The epidemic has brought unprecedented challenges to the film and television industry, and many film and television companies have also reached the most difficult moment. However, the epidemic and difficulties have not beaten filmmakers. They still preserve their strength, adjust their strategies, and make good use of capital.
After the movie theater resumed business, there was a good news, and the Chinese movie box office quickly topped the list in the world. In the Spring Festival of 2021, representative films such as “Detective Chinatown 3” and “Hello, Li Huanying” proved the market’s strong demand for movies with a box office of billions of single films.
On June 11, the 4th China Film and Television Capital Summit will be grandly opened in Shanghai. At the summit, Fu Ruoqing, Vice Chairman/General Manager of China Film, Zeng Maojun, President of Wanda Culture Group/President of Wanda Film and Television Group, Wang Changtian, Chairman of Light Media, Wang Zhonglei, Vice Chairman/CEO of Huayi Brothers, Jiang Defu, Chief Executive Officer of Bona Film Group, and Hony Investment managing director Cui Zhifang, Maoyan Entertainment CEO Zheng Zhihao, Shengqu Games CEO Xie Fei and other industry leaders will discuss the relationship between capital and film and television in the post-epidemic era.
Fu Ruoqing, Vice Chairman/General Manager of China Film
Over the years, Fu Ruoqing has participated in the production and distribution of 100 excellent films such as “King Kong River”, “My Motherland and Me”, “My Hometown and Me” and “Hello, Li Huanying”. Today, he has stepped onto the stage from behind the scenes, taking on the responsibility of the film “national team”, constantly promoting the industrialization of Chinese films, and making film art continue to bloom.
Fu Ruoqing believes that the rapid development of China‘s film industry in the past was based on the scale and quantity of the industry, and it was an extensive business model. In the new era and new stage, the film industry should shift to the pursuit of quality, and speed up the adjustment, optimization and upgrading of the industrial structure while maintaining an appropriate growth rate.
In terms of capital, Fu Ruoqing is also very clear-headed. Creation is the core of the film. This requires master investment and master control of creation. He must understand both the creation itself and the market. It also needs to focus on the core of creation and make necessary for capital. Screening and selection. “On the creative side, we need to allow capital to serve the creation, and not be kidnapped by capital.” Fu Ruoqing said.
Zeng Maojun, President of Wanda Culture Group/President of Wanda Film and Television Group
As the leading theater chain, Wanda Films has encountered challenges such as missing Spring Festival files, closure of theaters, and performance failures in 2020, but it has also completed the highest level of fixed increase in the history of A-shares and the continuous growth of market share. Behind the new thinking , Is a new opportunity for the film and television industry represented by Wanda Films.
“We hope that investors will make long-term investments and don’t look at temporary gains. Our movies are all there, but they are not released.” Zeng Maojun once said.
Offline theaters struggle to survive, online impact offline, and compete for high-quality content… The epidemic has undoubtedly made the traditional theater industry aware of its inadequate risk resistance, but it also contains vitality and changes. Zeng Maojun believes that the next two years will be the real reshuffle of the cinema industry. The industry is becoming more and more headed, and for those who enter the game, timely change and innovation can survive for a long time.
In his view, the industry shuffle is mainly concentrated in the two major areas of content and investment. In the cinema industry, future content will usher in differentiation, and some movies will become the norm for online movies. “Millions of low-cost movies will choose online platforms, and high-cost large-production movies will choose theaters. In the past, movies with a cost of 10 to 20 million will basically face elimination.”
From an investment perspective, all film investment companies in the future will be more rational, and some film investment companies may not exist. “In the future, the investment in movie theaters will decrease, and the rents will decrease. This is the trend. I estimate that at least the next two years, the tail stock movie theaters will be eliminated, and the box office released will probably be 5% to 8%, and these box offices will return. Go to the head studio.” Zeng Maojun analyzed to the reporter of “Daily Economic News“.
Faced with the changes brought about by the industry reshuffle, Zeng Maojun was very calm: “The closing and expansion of movie theaters are business norms. Any business itself is a process of elimination and regeneration. First of all, you must survive and have better cash flow. In the future, you Only then can we have the opportunity to do appropriate mergers and acquisitions with capital.”
During the epidemic, Wanda Movies reorganized its own content section, positioning movies, drama series, and online student content as the “troika” of content layout. In the planning of Wanda Films, Wanda Films will focus on high-quality movies. In the future, it will control and publish 5 to 8 projects each year, and participate in 3 to 5 projects; the new media Eslite will focus on TV series; Cheng In the future, Asia Film and Television will continue to cooperate with the movies produced by Chen Sicheng, and focus on online content.
Zeng Maojun once told the reporter of “Daily Economic News“: “On the one hand, we will recover the investment (film and television content) in the first two years, about 1.5 billion to 2 billion yuan of funds. On the other hand, at least the next three years will be recovered. There is a new investment of 3 billion to 5 billion yuan. After so many years of series of IP precipitation, the next 2 to 3 years will enter the content harvest period.”
Wang Changtian, Chairman of Enlight Media
Deeply affected by the epidemic, Guangguang Media will still maintain profitability in 2020, becoming a representative of the steady performance of A-share film and television companies.
For Guangxi, because of its relatively good business performance, the company’s market value is in a good position in the industry. “But the company’s development potential is far from being fully utilized. We have full confidence in the company’s development in the next few years. The value of the entire industry is underestimated by the market and is not a completely normal state. I believe that with the development of the industry and the market With the improvement of the environment, investors’ confidence in the industry will be re-established, and some good companies with high market value and strong competitiveness will surely emerge.” Not long ago, Wang Changtian made a rare speech at investor relations activities.
After the accumulation of “Nezha’s Devil Boy” and “Jiang Ziya”, the mythical universe of Light Media has already begun to take shape. Wang Changtian said that the Chinese mythical universe of Light Media will probably be the next most important action of the company’s animation business. The whole will become an animated film company. In addition, Enlight Media has an early layout in the field of animation and has invested in more than 20 upstream and downstream companies. Wang Changtian firmly believes that it can develop together in the future. “Although animated films are the strengths and characteristics of Light Media, live-action films are expected to remain the company’s main source of revenue and profit in the future.”
In recent years, with the clearing of the film industry bubble, controversies such as high project risks, unreplicated explosions, and discounted valuations have always revolved around the film industry, and many film and television companies have struggled to survive in the capital market. In Wang Changtian’s view, the film and television industry has encountered many challenges and difficulties, and the industry is speeding up to clear up.
“In recent years, the film and television industry has undergone many market adjustments. At present, the entire industry is in a relatively sluggish stage. The value of the entire industry is underestimated by the market and is not a completely normal state. It will take time for the industry to recover, but the industry structure is still Continuous optimization, the surviving film and television companies are valuable assets and the backbone of the future industry development.”
Since the beginning of this year, following the strongest Spring Festival stall with a cumulative box office of more than 7.8 billion yuan and the strongest Qingming stall with a cumulative box office of more than 800 million yuan, the “51st stall” box office once again set a new record, with a cumulative box office of 1.673 billion yuan. As of May 30, the total box office of the Chinese film market in 2021 will reach 25.4 billion yuan.
Wang Changtian believes that the ceiling of domestic moviegoers does not currently exist. After the impact of the epidemic is eliminated, the movie box office is still hopeful to reach about 100 billion yuan, and there is still a lot of room; at the same time, the industry concentration is continuously increasing, and competitive companies are expected to occupy a larger share. “There is a lot of room for the development of movie content. At present, we will still focus on exploring the possibility of development. At the same time, we also have layouts in web dramas, artist management, live entertainment, music, and the Internet. Light has already diversified its profit sources in the first quarter. Characteristics.”
Wang Zhonglei, Vice Chairman/CEO of Huayi Brothers
In July last year, as the first blockbuster film after the epidemic, “Yai Hundred” received more than 3.1 billion yuan in box office. The release of “YAI HAI” was called the “bailout” by the industry. Such results are “very satisfactory” to producer Wang Zhonglei. “”Yabai” is more profound for me. If it were my last film, I would not feel sorry. It was a film that gave me less regret.” Wang Zhonglei was once accepting “Daily Economics”. “News” reporter said with emotion in an interview.
“The type of movie, especially the direction of movie creation, will be adjusted as the market environment changes, and mainstream movie audiences will also be updated every 5 years.” When talking about the future content strategy of Huayi Brothers, Wang Zhonglei insisted that the first task is Keep up with the times.
Choice data shows that in 2020, only 6 of the 24 A-share film and television companies have an operating income of over 1 billion yuan, and 10 film and television companies have annual revenue of less than 500 million yuan, and the overall revenue decline rate is 87.5%. Revenue has shrunk sharply, and net profit is also not optimistic. Of the 24 companies, 19 companies will have a net profit loss in 2020, with a loss rate close to 80%.
“I think this impact may continue for half a year to more than a year. Domestic listed film and television companies are relatively compound. In this process, film and television companies will be more rational and cautious in cost control and scale control. In the past few years, I I feel that everyone is too optimistic about project selection and market expectations. At least now Huayi Brothers is more rational and more cautious.”
“Before Huayi Brothers went public, it had already become a branded and public company. Its good and bad will be magnified. We are actually used to it. Huayi Brothers itself is a company that likes innovation and challenge, but dares to Challenges will definitely be questioned. The important thing is to continuously cultivate one’s own persistence and error correction ability.” Wang Zhonglei said.
Jiang Defu, CEO of Bona Pictures Group
As a leading film company, Bona Pictures has launched the “China Victory” trilogy, including the film “Changjin Lake” with the theme of resisting U.S. aggression and aid to Korea; “Anonymous” is about to launch and pays tribute to the unsung heroes on the hidden front; and pays tribute to ordinary retrogrades on the front line of the fight against the epidemic “Chinese Doctor”.
In the 20 years since its establishment, Bona Pictures has produced and distributed more than 270 films, with a cumulative box office of more than 30 billion yuan, and more than 400 awards at home and abroad. “We need to use the commercial value, artistic connotation, technological upgrading and humanistic expression of the film to create more good Chinese stories and spread them all over the world.” Jiang Defu said.
“I think we still have to reflect the Chinese way, promote the Chinese spirit and Chinese power, and create a portrait of the times, establish a biography for the times, and be virtuous for the times. At the same time, we also need to continue to broaden our international vision to collide with global culture. We need to use movies. The commercial value, artistic connotation, technological upgrading and humanistic expression of the company will create more good Chinese stories and spread them all over the world.”
Cui Zhifang, Managing Director of Hony Capital
Founded in 2003, Hony Capital’s managed capital scale has exceeded RMB 90 billion. As the managing director of Hony Capital, Cui Zhifang has focused on investing in culture and Internet for 11 years and is responsible for managing Hony Cultural Industry Fund. She invested in well-known companies in the industry such as Hollywood producer STX, Wanda Films, Lemon Pictures, Hunan Satellite TV’s Happy Go (now renamed Mango Super Media) and other well-known companies in the industry.
The change of the platform will not determine where users gather. Cui Zhifang believes that it is the content itself that determines where users gather. “From an investment perspective, the three factors of new technologies, new models, and new generations have changed the pattern of China’s film and television industry, but I don’t think some basic laws will be subverted, such as’content is king’, but also There is an inherent logic in some content production methods.” Cui Zhifang once said.
Xie Fei, CEO of Shengqu Games
Games are a unique IP category with broad development prospects. Shengqu Games, a game company with many well-known IPs such as “Legend World” and “Dragon Valley” in the domestic game industry, has also started cross-industry cooperation with Tencent and Dunhuang Wenchuang.
It is reported that, on the one hand, since 2015, Shengqu Games and Tencent have cooperated to launch a variety of products. In March of this year, Tencent Cloud, Shengqu Games, and Tencent Games announced that they have reached a strategic cooperation to jointly complete the cloud-based classic mobile game.
On the other hand, Shengqu Game Yunwen Bojian has also reached cooperation with Prince Gong’s Mansion Museum and Dunhuang Wenchuang to explore the integration and innovation of China’s excellent traditional culture and digital technology.
“For Shengqu Games’ products, we ultimately hope that it can withstand the test of time. Instead of being glamorous and slowly withdrawing from the stage during the traffic boom, one of the company’s important grasps is the long-term refined operation.” Sheng Xie Fei, CEO of Fun Games, once said.
Zheng Zhihao, CEO of Maoyan Entertainment
Maoyan Entertainment is a leading Internet entertainment service company in China, providing content services including online ticketing, promotional products, and advertising and other services for the film and television entertainment industry. In 2019, Maoyan Entertainment was listed on the main board of Hong Kong, and in July of the same year, Maoyan’s full-text entertainment strategy was released. Maoyan’s full-text entertainment strategy includes the “cat claw model” composed of five platforms, providing a full range of services for the Chinese entertainment industry in terms of ticketing, products, data, marketing, and funding.
Maoyan Entertainment is a leading distributor and producer of film and television content in China. Maoyan Entertainment has participated in the production or distribution of a large number of high-quality content, including “Hello, Li Huanying”, “Wandering Earth”, “My Homeland and Me”, “My Hometown and Me”, “Flying Life”, “Twelve Hours in Chang’an”, and “Falling Water”者” etc.
In 2020, 4 films with a box office of more than 1 billion yuan were born in the Chinese film market. Maoyan participated in the production or distribution of 3 of them, namely “My Hometown and My Hometown”, “King Kong River” and “Jiang Ziya”; Among the 7 major films, Maoyan participated in the production or distribution of 5 films. Among them, the box office of “Hello, Li Huanying”, which was produced and released by the master, exceeded 5.4 billion, ranking second in domestic film history.
In addition, Maoyan has a powerful data and publicity system and resources, and is the owner of the entertainment streaming media account matrix in China‘s head. The Maoyan professional application is a popular professional application in China‘s entertainment industry.
Zheng Zhihao, CEO of Maoyan Entertainment, has said on many occasions: “Based on data, products, publicity and other capabilities, Maoyan Entertainment is committed to cultivating services and polishing products, helping good content meet matching audiences, and creating growth for industry partners. Quantity value.”
Zhang Liangwei, Co-Director and Managing Director of Soochow Securities Research Institute
As one of the most senior analysts in the A-share media sector, Zhang Liangwei has been awarded “Best Analyst” titles such as New Fortune and Crystal Ball for many consecutive times since he joined the industry in 2009.
Zhang Liangwei’s mission is that the fundamentals of the leading media stocks are still very strong, and there is no obvious bubble in valuation. Compared with valuation, what is more critical is the continuity of the business model and the ceiling of industry development. The fundamentals of leading media companies will continue to improve in 2021, and there is still a lot of room for continued improvement in valuations.
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