company behind TikTok. The Internet company agreed to pay Huanxi a onetime fee of 700 million Hong Kong dollars ($90 million) for the digital rights to Lost in Russia. The new partners also agreed to pool other content and to share advertising revenue.

Huanxi's bold giveaway impressed industry peers and delighted fans, who could now watch at least one of the season's big holiday movies. According to state-affiliated news source China Times, Lost in Russia was streamed more than 600 million times by 180 million households over the first three days of its release. The views were racked up by Bytedance's various video platforms including Douyin, Toutiao, Xigua Video, Huoshan and Wasu Fresh Time, as well as Huanxi's own in-house streaming service Huanxi Premium.

China's exhibitors, however, have been farless pleased.

A joint letter signed by the country's biggest theater chains, including Wanda, Dadi and Lumiere Pavilions, promised to boycott all future releases from Huanxi, and urged China's Film Bureau to intervene. “This goes against the payment and revenue model that the movie industry has cultivated over many years, is trampling and intentionally destroying the movie industry and premiere models, and plays a lead role in causing destruction,” the letter said.

The film bureau has yet to take any action, and Huanxi contends that it remains committed to the theatrical release model, but was just trying to do right by its fans and shareholders amidst a historically bad set of circumstances. As of Thursday, shares in the company were up 25 percent since Jan. 23 on the Hong Kong