban consumption, as the country builds a broader "Film+" economy to unlock new sources of growth.

Statistics from last year's Shanghai International Film Festival illustrate this trend. According to official figures, last year's SIFF generated nearly five billion yuan ($739.6 million) in economic activity for transportation, hotels, restaurants, tourism and retail. Nearly one-third of festivalgoers traveled specifically to Shanghai to watch films, staying an average of six days and contributing 1.47 billion yuan in tourism revenue alone.

Recognizing this potential, China is increasingly looking beyond box office receipts. The focus is shifting toward how films can attract audiences to shopping districts, cultural venues, tourist attractions and local businesses, creating an integrated "Film+" consumption ecosystem. Rather than measuring success solely by ticket sales, the goal is to maximize the broader economic value generated by cinema.

A vast film market

The market potential is enormous. Data released by China's National Film Administration show that the country's film industry generated 817.3 billion yuan in total industrial output in 2025. Even more striking is the industry's multiplier effect – every 1 yuan earned at the box office generated approximately 15.8 yuan in related economic activity.

These figures demonstrate not only the scale of China's film market but also that the value of a movie now extends far beyond the two hours audiences spend in theaters. Its true potential lies in its ability to activate a much broader commercial ecosystem.

A recent example is the surprise hit Dear You. As of June 15, the low-budget production filmed in the Chaoshan dialect had earned 1.74 billion yuan at the box office, ranking second nationwide this year. Yet its greatest commercial success may lie beyond cinemas.

The film has sparked a tourism boom across south China's Chaoshan region. Local governments quickly introduced movie-themed travel routes, while hotels, restaurants, transportation services and retailers all benefited from the influx of visitors. A single film effectively linked multiple industries into one integrated consumption chain.

Animation has demonstrated another dimension of the film economy. The 2025 animated blockbuster Nobody showcased the commercial power of intellectual property. More than 800 licensed products generated nearly 2.5 billion yuan in retail sales. Partnerships with over 30 companies extended the film's reach well beyond theaters, with one branded coffee collaboration selling more than five million drinks in just three days.

These examples highlight a key evolution in China's film industry. Increasingly, the real value of a movie lies not only in what audiences watch, but in everything they do before and after leaving the cinema.

China's 'Film+' strategy

Of course, the industry also faces challenges. Young consumers now have more entertainment choices than ever before; short-form dramas, livestreaming and live performances are competing directly for people's time and spending. Meanwhile, China's film IP development and long-term commercial operations still lag behind more mature international markets.

These realities mean that relying solely on blockbuster releases is no longer enough.

Instead, China is promoting a broader "Film+" strategy that integrates filmmaking with tourism, cultural consumption, manufacturing and overseas expansion. Policymakers are encouraging the creation of immersive film-themed consumer spaces, revitalizing classic movie IP and extending the commercial life cycle of successful productions.

The strategy is already moving from policy to practice. In 2025, nationwide campaigns such as "Travel with the Movies" encouraged audiences to visit filming locations across the country. This year has been designated "Film Economy Promotion Year," with local governments rolling out their own initiatives and more than 1.2 billion yuan in movie-going subsidies planned to stimulate consumption.

These efforts reflect a broader shift in China's growth model. As incomes rise, consumers are becoming more selective and increasingly seek personalized, experience-driven spending. It is becoming harder for any single film to appeal to everyone. Success now depends on understanding diverse audiences and creating experiences that extend well beyond the movie itself.

The evolution of China's film industry also mirrors the transformation of its wider consumer economy – simply offering standardized products and services is no longer enough. Sustainable commercial success will increasingly depend on offering higher-quality, more personalized experiences, embracing innovation, and continuously creating new products and services that meet evolving consumer expectations.