PE, VC investment film and television companies to consider the point

Absrtact: Wen/Shanghai Han-Li Prospect Equity Investment Enterprise (Limited partnership) Qian Cofeng Zhao PE, VC investment film and television company, the first consideration is the market capacity. China's film and television market has a huge future, which will invest capital in

Wen/Shanghai Han Li Prospects Equity Investment Enterprise (Limited partnership) Qian Cofeng Zhao

PE, VC investment film and television companies, the first consideration is the market capacity. China's film and television market has a huge future, which will bring greater returns to investment in film and television companies, according to the latest research report on Oriental Securities. According to the report, China's mainland film box-office growth of about 900 million yuan from 2003 to 2009 more than 6.2 billion yuan scale, 2010 years over 10 billion yuan, an increase of more than 10 times times. In comparison, Huayi Brothers ' prospectus shows that 2008 China's film market box-office revenue for the first time exceeded the 4 billion mark, to 30% of the box-office growth in the world's highest. Visible in a short span of two years, the market "cake" is two or three times times larger.

TV dramas Market and film market have the same place, that is, there is a certain market capacity, the industry is full of competition, the elimination rate is high, overall, the "pyramid" structure. In contrast, the film market has a more explosive development prospects, in the past three years, the film box office of the annual compound growth rate of nearly 40% is illustrated by this point.

Hollywood is world-famous, with five major film producers: The United States 20th Century Fox Film Company (FOX), Disney (Disney), Paramount Film (Paramount), Columbia Film Industry (Columbia), Universal City Studios ( Universal). Comparatively speaking, the current domestic a-share film and television plate only Huayi brothers, Huayi film two listed companies, the market capacity is far from saturated, private culture and culture companies still have a lot to do.

Look at the development strategy of enterprises

Film and television companies usually have two kinds of development strategy: a big play "famous card", the huge signing of the Gold director and big-name actors, spending huge sums of money to create a team of luxurious works, to create a sensation of the "eye effect." For example, the domestic box office "Three Musketeers" director: Feng Xiaogang, Zhang Yimou, Chen Kaige's film is to go this line.

The other is to play a "cost-effective card", to cultivate the potential of the new generation of directors and actors, with a small input to shoot a unique visual angle of the small production, to make the audience "at the front of a bright" outstanding works. The most typical is Ning's "crazy Stone", Zhang Bai's "will love to the end" and so on. It is understood that "will love" filming production costs more than 10 million, Valentine's Day show two weeks, the Hospital line box office has reached 170 million yuan.

In comparison, the latter strategy is more sustainable and more in line with the idea of "small investment in big returns" in the investment community.

See if the business model is unique?

The film industry's ecological chain is divided into three sections: upstream is the production of film and television works shooting, Midstream is the distribution, downstream is the hospital line.

Making shooting, originally by Shadow, the Shadow, zhuying and so on the old state-owned "army" monopoly market, in recent years, has poured into a strong, rapid momentum of the "new" force-private film production company, the number of works and box office figures occupy the film market, a great catch. On the issue, with the successful overseas listing of Poly Bo, the power of the private sector has also sprung up, breaking the state-owned distribution company monopoly. Finally, the domestic leading hospital line enterprises, such as Wanda, Jin Yi and so many for the strength of real estate companies.

Throughout the film industry, presenting a three-segment linkage of the situation: upstream enterprises continue to expand their business, to occupy the middle and lower reaches of the market, and the middle and lower enterprises are also seeking to enter the upstream market. This shows that through the whole industry chain, the formation of their own unique, flexible business model, it is possible to become the most competitive enterprises.

The new development trend of film and television companies is to seek new media, including online games, anime and so on. Listed financing enterprises in this area has a unique advantage, such as Huayi Brothers and Giants network together, but how the successful integration of film and television companies, is not a small challenge and test.

To see the company team is outstanding?

Investing in a company is ultimately about investing in people. The highly competitive film and television companies rely heavily on "people", including management teams, directors, writers, actors, and filming crews. Whether the company team is sensitive to market trends, whether it has a thick and thin hair of the resources and contacts, whether the use of capital to strategize, rapid enterprise bigger and stronger, for the company's development has a decisive role.

Although the film and television companies are the investment sector this year, "Hot hair hot" bright spot, but the major PE, VC in the investment should not "brain fever", but also to look out for, comprehensive consideration of the market, corporate strategy, business model and the company team, can let capital bullets fly, and Tangwu!