800 million yuan to buy Ciwen IP drama: Suning Entertainment "suddenly turned around", is the sky-high price ticket or tuition?

what signal does SUNING want to reveal behind SUNING's purchase of Ciwen IP series with a profit of 800 million yuan?

original title: 800 million Buy Ciwen IP drama: SUNING's entertainment "sharp turnaround" under the regulatory storm, is the sky-high price of tickets or tuition fees?

introduction: what signal does SUNING want to reveal behind the purchase of Ciwen IP drama by taking out SUNING's annual profits to buy one?

"one stone stirs up a thousand waves, and two fingers make all kinds of sounds." Under the financial regulatory storm, many well-known large enterprises have reallocated their capital one after another, which has become one of the absolute focuses of social attention recently. Including Wanda, Fosun, Letv, SUNING and other enterprises with layout in the pan-cultural and entertainment field are also involved, and many seem to be only major strategic adjustments, but also under the influence of the butterfly effect, there are twists and turns in the film and television content industry. SUNING's PPTV has pushed the TV webcast single episode copyright to a new height with a sky-high price of 800 million yuan.

strong > / strong >

strong > is SUNING entertainment going to buy from international to domestic? / strong >

in the regulatory storm, real estate enterprises should be the most affected, so "Land King" has also faded from the media reports in recent years, while "King of Drama" has repeatedly reached new highs with capital gathering in the film and television content industry in recent years. According to the latest announcement of Ciwen Media, SUNING's PPTV has created a new high of TV series webcast copyright at a sky-high price of 800 million yuan, and there are many guesses in the industry, PPTV as the "second echelon" in the video industry. With such a large investment, it is by no means easy to recover the cost, so there are many questions about whether this is a return to the stage ticket or a capital-fuelled copyright bubble.

the story under the card is difficult to study, but above the card, we can see that SUNING's strategy in the entire entertainment field may have to return to China from overseas.

in this round of regulatory turmoil, SUNING is not "the target of public criticism", but in the previous CCTV report, although it may have been "accidental injury", SUNING was also named. SUNING was named by CCTV on the evening of July 18 and was suspected of money laundering because of the high debt ratio faced by the acquisition of Inter Milan. Experts interviewed by CCTV said: "the domestic debt ratio of these institutions is very high. They squander money borrowed from banks abroad, buy assets, and make mistakes in overseas investment, which increases the risk of domestic banks and domestic financial risks." give him a premium. A common feature of these overseas investments is that the ability to recover cash is not particularly strong, and the suspicion of money laundering cannot be ruled out. "

SUNING bought 70% of the shares of Inter Milan Club for 270 million euros, equivalent to 2.13 billion yuan. As for the CCTV report, SUNING thought it was a "misunderstanding". SUNING also said: "the purpose of investing in Inter Milan is, on the one hand, to learn more deeply from foreign experience, introduce advanced management technology and training system, and improve the level of domestic football; on the other hand, it is also relying on Inter Milan to enhance the international influence of the SUNING brand, effectively promote the overseas expansion of SUNING's retail network, and bring Chinese-made products overseas more efficiently."

in addition to buying Inter Milan, SUNING also spends a lot of money on overseas sports copyright purchases. on the morning of August 7, PPTV, controlled by SUNING, issued an official announcement, announcing that "PPTV Sports for the 2017-2018 season will historically gather all the rights of the five major leagues in Europe-something that Letv, once the most popular, did not do."

strong > copyright may be a killer for the content industry / strong >

strong > but taking competitive products as a lesson, there are other conditions for success! / strong >

as a well-known big enterprise, SUNING has a huge layout in the whole field of pan-culture and entertainment, but reading and entertainment is mainly concerned with the fields of sports and video. SUNING has invested a lot in these two fields, but copyright is not the only way to success if he wants to turn copyright into a "golden egg to make money."

take sports as an example, copyright is not necessarily a good business. Since PPTV spent 250 million euros (about 1.8 billion yuan) to win the exclusive all-media rights in La Liga China from 2015 to 2020, there are no special bright spots in the situation of paying members and the commercial expansion of La Liga in China. So on the one hand, the criticism of CCTV may come from the expansion of the impact under the regulatory storm. In addition, it is also related to the lack of commercialization and fine operation under the massive copyright of pptv.

many companies used to be optimistic about the game copyright business, but not many of them were able to do well. Letv Sports, Xinying Sports, Sina Sports, Tencent Sports, and so on, all bought the rights to related events at high prices, but not many of them were successful-- especially Letv Sports, who once held good cards in his hand. but the delay in being able to "hematopoiesis" makes it possible for it to become an abandoned child under the crisis of the group. For SUNING, whether it is the operation of the Inter Milan club or the copyright operation of so many events, SUNING did not give a beautiful answer in terms of entertainment-- it can be compared with Tencent's achievements in NBA, focusing on live video streaming, supplemented by media and social platforms, and gradually building a paid and free viewing system for its members, which has become one of the only successful examples of event copyright operation in recent years.

does SUNING want to support PPTV to start a copyright war again? Before the prosperity of homemade content, the competition of video websites was mainly the competition of copyright content, but the copyright war was fought for many years. Apart from the gradual withdrawal of small platforms, none of the "dads" withdrew from the competition. So in fact, through the copyright melee did not give video sites, to create a way out of homogenization, resources are still scattered among various platforms, it is more difficult to form users' loyalty to a certain platform. Moreover, as a result of the competition, the royalties are getting higher and higher, thus entering the strange circle of more and more expensive and more expensive to buy. In the long run, even if you hold your thighs, you will inevitably have the limit you can bear.

so in recent years, Youku, Tencent, iqiyi, Letv and Sohu have all made great efforts to make homemade content. Although the investment in copyrighted content is still large, on the whole, the proportion of homemade content is increasing. Executives of many video websites also said that on the basis of continuing to invest in copyrighted content, they should devote more efforts to homemade content; even Zhang Chaoyang is even more radical, to use all his strength to play self-control in the next few years.

in this context, the sky-high price of PPTV, which occupies an important position in SUNING's entertainment system, may not necessarily stimulate the fighting spirit of competitive products. after all, PPTV does not have a high position in the video website, so it is difficult to overtake with an IP play.

"one drink and one peck, there is a certain amount." Reading Yujun believes that in SUNING's overall strategy, the copyright budget may be huge, but buying a single drama at a price of nearly 1 billion is still an occasional event.

strong > is the bugle for launching a counterattack? Or does the daughter buy horse bones? / strong >

strong > PPTV and Ciwen, who are the beneficiaries of this sky-high price data? / strong >

I have heard of a way of playing with capital, saying that if you buy assets or companies, you must pay a high price! This will create a competitive barrier to other participants in the industry, and it will also form a mood expectation for sellers. The goods of the next door can buy 1 billion, and the goods of TA's are not bad, so why can't they sell them?

Investment industry or manufacturing industry may be in line with this logic, but for the film and television content industry, big dramas are not the scarcest resources. After all, there are big dramas every year, not necessarily which one. In recent years, the trend of investment in the entertainment content industry is not to bet on IP, but to invest in "production companies or teams"-such as Kongfu Pictures, noon Sunshine, etc., are the products of investment production teams.

mentioned earlier, although pptv holds a large amount of rights to events in the video industry, it does not establish enough advantages in competition and payment by members; in the field of movies and TV dramas, pptv also lags far behind the leading lineup in the markets of copyrighted content and homemade content, and pptv does not rank too high in the data given by various third-party organizations.

the fee of 800 million or 780 million yuan is quite high, whether for Ciwen or SUNING-Ciwen Media proposed in the contract, the online copyright fee for "Liangsheng" already accounted for 43.81% or 41.62% of the company's total revenue in 2016. No wonder the price of "Liangsheng" 15 million / episode has successfully broken the industry record. For SUNING, the price is equivalent to SUNING's one-year profit. Data show that SUNING's 2016 financial report shows a net profit of 704 million yuan.

so for PPTV, even if the ratings of this IP show catch up with that of "in the name of the people", it will not be easy to recover the cost. Since 2017, although IP TV series are still very popular, but the popularity is still "fever", although the number of broadcasts often exceed 10 billion, but for hundreds of millions of copyright fees, it is difficult to make a profit in the form of payment and advertising.

for Ciwen, selling 1 billion yuan for a drama is not entirely good news. Take Letv, once a big player of copyright, as an example, after the crisis broke out, the payback and account period of many film and television companies were affected. Ciwen Media has also been affected. According to media reports, Ciwen's accounts receivable to LeTV is 92.7 million yuan, and its provision for bad debts is 7.07 million yuan.

data show that iqiyi's operating cost and expenses in 2016 was 14 billion yuan. According to 800 million TV series, he only bought less than 20 dramas. According to the market share, the operating costs of Tencent Video and Youku Tudou should be similar to iqiyi. If PPTV can really buy 20 sky-high-priced dramas a year, can it return to the first camp? Read Entertainment Jun think it is impossible, after all, copyright can be bought at sky-high prices, but the overall operation and maintenance, for SUNING's entertainment layout, it is difficult to improve in the short term.

moreover, in terms of main business, SUNING has already compromised with Ali and made a share exchange of 14 billion yuan. Can SUNING do what Ali has not done in the field of entertainment?

but if you associate it more, you may have the same understanding of PPTV's move as you do, and you need to show your posture and attitude, which may be the same as Wanda's selling, which is based on the large layout of "buying horse bones with thousands of dollars."

Edit: mary