Huayi Explores The New Revenue Model Of The Movie Industry &Nbsp; The Whole Industry Chain Expansion.

Hua Yi makes "Star".

As the leading film and entertainment industry in China, "the first stock of Chinese film"

Chinese

Taking stock of 2010, Huayi Brothers have been adjusting their development strategies. Wang Zhongjun, President of Huayi Huayi Brothers Media Corp, and Wang Zhonglei brothers, the president, have focused on how to solve the problem of a single profit model and a high degree of contribution to individual films.

This is also a topic for Chinese film industry.

"I think it's safer after going public."

Wang Zhongjun, chairman of Huayi Huayi Brothers Media Corp, evaluated the experience of listing in the past year at the end of 2010.

In September 27, 2009, Huayi Brothers succeeded in sprinting the gem through the audit of the China Securities Regulatory Commission, and was called "the first stock of Chinese films" by the industry.

Wang Zhongjun was repeatedly asked a question: the company mentioned in the prospectus "the company has a certain dependence on the Feng Xiaogang team."

In 2009 alone, the two films of "assembly number" and "if you are the one" produced by Feng Xiaogang studios account for about 40% of the total revenue and 18% of the total revenue of the issuer during the reporting period.

It worries the outside world that Feng Xiaogang is suffering from "dependency syndrome".

In 2010, this situation is getting worse.

In 2010, Huayi Brothers encountered three problems: first, Huayi Brothers accounted for 88% of the total box office revenue and copyright income in the third quarter of 2010, accounting for 88% of the total revenue. The proportion of revenue generated by Feng Xiaogang's earthquake in Tangshan accounted for 76.7% of the total box office and copyright revenue, which were higher than those of the US market and mature companies.

Second, in September, Huayi Brothers, including Huang Xiaoming, Xun Zhou and other artists, who were named "one elder brother and one sister", left one after another.

Relying on a few stars or directors to support the development of the film and television companies are facing the bottleneck of talent.

Third, Ma Yun and other star shareholders have banned the sale.

The outside world has raised doubts about its financial strength and the relationship between its shareholders.

In this regard, Huayi Brothers are also actively changing their development strategies and ideas.

In fact, Huayi is also actively training young directors.

For example, the movie "Hoh Xil" and "Li Mi's conjecture" are intended to give young directors room to grow.

At the same time, Hongkong director Tsui Hark signed a series of film "Di Renjie".

Learn how Hollywood works like the Harry Porter series.

As for the single profit mode of Chinese film business and the high contribution of individual films, Huayi Brothers' breakthrough was to cooperate with China online game giant network group in December 13th.

In 2010, the scale of China's online games industry reached 33 billion 800 million yuan, an increase of 24.9% over 2009, and will reach 41 billion yuan in 2011. It is the most profitable entertainment content sector.

Huayi wants to expand the company's income through online games.

As for the exodus of artists and the lifting of the ban on sale of shareholders, Wang Zhongjun responded that the exodus of the old artists could make Huayi have more energy to train new entertainers, and it may not be a bad thing.

"In fact, the profits of newcomers are relatively higher. If a star is left behind, it can only be divided into 5%, while a second place star can be trained to get 30% agent fees."

Hou Tao, vice president of Arts and consultancy research, said: "Huayi should consider setting up a professional manager body system that is more suitable for enterprise development, straighten out the mechanism of internal personnel training, motivation and entrepreneurship, invest in new brokerage companies and establish new development models under a larger system."

Huayi difficulty highlights the bottleneck of Chinese films

"The profitability of Huayi Brothers is not strong enough. What should we do after the listing?" Wang Zhongjun was asked this question as early as the 2009 roadshow before Huayi Brothers listed.

The reason is that its prospectus shows that from 2006 to 2008, Huayi business activities net cash flow is always negative.

Yi Kai capital CEO Wang Ran analysis, the reason why the cash flow is negative is that there is a time lag between the initial investment and the later income of the movie. After the screening, the investment can be recovered through a variety of channels. "Cash flow is negative does not mean that the company is not profitable, just shows that the company needs loans and financing to ensure cash supply."

How to maintain sustained profits is a question that has always been considered by film companies like Huayi Brothers.

But we have to admit that there is a high risk of "20% making money and 80% losing money" in the field of film investment.

Li Huabing, vice president of Hon investment group, which has invested in media industry for a long time, said that the performance of Huayi Brothers is unlikely to grow too much. This is a unique phenomenon in this industry, not only for Huayi.

This is the law of the development of the whole industry.

In the first 6 months of 2010, all the financial indicators of Huayi Brothers dropped sharply, operating income was 202 million yuan, down 22.29% from the same period last year.

According to the insiders, the main reason for the decline in Huayi Brothers' performance is the lack of cinemas and theatrical resources.

To this end, Huayi's new development strategy is to diversify and integrate upstream and downstream industries.

Since June 2010, the acquisition of Huayi music has carried out music business, investment cinema, stock participation technology, mobile game, HelloKitty Entertainment Park trial water animation, and 70 million yuan investment holding Huayi giant Information Technology Co., Ltd. to enter the online games industry.

In these layout, we can see Huayi's pieces for the future development of new media.

"I am optimistic about the new media."

Wang Zhongjun bluntly said, "the mainstream income of our films and TV works (Cinema box office and TV station broadcast copyright) accounts for about 95% of the total income, which is upside down with the US. The mainstream income of the United States is 30% and 70% is the income of other follow-up authorization (network authorization, etc.).

We hope that our other authorized income will also grow. For example, the mainstream income of the Tangshan earthquake has sold 100 million dollars, followed by 10% of income, which means that it has sold 10 million dollars.