Huayi Brothers PK Light media: Business Board film and television double male dispute

The 2012 film Market, Light Media (hereinafter referred to as "light") by virtue of "brakes" reverse attack, for a while in the past years industry Zhu Hua Brother (hereinafter "Huayi") scenery.





, 30 million of the investment, won more than 1.2 billion of the box office, earning a full 1000% of the profits, the light of the "Toupai" became the film market on a proud dark horse. "1.2 billion, indeed there is the ingredient of luck. The success of "Ted" is not inevitable. "January 16, Ray Media President Changtian in a telephone interview with The Times weekly reporter, said.





, in the past, a blockbuster of Feng Xiaogang's great-turn-back did not continue to play last year. Feng Xiaogang spent 19 years of painstaking effort "1942", the box office far less than expected. And since the film released Huayi shares plunged, 4 days market capitalisation shrank by nearly 1.3 billion, far more than the box office income.





However, the recent release of the "12 Zodiac" slightly boosted the confidence of Huayi. "Its domestic box office record has more than 800 million yuan" news announcement, Huayi shares the next day with the big city rose 3.55%.





"In fact, this is where the risk lies." From "1942", to the impact of the later competitor, "The great embarrassment", to the recent counterattack of the "12 Zodiac", the performance of Huayi's roller coaster reflects its reliance on single business is still too heavy, and the increasing pressure of profit. An analyst who declined to be named told The Times weekly.





Competition intensifies: box office running war





's success was a lot of accidents. "Climate, geography, people and." "As Changtian himself said," in the future, even if the film is better than this, but not necessarily a better box office. ”





and "1942" not ideal box office results are also a lot of accidents: the box office of the impact of the battle of the propaganda row, the box office encounter other hot film extrusion, key disturbances, "navy" short and so on.





"1942" Although the artistry is stronger, but after all, the business did not meet the expectations. This is actually a long-distance running, the future or see who can find a better and more box-office film. For Changtian, the next one to find a better film to prove himself is also a problem. "Hongyuan Securities media industry analyst Zhang Zeqing told The Times weekly reporter.





Changtian also admitted to reporters, "creative products is an accumulation of experience." Compared to huayi more than 10 years of practice, light film and television production time is relatively short, many have yet to grope. "Data show that light to promote the release of the launch, in August 2011, listed after the launch of the film and television drama investment, before the introduction of the film" Bronze Sparrow Taiwan "," four famous catch ", but the market reaction is relatively flat.




The release of
"Tae-so-embarrassed" suddenly showed the explosive power of light. In the first venture Securities analyst Wenjie View, "the success of the great" embodies the two advantages of light: One is the film distribution and program media business Synergy; second, the light has China's largest film direct distribution network, characterized by the resident marketing system.





Changtian in an interview with reporters repeatedly stressed the fact that "we are a company with its own media resources." Films made by light can be advertised through their own television programs and media outlets. In turn, the film will provide content for the television channels of light to form a benign business model of resource sharing. ”





"However, for the light, because did not with" the titans of the core creative group-Xu three-person group signed, faced with the failure of the successful mode of the factors. The analyst, who declined to be named, told reporters.





Changtian explained: "This is not absolute." We take the approach of project cooperation. Bundled cooperation has an uncontrollable risk. ”





for many years, rival Huayi actually relies on the way of project cooperation, although it has been exploring how to get rid of this dependence, especially the dependence on the director, but at present, the exploration effect is not obvious. How to reduce the impact of the current single project on company performance? Huayi did not respond to this head-on, Taiji responded, saying: "This problem needs to be in the long run." In "1942" than the market expectations, the company completed the Total movie box office 2 billion target. ”





But last year's third-quarter quarterly data on Huayi's embarrassment was not as satisfactory. Data show that its total revenue in the third quarter amounted to 259 million yuan, an increase of 71.72%, but net profit of only 28.76 million yuan, fell 25.67% year-on-year.





Multiple layout: The whole industry chain wins





In the "1942" than expected after the box office, Huayi intends to release the film production business development of good information. In early December last year, Huayi opened a high-profile 13th theater in Shenzhen. At the same time, Huayi announced that its wholly-owned subsidiary Huayi Brothers (Tianjin) Real Entertainment Co., Ltd. to the Hainan Mission Hills Hua Feng Cultural tourism Industry Co., Ltd. signed the "Planning Creative service Agreement", Real entertainment through to the project company to provide planning creative services to generate income of 20 million yuan.





Wang Zhenglei said that in 2013, the growth of huayi results will be more from the new business layout. Chairman Zhongjun also said that the future will strengthen mergers and acquisitions, including hospital line resources and derivatives developers, hoping to have substantial acquisition progress.





Huayi invests in music, games, cinemas, entertainment marketing, overseas movies, Real entertainment and other business, from the early films, TV dramas and artists brokerage three business sectors, into the current content production as the center, "content + Channel + derivative" of the whole industry chain Synergy mode.





to perfect the industrial chain, Huayi also began to reshape the relationship between the star and the company. Last April, Huayi launched the director's "H Plan" and signed 10 different directors, Tsui Hark, Urshan and Stephen.





"In fact, Huayi still has a very strategic vision." Its leading counterparts in the strategic layout is more in line with foreign models. Foreign film and television production company Real film and television revenue accounted for very little. Relying mainly on subsequent derivatives businesses to make money to hedge against the loss of film performance. Zhang Zeqing told The Times weekly reporter.





in Hollywood, for example, box-office receipts are sometimes less than 30%. According to the public data, the United States film Star Wars trilogy full box office revenue of 1.8 billion U.S. dollars, derivatives income of more than 4.5 billion dollars; the Disney animated film "Lion King" upfront investment of only 45 million U.S. dollars, the Harvest box office 780 million dollars, derivative income of more than 2 billion dollars.





last May, Huayi joined hands with Feng Xiaogang to set up Haikou film commune. At that time, Zhongjun proposed that Huayi's goal is to do "China Disneyland", the company will be confident in the future to maintain a 30%-35% annual growth rate.





but in Zhang Zeqing's view, "long-term investment takes a long time to make a significant profit contribution, and the stakes are high." Previously, Huayi's investment in the hospital line is still a typical loss.





Changtian's knowledge is more realistic. He told The Times weekly reporter, "The theater intervention is relatively late, currently not easy to try." But as competition intensifies and industry is integrated, there may be opportunities for investment and mergers in the future. "Undoubtedly, the whole industry chain model is a trend." Not only Huayi, the entire film and television entertainment industry has begun to enter the era of large-scale, industrial chain competition, from star-driven to mode-driven transformation.





Light will also move towards the integrated media group. Changtian told The Times weekly reporter, "very early began to study foreign large media entertainment Group business model, found that the whole media plus full entertainment is the common law." In this business model, can better realize the resource sharing, the cash flow balances each other. For a company, winning in the mode is the most important, depending on the individual product is certainly not long-term. ”