China Outpaced North America in Box office Growth As is indicated in the graph,from 2005 t0 2010,China's theatrical revenue increased at a compound annual rate of 34%;from 20JI t0 2015,the pace quickened t0 43%per year.So far in 2016,China's movie revenue has increased 51qo,and there's no sign of a slowdown.In contrast,North America's theatrical business has been growing;at an annual rate of just over l%since 2005.There are two main factors driving this incredible growth.First,China is undergoing the largest and most rapid expansion of middle class in human history.Hundreds of millions of people are moving up to have fun.Secondly,cinema construction is booming.Every year,thousands of new cinemas are opening,providing millions of potential customers with the opportunity of enjoying the moviegoing experience in modem muIliplexes.Things will evenlually have to cool off,but with so many big cities still lacking multiplexes,it will be many yetus before China reaches a saturation point.