Film and television listed companies have different half-year performance in the first half of the year. Future development and reshaping their core business is the key

In 2016, the box office bubble squeezed out. The overall performance of the film market has been poor since the Lunar New Year holiday. There have been no phenomenal works in film and television dramas. The homogenization of variety shows is still very serious, causing audience aesthetic fatigue. In this context, how to interpret the half-year performance forecast of listed film and television companies?

Original title: The performance of film and television giants is very different. Huayi has experienced a significant decline.

Major film and television listed companies such as Light Media, Tangde Film and Television, Huace Film and Television, Hualu Baina and Huayi Brothers have recently announced half-year performance forecasts, but the five major film and television companies have compared with the same period last year. There is a big difference. In 2016, the box office bubble squeezed out. The overall performance of the film market has been poor since the Lunar New Year holiday. There have been no phenomenal works in film and television dramas. The homogenization of variety shows is still very serious, causing audience aesthetic fatigue. In this context, how to interpret the half-year performance forecast of listed film and television companies?

Light's huge increase in Huayi's significant decline in

performance forecast shows that Light Media's performance growth rate is eye-catching by 277%-302%. Compared with the situation in the same period last year, when the profit from the movie sold well decreased, this year Light Media has gained momentum since the Lunar New Year."Mermaid" alone has set a new Chinese box office record of 3.392 billion yuan. In addition, 6 films including "Who's Youth Is Not Lost" and "Hot Pot Hero" have closed a total of 3.98 billion yuan in box office. As well as the films "The Quest for the Dragon" and "The Villain Angel", which were released in 2015 but had a box office of 360 million yuan carried over to this reporting period, Enlight Media's box office revenue increased significantly compared with the same period last year.

At the same time, due to the lack of large-scale productions such as "The Legend of Wu Mei Niang", Tangde Film and Television's performance growth in the first half of 2016 was small, only 0.99%-23.03%. The operating income mainly comes from the TV series "Tianlun" and "Why Get Married" Income from the transfer of satellite TV broadcasting rights and information network communication rights; The performance growth rates of Huace Film and Television and Hualu Baina were similar, with 15%-35% and 20%-50% respectively. Huace Film and Television has launched popular dramas such as "Dear Translator","Medical Hall Smile 2" and "The Glorious Love" in the field of TV dramas. It is worth noting that the pre-sales of some film and television dramas of Huace Film and Television have reached about 1.5 billion yuan; Hualu Baina's performance revenue not only comes from film and television dramas, but also involves variety shows."Whirlwind Filial Son" and "Cross-Border Song King" have been highly recognized by the market, and "My New Clothes"(the third season of "The Goddess's New Clothes") is also actively preparing.

However, the half-year performance of Huayi Brothers, a major player in the industry, fell by 50%-25%. Huayi Brothers said that the main reason for the year-on-year decline was that in 2016, the company's main film and television drama projects such as "Rock Tibetan Mastiff","Lu Yao Zhi Ma Li" and "The Death of Romantic" are expected to be released in the second half of the year, while "Warcraft", which the company participated in, has not yet generated revenue from the first half of the year due to global distribution. However, the company has plans for major online movies, film and television dramas and variety shows, especially the main real-life entertainment projects will enter an explosion period of flowering in the second half of the year.

Wang

Bing, chairman of the diversified layout, believes that there are cycles in film and television drama production and movie release schedules, so the company's performance data for the first half of the year does not represent the performance of the whole year. Especially in the film industry, there is great uncertainty. "The profit model of a listed company must be diversified. It is definitely inappropriate to place all its performance on one film sector. But compared to movies, TV dramas and variety shows are relatively stable. Whether it is the production form or the production content, there are market rules to follow how the audience reacts with the market."

In response to the current decline in Huayi Brothers 'performance, Wang Bing believes that Huayi Brothers is currently investing relatively large in real-life entertainment projects, because real-life entertainment projects are long-term investments and require a long time to recover costs, but this part of the income is more stable than movies.

"Huayi Brothers underestimated the influence of Internet IP and missed the trend of Internet IP adapting movies." Liu Deliang, a special researcher at the New Economy and New Industry Research Center of Tsinghua University, has a different opinion. He believes that although Huayi Brothers has achieved diversified development in its own business, it has lost its original position and share in the film market. This is Huayi Brothers. There is no adequate consideration in the overall development strategy.

Secondly, Huayi Brothers did not expect the ability of film and television rising stars to quickly occupy the market. Huayi Brothers itself is very competitive in the film industry, but while diversifying, it also gives other film and television companies a share of market share. space. Take Huayi Brothers 'recent major film "Rock Tibetan Mastiff" as an example. Due to a major mistake in the national distribution work, which led to poor filming of "Rock Tibetan Mastiff", Huayi Brothers demoted two senior executives, which also reflects from one aspect that Huayi Brothers' decision-making level lacks sensitivity and foresight to the rapid growth of movie box office, and has not invested enough energy and financial resources in the film sector.

Reshaping core business is the key.

Growth in the film market in the first half of the year has become sluggish, and some industry insiders predict that in the second half of this year, there may not be even a single film worth more than 1 billion yuan. Judging from the currently released film list, there are only about 25 films that exceed 100 million yuan, and most films have stabilized at the box office of less than 50 million yuan. Liu Deliang emphasized that reshaping the core business is the key to how film and television companies develop in the future. In terms of Enlight Media, it successfully established its core competitiveness in the film market after listing, and also grasped several better IPs and strengthened its core business. On the other hand, Huayi Brothers has deployed many types of industries, but it has not achieved the desired results. "Ye Ning's joining Huayi Brothers may be because the decision-makers realized that the film field not only cannot be weakened, but may also need to be strengthened. Otherwise, if the original film market position cannot be guaranteed, the diversified business may also lose its foundation. Moreover, Huayi Brothers also has many shortcomings in film distribution. In the future, the company may readjust its management structure and reshape its core film business."

In addition to movies, for film and television companies with film and television dramas and variety shows as their core businesses, what is the performance trend in the second half of the year? Liu Deliang said that revenue from film and television dramas and variety shows is often linked to TV advertising. For now, in addition to the advertising revenue of the five major satellite TV stations, which can be maintained at a relatively good level, the overall growth rate of TV advertising is dropping significantly. Competition for variety shows has been fierce in the past two years, and some of them have been suspended by the State Administration of Press, Publication, Radio, Film and Television. If the current production of variety shows is maintained in the next few years, the market effect may not be ideal. At the same time, the production income from advertising in variety shows will not perform well in the future.

Editor: yvette