IP movies account for more than 30% of the main box office sales, movie and game linkage accelerates the pace of IP monetization

Among domestic films in 2015, more than 30% of the box office came from IP adaptations. This number is increasing year by year. With the in-depth exploration and polishing of network IP, the proportion of the IP movie market will continue to expand in the future. Among the many IP films, adaptations from novels account for the vast majority.

Original title Qingke Observation: "2016 Entertainment Early Investment Report" was released. How to dig gold when the pan-entertainment era comes?

With the sustained and rapid growth of the national economy, residents 'desire and ability to consume cultural and entertainment products have been rapidly improved. According to data from the National Bureau of Statistics, China's GDP in 2015 was 63.59 trillion yuan, an increase of 6.9% from 2014. Among them, the per capita disposable income of urban residents for the whole year was 31195 yuan, an increase of 8.2% over the previous year, and the actual increase after deducting price factors was 6.6%; the per capita disposable income of rural residents was 11422 yuan, an increase of 8.9% over the previous year, and the actual increase after deducting price factors was 7.5%. In 2015, the average consumption expenditure on education, culture and entertainment per person across the country was 1723 yuan, accounting for 11.0% of the total per capita consumption expenditure of residents across the country. With the continuous upgrading of residents 'consumption structure, the Zero 2 IPO Research Center predicts that the proportion of residents nationwide investing in education, culture and entertainment will further increase in 2016.

In addition, in 2015, the state paid more attention to the construction of legal systems related to the cultural industry, and the legislative work of the cultural industry achieved certain results. For example, in terms of the construction of public cultural services, the promulgation of the "Public Cultural Service Guarantee Law (Draft)" provides a more powerful legal basis and institutional guarantee for promoting the standardized and equal development of basic public cultural services and protecting the basic cultural rights and interests of the people. The advancement of cultural work at the grassroots level is a milestone. In terms of the development of the film industry, the promulgation of the "Film Industry Promotion Law of the People's Republic of China (Draft)" means that the country has incorporated the development of the film industry into the strategic level and promoted China's leap from a major film country to a strong country. China's film industry will also usher in new opportunities in a more legal environment.

In this context, the Zero 2 IPO Research Center released the "2016 Research Report on Early Investment in China Culture and Entertainment" to summarize and forecast the early investment opportunities of China's cultural and entertainment in 2016, including investment opportunities and development bottlenecks, for the industry.

China's movie box office hit a new high, with IP movies becoming the main box office.

In 2015, the total box office revenue in mainland China exceeded 43 billion yuan. Compared with 29.9 billion yuan in 2014, this is an increase of more than 13 billion yuan. At the same time, the number of movie-goers was 1.14 billion, a year-on-year increase of 48.1%. The number of screens exceeded 30,000, and there were 6210 theaters. A total of 8 movies in China have box office exceeding 1 billion yuan. Among them,"Monster Hunt" surpassed the previous domestic box office record "Lost in Thailand" with 2.439 billion yuan, setting a new box office record in China. Among them, the top 10 films accounted for nearly 40% of the total box office. A total of 7 domestic films entered the top ten, of which 5 exceeded 1 billion yuan. Only three imported films entered the top ten. There are 4 IP films and 3 series films. Except for "Macau", which is a Hong Kong film, the rest are imported films. Technology upgrades account for one remake movie and one cartoon. It can be seen that the originality of China's film market is weak.

Among domestic films in 2015, more than 30% of the box office came from IP adaptations. This number is increasing year by year. With the in-depth exploration and polishing of network IP, the proportion of the IP movie market will continue to expand in the future. Among the many IP films, adaptations from novels account for the vast majority. The reason is that online novels started early in the entertainment industry in China. After more than ten years of polishing and fan accumulation, they have strong shaping qualities.

China's online video industry has diversified development, and early investment has firmly laid out content entrepreneurship.

According to the "37th Statistical Report on Internet Development in China" recently released by China Internet Network Information Center (CNNIC), as of December 2015, the number of online video users in China reached 504 million, an increase of 70.93 million compared with the end of 2014. The online video user usage rate is 73.2%, an increase of 6.5 percentage points from the end of 2014. Among them, the number of mobile video users was 405 million, an increase of 92.28 million compared with the end of 2014, with a growth rate of 29.5%. Mobile online video usage was 65.4%, an increase of 9.2 percentage points compared with the end of 2014.

As the value of IP in online video screens is gradually amplified, early investors should pay more attention to how IP is realized. The IP monetization channel for online video has now generated multiple profit channels such as advertising, on-demand, previewing, and membership. The polishing of IP has gradually matured. Therefore, the investment value of online video lies in its low threshold for monetization and rapid expansion. And now online video content is gradually expanding, from online dramas to online student variety shows, including movies on demand. Moreover, new elements are constantly emerging in themes in various sub-fields. Therefore, content innovation in online video is the fundamental factor in quickly attracting fans and realizing monetization. Sustainable and innovative content productivity is an important part of testing the value of investment in this field.

After more than ten years of accumulation, online literature has become an IP content incubator.

Since 1998, online literature in China has begun to sprout, and online novels have gone from being free at first to being charged per word. In 1999, the first online literary work "The First Intimate Contact" was published in paper. Since 2005, online novels have been adapted into games and film and television dramas. There are also new versions of online literature adapted from traditional novels. In 2011, about 40 novels of Shanda Literature were adapted and copyrighted. In 2013, the Internet IP was snapped up by game companies and posted in the form of page games and mobile games. In 2015, IP operations entered its first year, and the multi-point linkage of cultural, film and television tourism has become a development trend in the industry. The number of online literature users in China is increasing year by year, and the usage rate accounts for 40%-45% of the total Internet users all year round. PC has become the main reading channel for netizens in China, with the average daily and time nearly three times that of PC.

Mobile games have become a red sea for online games entrepreneurship in China. Video games linkage accelerates the pace of IP monetization.

In 2015, the revenue of China's game market reached 140.7 billion yuan, a year-on-year increase of 22.9%. However, with the explosive growth of China's game industry in 2013-2014, the release of the demographic dividend has slowed down. Therefore, the growth rate of China's game industry is gradually slowing down in 2015. In 2015, mobile games accounted for 36.6% of the China game market, and the proportion is expected to continue to expand. In 2015, the number of mobile users in China reached 396 million, a year-on-year increase of 10.9%, surpassing end games and web games to become the largest group of game users. After 2014, the growth rate of mobile games dropped sharply. First, the cost of acquiring customers increased sharply, and second, the homogenization was serious.

Pan-secondary users continue to grow, and early investors pay attention to four types of entrepreneurial projects.

With the popularization of secondary mobile games, communities, and culture and content upgrades, China's Internet users have gradually increased their acceptance of the secondary industry. The consumption scope in the secondary field covers secondary content, hardware, derivative products, paid games, etc. It is expected that the expansion rate of marginal secondary consumers will continue to be higher than that of core consumers in the future. In terms of early investment, investors pay more attention to the social nature, community nature, content quality and derivatives market of secondary entrepreneurship.

There are many giants in all aspects of China's IP industry chain. Early investment opportunities are concentrated in the major fields of online literature, secondary yuan, and mobile games. The reason

why China's entertainment industry can comprehensively develop and develop at multiple points is that many original IPs have been accumulated and polished over the years to form a strong consumer market. Moreover, competition in various channels is fierce, promoting the development of the industry. IP has become an intangible product running through the industrial chain. The starting point for early investment should be in the three low-cost links with extended markets: online literature, secondary yuan, and mobile games.

The rest of the IP incubation and pan-entertainment industries are still full of opportunities for early investment, such as tool platforms represented by mobile apps such as Chanba, Yingke, and Niaopai; professional CPs represented by Miwei Media and Kaixin Mahua transform into a new generation IP; ToB companies serving the entertainment industry, such as animation production companies Chasing Light Animation and advertising placement solution providers Yingpu Technology; community Eput and Yuanshe with dimensional barriers; KOL incubation platforms with shared concepts; Bullet King and Snowball; As well as hardware projects with entertainment characteristics, such as Shengshi and Leke VR. These areas are still in their infancy and provide investment targets for early investors.

Editor: Nancy