(Bloomberg) -- Hollywood movies will start playing in China again this year, with one of the most anticipated new films, “Avatar: The Way of Water,” among those likely to get released there, Imax Corp. Chief Executive Officer Rich Gelfond told investors Thursday.
China is clearing through its backlog of local-language movies, Gelfond said during an earnings call. Films released on streaming platforms have “unleashed rampant piracy” in the country, he said. Both of those developments should pave the way for more Hollywood films to play in the country.
“We’ve been in business successfully in China for more than twenty years,” Gelfond said. “We remain confident that the recent setbacks in the market are only temporary.”
China has mostly iced out big Hollywood films during the pandemic. The stance was partly driven by strict Covid lockdowns in the country, and exacerbated by political disagreements with the US. In some cases, tensions went even further. Tencent Holdings Ltd. pulled its funding from the Paramount Pictures film “Top Gun: Maverick” over concerns it glorified the US military, according to a Wall Street Journal report.
Some films have still won approval to play in China in 2022. Universal Pictures’s “Jurassic World: Dominion” has made almost $155 million in the country, according to the studio.
“Avatar: The Way of Water,” a Walt Disney Co.-produced sequel to the 2009 James Cameron-directed mega-hit “Avatar,” also has a good shot of getting past the country’s censors, Gelfond said. The first film was financially successful in China and Cameron has a good track record in the country, he said.
Imax, whose big screens operate in 87 countries, reported revenue of $74 million in the second quarter, in line with analysts’ expectations. Second-quarter results included a $3.2 million impairment on a film investment, due in part to depressed box office levels in China. Imax shares rose 2.6% in after-hours trading to $17.87.