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The Film Industry Is Facing Great Changes And The Ecology Of Film Giants Is Being Eroded

2020/7/21 14:05:00 2

CinemaRemakeFilm IndustryGreat ChangeFilmGiantEcologyErosion

178 days after the shutdown, the cinema resumed business.

On July 16, the state film Administration issued a notice that cinemas in low-risk areas could resume business on July 20 in an orderly manner under the premise of effective implementation of various prevention and control measures.

The guidelines for the prevention and control of the epidemic situation (hereinafter referred to as the guidelines for the prevention and control of the epidemic situation) should be published by the national film administration. All tickets are sold in the way of online real name booking and non-contact; cross seat ticketing is implemented to ensure that the distance between strangers is more than 1 m; the attendance rate of each venue shall not exceed 30%.

At the same time, the guide requires reasonable arrangement of sessions. The number of screening sessions is reduced in film projection places, and the daily arrangement of films is reduced to half of the normal period. The viewing time is controlled to no more than two hours for each show. The rest time between the venues is extended, and the studios are fully cleaned and disinfected. Different cinemas are arranged at different times to avoid the audience gathering in and out of the venue.

"We're already ready." From the listed giant to the person in charge of small and medium-sized shadow investment, they all sigh with emotion to the 21st century economic reporter.

According to the lighthouse data, as of 21:50 on July 20, the national box office reached 3.5704 million yuan, which is based on the fact that less than 10% of the cinemas in China have opened and important ticket warehouses such as Beijing have not yet opened. The national average ticket price is 22.7 yuan, of which the average ticket price of the newly released film "the first parting" is 28 yuan. Last year, the national average ticket price was 37.12 yuan. "Pretty good already." Several industry executives said.

Box office trends are picking up, and fundamental changes in the industry are taking place.

"Copy the bottom" small shadow cast

The average box office cost of China's film industry decreased by less than RMB 0.565 million in the same quarter compared with the same period in the same quarter, but the average box office cost of the film industry decreased by less than RMB 0.565 million in the same quarter. The average operating cost of the whole industry in the first quarter was 342% of the box office. A total of 42% of the cinemas are facing a cash flow shortage.

According to the report released by top, as of May 2020, there were 14197 cinemas with opening records, and 936 cinemas were cancelled from 2017 to 2020, of which 19 were cancelled in 2020 (excluding the companies whose approval was not completed).

"Many cinemas can't bear the pressure of wages, social security and rent. Cash flow is a big problem now." On July 20, the person in charge of Chongqing district and County movie studios said.

The giants are also suffering, but there is much more room for maneuver. At the end of April, Wanda film announced that an increase of 4.3 billion yuan was planned to be used for the new cinema project, supplement of the company's working capital and repayment of loans. Among them, the total investment of cinema project is 3.145 billion yuan, and the remaining 1.305 billion yuan is used to supplement working capital. Cinema project construction sites include Beijing, Shanghai, Guangzhou and other cities. It is planned to build 162 new cinemas from 2020 to 2022.

On July 14, Hengdian film and television announced that it had received a total of 51.3189 million yuan of government subsidies related to income (without audit). It has exceeded 10% of the net profit in 2019.

Before the huge government subsidies, Hengdian film and television cash flow is hardly optimistic. According to the first quarter report, the revenue of Hengdian film and television was 91.5461 million yuan, which was - 89.52% year-on-year; the net loss was 138 million yuan, which was - 186.6% year-on-year. Only 79.6771 million yuan of monetary capital was left on the account.

Giant, start to solve their own cash flow problems. Zeng Maojun, President of Wanda film, told the 21st century economic report that in the core area of a provincial capital in Northeast China, a cinema with a construction cost of more than 80 million yuan was finally bought for less than 20 million yuan, which shows the big price difference. More than Wanda. In March, Shanghai Film Group announced that it would launch the first "cinema anti epidemic relief fund" in China, with a total amount of 1 billion yuan.

The bigger change comes from the operation mode. In June, Wanda film announced the opening of franchise rights for Wanda cinemas. Zeng Maojun disclosed that the original expansion plan of Wanda film's self operated cinema will continue, but it will "focus on both the light and the heavy". He believes that the core competitiveness of Wanda film in the cinema end lies in its management ability. At present, Wanda has already joined the project.

Zeng Maojun did not deny that the epidemic accelerated the process. "In the face of uncontrollable factors, the cost of asset light mode is relatively low. There is also external demand. Many bosses find that the previous capitalization road is basically impassable and it is difficult to sell it. Entrusted Wanda management can improve efficiency. "

Tough film giants

If the giant still has an advantage in the channel side, in the content side, this advantage is offset by other ecological invasion.

On April 29, Huayi Brothers disclosed the plan for non-public issuance of a shares, with the total amount of funds raised no more than 2.29 billion yuan.

Behind the fundraising is that Huayi Brothers' cash flow is tight to a certain extent. According to the annual report of 2019, as of the end of the year, the balance of cash and cash equivalents on account was only RMB 554 million, compared with RMB 2.155 billion in 2018. In the first quarter of 2020, the balance of cash and cash equivalents on its account is only 268 million yuan. In the first quarter, Huayi Brothers' revenue was 229 million yuan, a year-on-year decrease of 61.4%; and a net loss of 143 million yuan, a year-on-year decrease of 52.64%.

Huayi Brothers a big problem is that many blockbuster market response is not as expected, causing doubts. "Huayi's over reliance on directors and resources from all sides is out of date." A number of core practitioners in the film industry spoke frankly to the 21st century economic reporter.

Just now, the launch of "Nezha's demon child" has changed the light media on the air outlet. On June 23, Wang Changtian, chairman of the board of light media, issued an internal letter, saying that it would reassess all the film projects in operation, focus on key points and produce high-quality products, and at the same time, improve the organizational structure and personnel training mechanism. In addition, Wang Chengqiao, the president of the film company, announced that he was the president of the film company, which was owned by the film company, changtiao. "The Devil boy of Nezha" is controlled by Yiqiao team.

According to the industrial and commercial registration data, through the penetration of equity, Tian Xiaopeng, director of "three styles", is the actual controller of October culture, with a shareholding ratio of 68.28%. The color bar house film company holds 28.11% of the shares, and Wang Changtian holds 11.766% of the shares. For the light, it means that the director's discourse power has increased significantly, and it also means that the risk is shared.

The once arrogant film giant put down his stature, but behind it was a greater ecological invasion. At present, the film and television business has become the main business of Wanda film. Zeng Maojun believes that the cost of IP will be greatly reduced across films and TV series, and Wanda's advantage in cinema channels will help to compete for IP premium capability. "The most important resource now is the header IP."

Tencent directly grasped the IP source. On April 27, Yuewen announced that Cheng Wu, the current Vice President of Tencent and CEO of Tencent pictures, was appointed as the CEO and executive director of Yuewen group. Tencent owns 57.06% equity of Yuewen.

"Tencent has a great influence on us since it joined the main body to read the articles. It is much more difficult to find big IP. It is more and more difficult for a single film company to face a large platform, and more and more ecology are coming in. All subjects are changing. " There is also a high pipeline of film companies.

 

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