China has shut down most of its movie theaters in response to the Wuhan coronavirus and it could have massive repercussions on the film industry

Willie Siau/SOPA Images/LightRocket via Getty Images

• China is shutting down most of the movie theaters across the region, around 70,000 screens, in response to the Wuhan coronavirus outbreak.
• Crowded public places have become the battleground for combatting the transmission of the Wuhan coronavirus. As travel ramps up around the Chinese Lunar New Year on January 25, so have the risks of spreading the disease.
• A dozen or more films scheduled to be released during the start of the year have been postponed or are at risk of being postponed.
• Visit Business Insider's homepage for more stories.

China's $9.2 billion box office market, the second largest in the world, is expected to be hit with massive losses as the bulk of the country's theaters have shut down, closing more than 70,000 screens in the wake of the Wuhan coronavirus outbreak.

The shutdown comes during a peak season for movie sales in China as families and friends gather to celebrate the Chinese Lunar New Year.

Sales topped $1 billion during the holiday week last year, and were expected to generate roughly as much money this year. But as the death toll from the virus reaches over 100 people, efforts intensify to limit interaction in crowded public spaces. The economic impact could be devastating, with the potential to drag down global film revenue as much as $2 billion.

Distributors and producers tried to alleviate the damage by indefinitely postponing the release of at least six blockbuster films, according to THR.

Most of the companies bearing the brunt of the losses are Chinese, but Canada-based IMAX, which operates over 600 theatres in China, is expected to be hit after postponing films that were set to be released for the Chinese New Year.

If the epidemic persists into the coming months, US film companies could also experience big losses as several US box office hits like "Jojo Rabbit" and "Little Women" have been set to roll out in China in February. But February postponements could send shockwaves through the calendar as March releases like Disney's "Mulan" and the latest James Bond film "No Time to Die" vie for limited showtimes.

"The safety of Chinese audiences is our top priority," IMAX said in a press release. "IMAX supports the decision to postpone the release of the Chinese New Year film slate and believes it to be the best course of action in an unfortunate situation."

NOW WATCH: What it's like to ride the world's longest flight