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Hollywood Struggles to Break Through as Local Films Dominate Overseas
2 Oct
Summary
- "Ne Zha 2" makes $2 billion in China, while Hollywood films struggle
- Domestic distribution veteran Jeff Goldstein learns new lessons about overseas releases
- Disney's Andrew Cripps says 80% of Japan's box office is local, 90% in China
The global box office landscape has undergone a significant shift in recent years, with Hollywood studios facing increasing challenges in breaking through overseas markets. This is the key takeaway from the discussions at TheGrill 2025, where industry leaders like Jeff Goldstein, the global distribution chief at Warner Bros., and Andrew Cripps, the global distribution chief at Disney, shared their insights.
Goldstein, who has overseen $4 billion in worldwide grosses in his first year, has learned valuable lessons about releasing Hollywood films internationally. He emphasizes the importance of trusting local teams, who can provide crucial insights into the preferences of diverse global audiences. This has become increasingly crucial as many countries, especially in Asia, have leaned more heavily on local films, with 80% of Japan's box office and 90% of China's box office now dominated by domestic productions.
Cripps, who is familiar with the Japanese box office, points to the surprise success of films like "Kokuho," a drama about a Yakuza leader's son, which grossed $104 million despite its seemingly niche premise. He notes that the local teams are quick to identify and capitalize on these unexpected hits.
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The challenges faced by Hollywood are evident in the performance of recent superhero films like "The Fantastic Four: First Steps" and "Superman," which have underperformed in Asia compared to previous Marvel and DC releases. In South Korea, for example, "Superman" grossed 59% less than 2013's "Man of Steel," while "First Steps" saw a staggering 78% drop from the 2015 Marvel film "Ant-Man."
However, there are also success stories, such as the impressive $38.7 million gross of Warner Bros./Apple's "F1" in South Korea, which topped the film's $30 million earnings in the United Kingdom, one of Formula One's biggest markets. Goldstein attributes this to the responsiveness of local teams, who quickly capitalize on emerging trends.
As the global box office landscape continues to evolve, Hollywood studios must adapt and find new ways to connect with diverse international audiences. The insights shared by Goldstein and Cripps highlight the importance of understanding local preferences and empowering regional teams to navigate the changing dynamics of the industry.
