Tech Security Update

• The worldwide box office is slowly recovering from the pandemic.
• China, the world's biggest theatrical market, has quickly rebounded and has produced the top two movies this year.
• Hollywood releases like "F9," "No Time to Die," and "Dune" have benefited from international markets.
• This year's Marvel movies haven't been approved for release in China, impacting their global grosses.

12. "Free Guy" (Disney)

Global box office: $331.3 million

US box office: $121.5 million (36.7%)

Description: Ryan Reynolds stars as a bank teller who discovers that he is a character in a video game. The movie was produced by Twentieth Century Studios, the former Fox film studio acquired by Disney.

11. "Eternals" (Disney)

Global box office: $336.4 million

US box office: $136.1 million (40.5%)

Description: Marvel's "Eternals" introduces a race of immortal beings who come out of hiding when an ancient threat returns to Earth.

 

10. "Dune" (Warner Bros.)*

Global box office: $365.5 million

US box office: $98.3 million (26.9%)

Description: "Arrival" and "Blade Runner 2049" director Denis Villeneuve's adaptation of the classic sci-fi novel of the same name by Frank Herbert, about a young man named Paul (played by Timothée Chalamet) who is caught in a war on the desert planet Arrakis between his family and another Great House.

*released simultaneously in theaters and on HBO Max at no additional charge for subscribers

9. "Black Widow" (Disney)*

Global box office: $379.6 million

US box office: $183.6 million (48.4%)

Description: Scarlett Johansson's Black Widow is reunited with her long-lost sister, played by Florence Pugh, when elements from her past come back to haunt her. The movie was the first Marvel Cinematic Universe theatrical release in two years.

*released simultaneously in theaters and on Disney+ Premier Access for an additional $30 fee for subscribers

8. "Shang-Chi and the Legend of the Ten Rings" (Disney)

Global box office: $431.3 million

US box office: $224.5 million (52%)

Description: Shang-Chi (Simu Liu) is ripped from his normal life when his father, the leader of the Ten Rings organization, returns. It's the first MCU movie to star an Asian lead and a primarily Asian cast.

7. "Venom: Let There Be Carnage" (Sony)

Global box office: $454.8 million

US box office: $206.6 million (45.4%)

Description: Tom Hardy reprises his role as Eddie Brock, who becomes the anti-hero Venom after an alien symbiote latches on to him. This sequel pits Hardy's Venom against Woody Harrelson's Carnage, a serial killer who comes into contact with the symbiote.

6. "Godzilla vs. Kong" (Warner Bros.)*

Global box office: $467.9 million

US box office: $100.5 million (21.5%)

Description: The culmination of Warner Bros.' "MonsterVerse," Godzilla and King Kong come face to face when Kong is removed from the safety of Skull Island.

*released simultaneously in theaters and on HBO Max at no additional charge for subscribers

5. "Detective Chinatown 3" (Wanda Pictures)

Global box office: $686.3 million ($685 million from China)

Description: Two Chinatown detectives go to Tokyo to help solve a murder.

4. "F9: The Fast Saga" (Universal)

Global box office: $721.1 million

Us box office: $173.0 million (24%)

Description: Dom Toretto's (Vin Diesel) estranged brother Jakob (John Cena) comes back into his life, which leads to another globe-trotting mission for Toretto and his crew.

3. "No Time to Die" (MGM/Universal)

Global box office: $734.4 million

US box office: $154.7 million (21.1%)

Description: In star Daniel Craig's final outing as James Bond, he's brought out of retirement to track down a madman who has gained access to a weapon that could kill millions of people.

2. "Hi, Mom" (Tiger Pictures Entertainment)

Global box office: $822 million ($821 million from China)

Description: After her mother dies, a woman goes back in time and meets the younger version of her mom.

1. "The Battle at Lake Changjin" (Bona Film Group)

Global box office: $888 million (all from China)

Description: A Chinese film about the battle of Chosin Reservoir in the Korean War, the movie quickly became the highest-grossing film in the world this year, based on only the China box office, after opening in October during China's National Day holiday. It will soon make its way to other markets like the US, UK, Ireland, and Australia.

• "No Time to Die" surpassed "F9" as the highest-grossing Hollywood release this year.
• But the Chinese film "The Battle at Lake Changjin" is the biggest movie at the worldwide box office.
• China's theatrical industry has recovered quickly from the pandemic thanks largely to local films.

The James Bond movie "No Time to Die," Daniel Craig's fifth and final outing as the character, surpassed "Fast and Furious 9" over the weekend as the highest-grossing Hollywood release this year. It's now earned $734 million at the global box office compared to "F9's" $721 million.

But it's still not the world's biggest movie of 2021.

That title belongs to the Chinese war film "The Battle at Lake Changjin," which has grossed $888 million just from China. It premiered in the US, the UK, and Ireland over the weekend and is set to debut next month in Australia. 

China dethroned the US last year as the world's biggest theatrical market, thanks largely to the success of local productions like "The Battle at Lake Changjin" and "Hi, Mom," a dramedy that is the No. 2 biggest movie in the world this year with $822 million.

The Chinese government intends to keep its box office at No. 1. The China Film Administration recently laid out its five-year film plan, which includes ensuring that local movies account for at least 55% of the China box office and increasing the number of screens in the region to 100,000 by 2025.

Meanwhile, most Hollywood films have struggled to even hit $200 million in North America as the theatrical industry slowly recovers from the pandemic.

"No Time to Die" has earned $154 million domestically, less than the previous two Bond movies, "Skyfall" and "Spectre." But it's had strong legs in recent weekends with small drops at the box office, likely powered by positive word of mouth and older audiences who waited to see the movie.

Variety reported on Monday, based on anonymous sources close to the production, that the movie could still lose $100 million given its hefty $250 million production budget before marketing expenses. 

MGM, the movie's distributor, pushed back in a statement to Variety, saying in part: "With the PVOD release of the film already doing stellar home viewing business, all while continuing to hold well theatrically, 'No Time To Die' will earn a profit for MGM, both as an individual film title and as part of MGM's incredible library."

• A fired Netflix staffer said co-CEO Ted Sarandos "missed the point" with his Chappelle apologies.
• Sarandos said that he "screwed up the internal communication" but that he "supports artistic freedom."
• The staffer was fired for allegedly leaking internal Netflix data to the press, an accusation they deny.

The fired Netflix employee who was helping organize a company walkout, scheduled to happen Wednesday, responded to co-CEO Ted Sarandos' apologies regarding the streamer's controversial new Dave Chappelle standup special.

"Ted still misses the point, this isn't about the special or taking it down," B. Pagels-Minor said on Twitter on Tuesday. "It's about parity in content. All we asked for was more trans content, investment in trans talent, and promoting trans content."

They added in another tweet, "Nothing about that asks Netflix to completely change strategy."

A Netflix spokesperson did not immediately respond to a request for comment from Insider.

Sarandos went on an apology tour on Tuesday about his communication around the Chappelle special, speaking with outlets like The Wall Street Journal, The Hollywood Reporter, Variety, and Deadline.

Sarandos told Deadline that he "screwed up the internal communication" and that he "should've made sure to recognize that a group of our employees was hurting very badly from the decision made."

"Of course storytelling has real impact in the real world," Sarandos told Variety. "I reiterate that because it's why I work here, it's why we do what we do. That impact can be hugely positive, and it can be quite negative."

He was referring to memos he sent in response to concerns over Chappelle's special, "The Closer," in which the comedian makes transphobic comments that have sparked ire from employees in recent weeks.

In an all-staff memo last week, Sarandos wrote in part, "We have a strong belief that content on screen doesn't directly translate to real-world harm."

In his Tuesday interviews, Sarandos also doubled down on his defense of Netflix's decision to release the special.

Sarandos told Deadline, "We are trying to please a world that is made of people of different tastes, sensibilities, and beliefs, and it becomes very difficult to do that for everybody." And he told Variety that he supports "artistic freedom and the creators that work at Netflix."

Pagels-Minor, who is trans and prefers gender neutral pronouns, told The New York Times that they were the fired after being accused of leaking internal data to the press, which they denied to the Times through a lawyer.

A Netflix spokesperson told the Times that "this employee admitted sharing confidential information externally from their Netflix email on several occasions."

"They were the only employee to access detailed, sensitive data on four titles that later appeared in the press," the Netflix spokesperson said.

In the special, Chappelle said that "gender is a fact" and mocked the trans community. He also defended "Harry Potter" author JK Rowling by exclaiming "Team TERF," which stands for trans exclusionary radical feminist, a term which Rowling has identified herself as.

• Netflix has suspended three employees for crashing an executive meeting, The Verge and Variety reported.
• One of the staffers had criticized transphobic comments in Dave Chappelle's new Netflix special on Twitter last week.
• Netflix said the employees were not suspended because of anything they tweeted about the special.

Netflix has suspended three employees for attending an executive meeting they were not invited to, including a trans staffer who recently criticized the company's new Dave Chappelle standup special, "The Closer," The Verge and Variety reported on Monday.

The trans employee, senior software engineer Terra Field, tweeted a thread on Wednesday that went viral in which she said that Chappelle "attacks the trans community, and the very validity of transness - all while trying to pit us against other marginalized groups."

In a statement, Netflix said the employees were not suspended because of anything they tweeted about the special.

"It is absolutely untrue to say that we have suspended any employees for tweeting about this show," a Netflix spokesperson said. "Our employees are encouraged to disagree openly and we support their right to do so."

Field did not return requests for an interview.

During the meeting, Netflix co-CEO Ted Sarandos took questions about how Netflix should address employees and talent being upset about Chappelle's special, according to Variety.

Sarandos then sent an internal memo addressing concerns, in which he said that Netflix would not remove the special, The Verge and Variety reported.

"Chappelle is one of the most popular stand-up comedians today, and we have a long standing deal with him," Sarandos wrote, in part. "His last special, 'Sticks & Stones,' also controversial, is our most watched, stickiest, and most award winning stand-up special to date. As with our other talent, we work hard to support their creative freedom - even though this means there will always be content on Netflix some people believe is harmful, like 'Cuties,' '365 Days,' '13 Reasons Why,' or 'My Unorthodox Life.'"

He added: "Distinguishing between commentary and harm is hard, especially with stand-up comedy which exists to push boundaries. Some people find the art of stand-up to be mean-spirited but our members enjoy it, and it's an important part of our content offering."

Netflix declined to comment on the memo.

Other Netflix employees also spoke out against the special on Twitter, as did Jaclyn Moore, who is trans and is an executive producer on Netflix's "Dear White People."

Moore tweeted that she would "not work with [Netflix] as long as they continue to put out and profit from blatantly and dangerously transphobic content."

In the special, Chappelle said that "gender is a fact" and defended "Harry Potter" author JK Rowling - who has been criticized for anti-trans comments - by saying "Team TERF!," which stands for trans-exclusionary radical feminist.

• Every month, Insider looks at the most anticipated new TV shows using data from the app TV Time.
• The list is derived from US users who use the app to track and react to what they're watching.
• The original "CSI" series will be revived this month, and Apple will debut sci-fi series "Invasion."
• Visit the Business section of Insider for more stories.

5. "Ghosts" - CBS/Paramount+, October 7

Description: "Samantha and Jay throw both caution and money to the wind when they decide to convert a rundown country estate they inherited into a bed and breakfast — only to find it's inhabited by the many opinionated spirits of deceased residents who now call it home."

4. "Invasion" - Apple TV+, October 22

Description: "'Invasion' follows a global cast — including Sam Neill, Golshifteh Farahani, Shamier Anderson, Billy Barrett, and Shioli Kutsuna — as they try to navigate a terrifying new reality infested by lethal aliens."

3. "4400" - The CW, October 25

Description: "Over the last century, 4,400 people who were overlooked, undervalued, or otherwise marginalized vanished without a trace off the face of the planet. Now, inexplicably, they're back, returned to Detroit having not aged a day and with no memory of what happened to them."

2. "Chucky" - Syfy, October 12

Description: "An idyllic American town is thrown into chaos after a vintage 'Good Guy' doll turns up at a suburban yard sale. Soon, everyone must grapple with a series of horrifying murders that begin to expose the town's deep hypocrisies and hidden secrets. Meanwhile, friends and foes from Chucky's past creep back into his world and threaten to expose the truth behind his mysterious origins as a seemingly ordinary child who somehow became this notorious monster."

1. "CSI: Vegas" - CBS, October 6

Description: "When the Crime Lab's legacy and future are called into question, a brilliant new team of investigators led by Maxine Roby (Paula Newsome) must enlist the help of old friends Gil Grissom (William Peterson) and Sara Sidle (Jorja Fox). This combined force will deploy the latest forensic techniques to do what they do best — follow the evidence — in order to preserve and serve justice in Sin City and uncover the truth."

• "Shang-Chi" is now this year's biggest movie in the US with $196 million since its release.
• It was released exclusively to theaters and has sustained strong online engagement.
• But it hasn't been approved for release in China, which has hindered its global box office.
• See more stories on Insider's business page.

"Shang-Chi and the Legend of the Ten Rings" is officially the year's biggest movie in the US.

The latest Marvel movie surged to $196 million over the weekend, passing "Black Widow's" $183 million to become the highest-grossing domestic release of the year so far.

It's easy to deduce that the power of the Marvel Studios brand helped propel "Shang-Chi" to the top. The Disney-owned studio now accounts for the two biggest movies in the US this year. But there's more to "Shang-Chi's" rise than that.

The combination of an exclusive theatrical release and positive reception from critics and audiences helped the movie to this point.

'Shang-Chi' was released exclusively to theaters

When "Black Widow" was released simultaneously in theaters and on Disney+ for an additional $30 fee amid the pandemic, it sparked outrage from theater owners. Later, star Scarlett Johansson sued Disney, alleging the company breached her contract by not giving the movie an exclusive theatrical release.

So when "Shang-Chi" hit theaters exclusively earlier this month, the expectations were high.

It exceeded those expectations with a $94 million four-day opening, a Labor Day weekend record. It has shown strong legs since, dropping just 54% in its second weekend and then 37% and 38% in its third and fourth weekends. It's impressive considering many of the year's highest-grossing movies have seen big drops after their debuts, including "Black Widow," which dropped 68% in weekend two.

The National Association of Theater Owners (NATO), the largest theater trade group, released a critical statement after "Black Widow's" second weekend calling simultaneous release a "pandemic-era artifact." In an interview with Insider, NATO CEO John Fithian said that the strategy hinders a movie's box office, particularly because of piracy.

"When a movie is released simultaneously to a streaming service, a pristine copy of that movie is made available day one that it's in cinemas," Fithian said.

Data from the news site Torrent Freak showed that "Black Widow" quickly jumped to the top of its weekly list of most pirated movies after its premiere, while "Shang-Chi" debuted on the list at No. 5. This week, "Shang-Chi"is not in the top 10 at all, while "Black Widow" is No. 5.

After "Shang-Chi's" box-office success, Disney announced its remaining 2021 releases would be release to theaters exclusively with 45-day and 30-day windows. "Shang-Chi" will be available to stream on Disney+ and rent on digital platforms on November 12, two months after its theatrical release.

Theatrical exclusively seems to have helped the movie's momentum at the box office, but the film has also received glowing responses from both critics and audiences that likely helped its growth.

'Shang-Chi' has sustained online buzz and strong word-of-mouth

"Shang-Chi" was already a buzzworthy Marvel Cinematic Universe entry as the first in the franchise to star an Asian lead, with Simu Liu as the title character, and a primarily Asian cast. But since its release, it has sustained buzz and grown in word-of-mouth praise.

It's one of the best-reviewed movies in the MCU with a 92% Rotten Tomatoes critic score, as well as a 98% audience score. It also received an A grade from CinemaScore, which surveys audiences on a movie's opening night.

The positive response to "Shang-Chi" has likely helped it sustain its online buzz, which is illustrated by data from the analytics company Diesel Labs. The company pulls audience-engagement data from social and video platforms Facebook, Twitter, YouTube, and Instagram, which reflects posts, comments, and more across the platforms to gauge the level of engagement with a piece of content.

"Black Widow" debuted with higher engagement than "Shang-Chi," but quickly declined after its release. "Shang-Chi" has maintained higher levels of engagement across the measured platforms than both "Black Widow" and "Spider-Man: Far From Home."

The chart below illustrates the data:

'Shang-Chi's' global box office has been hindered by not being released in China

"Shang-Chi" is a huge hit, but it has yet to reach its full potential on a global scale - and it may not get the chance to.

While "Shang-Chi" is the biggest movie in North America, it's still trailing behind other blockbusters worldwide at $363 million.

Of Hollywood releases this year, "Shang-Chi" is behind Universal's "Fast and Furious 9" ($716 million worldwide), Warner Bros.' "Godzilla vs. Kong" ($467 million), and "Black Widow" ($378 million).

One big reason is that the movie has not been approved for release in China, the world's largest theatrical market, after a couple of controversies. Most recently, 2017 comments made by Liu resurfaced on Chinese social media in which he called the nation a "third world" country.

All foreign movie releases have to approved by the Chinese government, which has recently cracked down on media in general. This has particularly impacted Disney.

Its "Mulan" remake faced a media blackout ahead of its release in China and flopped in the region. And Disney's next Marvel movie, "Eternals," may not be released in China because its director, Chloé Zhao - who was born in the country - said during a 2013 interview that "there are lies everywhere" in China.

"I would be surprised if 'Eternals' got released in China," said Aynne Kokas, a media studies professor at the University of Virginia and the author of the book "Hollywood Made in China." "The controversy has gotten a lot of attention and has been a rallying cry for Chinese netizens."

• Every week, the streaming search engine Reelgood compiles for Insider a list of the TV shows that have been most prominent on Netflix's daily top-10 lists.
• Netflix counts a view if an account watches a movie or TV show for at least two minutes.
• "Lucifer's" final season debuted last week and the show was this week's biggest Netflix series.
• See more stories on Insider's business page.

9. "Money Heist" (Netflix original, 2017-2021)

Description: "Eight thieves take hostages and lock themselves in the Royal Mint of Spain as a criminal mastermind manipulates the police to carry out his plan."

Rotten Tomatoes critic score: 95%

What critics said: "It looks like the show might have changed genres in its final season." — Ask (season five)

8. "On the Verge" (Netflix original, 2021-present)

Description: "Four women — a chef, a single mom, an heiress and a job seeker — dig into love and work, with a generous side of midlife crises, in pre-pandemic LA."

Rotten Tomatoes critic score: N/A

What critics said: "What comes out is four characters that are less relatable than Delpy likely intended." — Decider (season one)

7. "Manifest" (NBC and Netflix, 2018-present)

Description: "When a plane mysteriously lands years after takeoff, the people onboard return to a world that has moved on without them and face strange, new realities."

Rotten Tomatoes critic score: N/A

What critics said: "Manifest's premiere is confident and declares that it hasn't lost any of its heart or soul, as the Stone family conquers the new threats that face them more together than ever, even if they're hundreds of miles apart." — Tell-Tale TV (season three)

6. "Sharkdog" (Netflix original, 2021-present)

Description: "Half shark, half dog with a big heart and a belly full of fish sticks! Together, Sharkdog and his human pal Max can take on any silly or messy adventure."

Rotten Tomatoes critic score: N/A

What critics said: N/A

5. "The Circle" (Netflix original, 2020-present)

Description: "Status and strategy collide in this social experiment and competition show where online players flirt, befriend and catfish their way toward $100,000."

Rotten Tomatoes critic score: N/A

What critics said: "I'm not even sure the snark of host Michelle Buteau can save season three of The Circle." — The Spool (season three)

4. "Cocomelon" (YouTube, 2019-present)

Description: "Learn letters, numbers, animal sounds and more with J.J. in this musical series that brings fun times with nursery rhymes for the whole family!"

Rotten Tomatoes critic score: N/A

What critics said: N/A

3. "Turning Point: 9/11 and the War on Terror" (Netflix original, 2021)

Description: "This unflinching series documents the 9/11 terrorist attacks, from Al Qaeda's roots in the 1980s to America's response, both at home and abroad."

Rotten Tomatoes critic score: N/A

What critics said: "Director Brian Knappenberger's five-part docuseries ... remains an upsetting, enraging, and largely even-handed history lesson about the past two decades." — Daily Beast

2. "Clickbait" (Netflix original, 2021-present)

Description: "When family man Nick Brewer is abducted in a crime with a sinister online twist, those closest to him race to uncover who is behind it and why."

Rotten Tomatoes critic score: 54%

What critics said: "Clickbait wants to send powerful messages about the dangers of social media in the digital age, but the hackneyed writing and unfathomable reveals can't save the show from the irony of being nothing more than an intriguing title." — AV Club (season one)

1. "Lucifer" (Netflix original, 2016-2021)

Description: "Bored with being the Lord of Hell, the devil relocates to Los Angeles, where he opens a nightclub and forms a connection with a homicide detective."

Rotten Tomatoes critic score: 86%

What critics said: "Over the years, it's gotten looser, funnier, more sure of itself and more emotionally engaging, all while showing admirable fealty to the building blocks of quality mainstream television." — Vanity Fair (season six)

• Data shows how much overlap of movies and TV shows there is between major streaming services.
• Disney+ had little overlap with its competitors, but has a smaller content library than other streamers.
• The biggest movie overlap was between Hulu and Paramount+; the biggest TV overlap was between Peacock and Hulu.
• See more stories on Insider's business page.

The last two years saw a wave of new streaming services enter a space that had already included heavy hitters like Netflix, Amazon Prime Video, and Hulu.

Disney+ and Apple TV+ landed in late 2019, followed by WarnerMedia's HBO Max and NBCUniversal's Peacock last year. And in March, ViacomCBS re-entered the ring with Paramount+, a rebranded and expanded version of CBS All Access.

With so many competitors vying for consumer dollars, exclusive content is a major factor in attracting - and keeping - subscribers. That doesn't just mean originals; it means licensed content not found anywhere else.

New data from Reelgood, a search engine that tracks where movies and TV shows are streaming, broke down how much content from each major streamer overlaps with others. While there is still some overlap between services, it is quite small in most cases.

Prime Video has a the largest content library of any streamer by far, especially when it comes to movies. As of June 2020, it had nearly 13,000 movies available to stream compared to Netflix's 3,700. So it would make sense that other streaming services' libraries would overlap with it.

It has particular overlap with Paramount+and Peacock. 12% of the movies on Paramount+ are also on Prime Video, according to Reelgood. 11% of movies on Peacock Premium (its more expensive ad-free plan that unlocks all of its content) are also on Prime Video.

The biggest film overlap is between Hulu and Paramount+, though. 15% of movies on Hulu are also on Paramount+ (just 6% of movies on Paramount+ are also on Hulu).

Disney+ had the least amount of overlap when it came to movies. 1% of movies that are on the platform are also on Prime Video, but other than that, there is no overlap.

However, Disney+ does have a smaller content catalog compared to other streaming players. As of last June, it had 615 movies and 235 TV shows, much fewer than the other major platforms available at the time like Prime Video, Netflix, Hulu, and HBO Max.

HBO Max and Netflix also had little overlap with other services. As companies license less and less content to Netflix to boost their own streaming products, Netflix has increased its output of original content.

The chart below breaks down the movie overlap further (read the chart by looking at the vertical axis and across, as in: 1% of movies on Prime Video are also on Netflix, 3% of movies on Hulu are on Netflix, etc.):

On the TV side, Disney+ still has little overlap with competitors, but again, it has a much smaller library than others. It does share 7% of its TV shows with Hulu, which Disney also has full operational control over.

21% of TV shows that are on Peacock are also on Hulu, the largest TV overlap Reelgood observed (Comcast, which owns Peacock and NBCU, has a 33% stake in Hulu, which it is expected to sell to Disney by 2024).

The chart below illustrates the data further:

• Disney's "Shang-Chi and the Legend of the Ten Rings" may not get a China release date.
• It could signal that fewer Hollywood movies will be approved in the country in the future.
• China is now the world's biggest theatrical market, driven largely by local films during the pandemic.
• See more stories on Insider's business page.

Disney's "Shang-Chi and the Legend of the Ten Rings" is a box-office hit after opening with $94 million over the four-day Labor Day weekend.

But the movie, which is the first Marvel Cinematic Universe entry headlined by an Asian character, still doesn't have a release date in the world's largest theatrical market: China, where foreign releases must be approved by the local government.

Deadline reported on Friday that a date may be out of reach after 2017 comments made by star Simu Liu resurfaced this week on Chinese social media, in which Liu called China a "third world" country.

The movie had already faced controversy over the title character's comic-book history. When first introduced in 1973, Shang-Chi's father was Fu Manchu, a character now considered to have perpetuated racist Asian stereotypes. Marvel Studios president Kevin Feige has addressed Shang-Chi's comic history, which has been rewritten multiple times over the years.

"Definitively, Fu Manchu is not in this movie, is not Shang-Chi's father, and again, is not even a Marvel character, and hasn't been for decades," Feige told Variety last month.

But beyond any concerns about the movie itself, "Shang-Chi's" China release, or lack thereof, reflects the country's media crackdown and the changing nature of its relationship with Hollywood, which has relied on the China box office to boost big-budget tentpoles.

Disney did not return a request for comment for this story.

China's crackdown is hurting Disney

Aynne Kokas, a media studies professor at the University of Virginia and the author of the book "Hollywood Made in China," told Insider that the "Shang-Chi" controversy is happening "in parallel with widespread tightening" of China media and its film market.

The country's regulations have particularly impacted Disney over the past year.

"Mulan" faced calls from outside China for a boycott because parts of the movie were filmed in Xinjiang, where officials have been implicated in human-rights violations against Muslim Uighurs. Following the foreign criticism, China ordered a media blackout of "Mulan" ahead of its release in the region. It ended up flopping with just $40 million over its entire theatrical run there.

A China release for Disney's next Marvel movie, "Eternals," is also uncertain. The movie's director Chloé Zhao, who was born in China, has faced backlash from Chinese nationalists over a 2013 interview in which she said "there are lies everywhere" in China. Chinese censors blocked mentions of her Oscar win on social media earlier this year after she won best director and her film "Nomadland" won best picture.

"I would be surprised if 'Eternals' got released in China," Kokas said. "The controversy has gotten a lot of attention and has been a rallying cry for Chinese netizens."

It could be a major loss for Disney, as Marvel films have performed well in China. "Avengers: Endgame" is the country's highest grossing foreign film with $614 million.

"'Shang-Chi's' global performance would benefit immensely from a release in China, both because of the clear cultural appeal and the fact that Marvel movies are usually top tier box-office performers in the Middle Kingdom," said Shawn Robbins, the Box Office Pro chief analyst.

Local movies are dominating China's box office

Since the release of "Endgame," China has passed the US as the biggest theatrical market in the world, due largely to how China's cinemas have rebounded during the coronavirus pandemic while the US's theatrical industry has struggled.

The rebound has been driven by Chinese films like "Hi, Mom" and "Detective Chinatown 3," which were released this year and quickly cracked the top five of China's biggest movies ever.

Only two Hollywood releases are currently in the top 10 highest grossing movies at the China box office this year: "F9" and "Godzilla vs. Kong."

More and more local productions are accounting for China's box office.

"There are Chinese blockbusters that Chinese filmmakers are making that people want to watch, and they feel less derivative than those made in Hollywood," Kokas said.

China has a 34-film quota on the number of foreign films released in the country per year on a revenue-sharing basis.

But Kokas predicted that fewer Hollywood titles will be approved in China in the coming years. Those that are approved will face a "much tighter regulatory environment," she said.

Robbins is more bullish about the future of Hollywood and China's relationship, though.

"China has an excellent catalog of locally produced content to drive theatrical business, but there's no doubt that Hollywood releases have also proven important to the market's overall box office year in and year out," he said.

• Early data shows that "Shang-Chi" isn't being pirated as much as other Disney movies this year.
• "Shang-Chi" is only in theaters, while "Black Widow" and "Jungle Cruise" also streamed on Disney+.
• "Shang-Chi" could have a stronger hold at the box office in its second weekend than "Black Widow."
• See more stories on Insider's business page.

Marvel's "Shang-Chi and the Legend of the Ten Rings" dominated the box office over the weekend with $90 million over the four-day holiday.

It's a welcome piece of news for theater owners who have insisted that the strategy of releasing a movie simultaneously to theaters and streaming is hurting their industry. "Shang-Chi," unlike previous Disney releases during the pandemic like "Black Widow," will be exclusive to theaters for at least 45 days.

A major part of the theater owners' argument is that a simultaneous release increases piracy.

"When a movie is released simultaneously to a streaming service, a pristine copy of that movie is made available day one that it's in cinemas," John Fithian, the CEO of the National Association of Theatre Owners (NATO), told Insider during a recent interview.

Data does suggest piracy could have been a complication for streaming releases.

"Black Widow," another Marvel movie that premiered in theaters and on Disney+ for an additional $30 fee, was the No. 1 most pirated movie for three weeks in a row on the piracy-news website TorrentFreak's weekly rankings, including the week it debuted.

"Jungle Cruise," which Disney released using the same strategy as "Black Widow," was the third most pirated movie on TorrentFreak's list the week it premiered, following "F9" (which became available to rent on digital platforms that week), and "Black Widow." It was the second most pirated movie the following two weeks, topped only by "The Suicide Squad," which was available to stream on HBO Max while in theaters.

Disney's animated "Raya and the Last Dragon" also topped the most pirated lists two weeks in a row after it premiered in theaters and on Disney+ in March.

"Shang-Chi," however, has lagged. It was No. 5 on this week's TorrentFreak list, which accounted for the week ending on Monday.

Here were the top five:

1. "Don't Breathe 2" - became available on video-on-demand platforms on Friday
2. "The Protégé" - only in theaters
3. "The Suicide Squad" - was available on HBO Max through Sunday
4. "Cinderella" - streaming on Amazon Prime Video
5. "Shang-Chi and the Legend of the Ten Rings" - only in theaters

"Black Widow" earned $80 million domestically in its debut weekend, the most of any movie so far this year for its first three days of release. And Disney said it made $60 million from Disney+ purchases during its first weekend. It's still the biggest movie at the US box office of the year so far with $182 million (it's earned $372 million worldwide).

But Fithian thinks "Shang-Chi" will have a stronger hold in its second weekend than "Black Widow," which dropped 67.9%. It also dropped 41% from its first Friday to Saturday, an unusually steep decline for a Marvel movie.

Fithian said "Black Widow's" drop "was dramatic because the pirated copies were available in less than 24 hours."