Yangguang Finance Review ｜ Attract the film and television industry to invest in living water and tell the beautiful story of China.
Directed by the State Film Bureau, the 21st Shanghai International Film Festival sponsored by the Central Radio and Television General Station and the Shanghai Municipal People’s Government is under way. The development of China’s film and television industry has made remarkable achievements in recent years, from the first breakthrough of 10 billion in 2010,By the end of 2017, the total box office of China movies has increased fivefold in just seven years.The investment of capital in the film industry is also increasing at an annual rate of about 50%. The entry of capital has greatly enhanced the vitality and influence of industrial development, and many investors and production companies have shared the huge dividends in the development of the film market.
What is the capitalization scale of our film and television industry and what are its characteristics? Capital is a double-edged sword. What problems does the rapid expansion bring? How to stand out among many film and television companies and how to reflect their competitiveness?
Attract the film and television industry to invest in living water and tell the beautiful story of China.
Economic voice commentatorZiliang
Dean, Cultural and Economic Research Institute, Central University of Finance and EconomicsWei pengju
140 billion market, competing with each other.
Voice of the Economy commentator Zi Liang:How to evaluate the progress of capitalization of China’s film and television industry in recent years?
Wei Pengju, Dean of Cultural and Economic Research Institute of Central University of Finance and Economics:The main reason why capital is enthusiastic about the film and television industry is to take a fancy to the dividends.Policy dividendThe country has regarded film development as a very important part of its cultural development strategy, and the Film Industry Promotion Law was specially promulgated two years ago.Consumption dividendThe people’s yearning and pursuit for a better life has become the biggest market potential.
Voice of the Economy commentator Zi Liang:What order of magnitude has the annual investment scale in the industry reached? What are the structural features?
Wei Pengju, Dean of Cultural and Economic Research Institute of Central University of Finance and Economics:Around 2016, the scale of our entire film industry should have exceeded 140 billion, which is a rough estimate. Structurally, at present, we mainly invest more in hardware and channels, such as cinema lines.In 2017, the number of movie screens in China surpassed the United States in one fell swoop, becoming the first in the world.
The investment in content should be about 30 billion yuan per year for production. There was a crazy period of rapid growth before, and the growth at this stage began to be reasonable, and the investment gradually improved from hardware to software.
Voice of the Economy commentator Zi Liang:Capital investment has brought rapid expansion to China film and television, which has both advantages and disadvantages on the content itself, and this is also a hot issue in the industry. What do you think of this?
Wei Pengju, Dean of Cultural and Economic Research Institute of Central University of Finance and Economics:There is no doubt that the attribute of capital is the primary pursuit of profit, which will form a certain tension with the artistic attribute of movies. But on the whole, judging from the development history of international film industry and China film industry, the relationship between them is still harmonious, and the capital is actually very clear.If you want to make a profit, you must first have high-quality content and form a good IP..
Now, this film investment model dominated by mainstream companies has basically stabilized. A large amount of non-industry capital has also begun to enter the film industry, but it is more cautious and rational, mainly with investment. All these indicate thatFilm and television and capital tend to be rational..
Voice of the Economy commentator Zi Liang:Obviously, the cooperation between capital and the film and television industry itself needs further running-in. How to make more effective use of capital to make the film industry in China develop better?
Wei Pengju, Dean of Cultural and Economic Research Institute of Central University of Finance and Economics:First, improve market concentration.Nowadays, the concentration of China film and television companies is becoming more and more obvious, such as Light Media, which has gained capital through listing and formed a leading position in the industry. But I think, from the content to the channel, to the distribution, and then to the development of derivatives, industry consolidation is still not strong enough.
Second, we should encourage social capital to create content.Do investment in the sense of assets, rather than focusing too much on channels to make quick money or investments in areas such as distribution.
Third, if China films want to enter the international market, they should encourage capital to play an important role.On the one hand, it is beneficial for capital to obtain wider benefits in a larger market; On the other hand, it is also very conducive to the healthy development of China films in the direction of more international competitiveness.
Voice of the Economy commentator Zi Liang:With the continuous improvement of industrial concentration, enterprises can finally stand out and must have core competitiveness. What do you think is the core competitiveness of film and television industry companies?
Wei Pengju, Dean of Cultural and Economic Research Institute of Central University of Finance and Economics:The first is content, which is the core competitiveness of the film industry.Second, we should gradually take the mode of the whole industry chain, so that the value of content can be universally realized in the whole industry chain.Only when the content value is "eat more than one dish" and the income is maximized can the enthusiasm of social capital be further stimulated. Therefore, having content production and its industrial chain is the core competitiveness of leading companies.
Wei Pengju, Dean of Cultural and Economic Research Institute of Central University of Finance and Economics:From the industrial point of view, only the complete story can be told, the story has great potential to dig deep, and the complete content with intellectual property rights protected by law is the biggest key point of content production.
In my opinion, the content that reflects the excellent traditional culture of the Chinese nation, Chinese’s thoughts and Chinese’s longing for a better life must be the most popular and potential content in the film market.