Wanhe Tianyi Chen Weihong: IP and originality are false propositions, and less than 10% of movies make money

You can learn from industrial production methods, but it is ultimately about humanity and dreams, and has great uncertainty. When you change the IP, you have no original ability, so I don't think this method means that it will be successful., there are also bottlenecks.

Our Wanhe Tianyi is a very young company. I want to talk about a theme today. What is the fundamental reason why IP is so popular? The first thing is that the entire China economy is not very prosperous, stocks are not good, and real estate has also changed from a golden age to a platinum age.

There are also many problems in the film industry. Less than 10% of movies make money, and 90% are losing money. What should we do? They hope to learn from good industrial production methods and do a better job in the film industry. Everyone mentioned IP. IP may be an original work or an online drama. Everyone may like its characters, stories and structure.

I thought for myself. I think this business model will definitely produce very successful works. We have also seen that recently,"The Quest for the Dragon", this business model will encounter its bottleneck in the future, because when you pursue limited resources with a lot of capital, the IP on the market is limited, and good IP and good literary works are very limited. There are only a few good production teams in China. If everyone comes to do it, the price may be very high.

In this case, based on the price increase, the risk will be quite high. If the movie is invested 30 million yuan, it may take 100 million yuan to recover the cost. If it is invested 300 million yuan, it may take 1 billion yuan to recover. Few movies can reach 1 billion yuan. If you make a movie of 300 million yuan, the IP cycle will be very long. Even if it has 2 billion yuan in box office, the content side will be 600 million yuan. 100% return, it may take 3 to 4 years. The annual return is just over 30%.

I have always felt that movies are an art, and you can learn from industrial production methods, but it is ultimately about humanity and dreams, and has great uncertainty. When you change the IP, you have no original ability, so I think This approach does not mean that it will be successful, but it also has bottlenecks.

So we see that there is an eight-eight principle in Hollywood, the second famous economic principle. In most industries, only 20% of companies are making money, and 80% are losing money. The same is true in Hollywood movies. The real movie is 20%, and 80% are losing money, and the same is true for American TV dramas. Therefore, it may be very difficult for China films to break through the 28 - 28 principle. China may end up on 37 and 46, but it will be difficult to break through 55. This business model depends on the operating ability of operating capital and the originality of his IP adaptations. Originality is also needed in this process.

Next, I want to talk about Wanhe Tianyi's business model. So far, we have been doing original work. We feel that the originality of IP is actually a false proposition, because no matter what you do, the source behind it is talent, that is, Art creates talents. This is the key. We have to go back to the source, the talents created by art. We will consider buying IP at the right opportunity and at the right time, but we still have to return to the originality itself.

For example, if we want to do suspense themes, we will find the author of "Dark One". We don't buy IP, but the author, who will provide good themes. Our Wanhe Tianyi is a very young startup company. Our company can imagine us as a huge incubator. Our company has more than 400 employees, 90% are born in the 1990s, and more than 100 are directors, screenwriters, and original TV series talents. We don't guess what the post-90s generation thinks. It's hard for us to understand them and know their preferences. We just do what the post-90s generation likes.

The second is whether there will be a market? We must emphasize the market, because only if you don't lose money when making the movie itself can you have sustainability and only then can it last. Whether it's making movies or online dramas, what we pursue is not to lose money. We ourselves don't make judgments about content because we know that only the post-90s generation know what they want.

We cooperate with many platforms, and each platform is our good partners. In the past, because we were a loser company, we only had 20,000 RMB when we were doing the first issue of "Unexpectedly". We really didn't have any money, and we didn't use any of them from a professional class. (Introduce the background of the crew members who never expected). "Unexpectedly" has 2.1 billion views, tens of millions of fans, 430 million topic discussions, more than 20 awards, more than 100 creative talents, and more than 150 offline activities. This time we invested in a movie, and we also adhere to this principle of not losing money.

We are not pursuing a phenomenal box office hit, we are pursuing a solid step by step. Everyone has high expectations for us and thinks that we should make as much as hundreds of millions. We are very calm in our mind, and we finally achieved a box office of more than 300 million. We also feel very satisfied and the return on capital is very good. In the process, we have trained our team, know how to make movies, and learned a lot. After the big movie was completed, we advanced to the first grade of primary school. There is still a long way to go before college. Our directors and screenwriters are very young, and the future belongs to them.

I remember when I was in college, we liked Haizi, and there were no more than 10,000 people across the country who liked him. More than ten years later, his poems entered middle school textbooks. If it was something that young people liked, even if he was at the beginning, he would definitely become mainstream over time. A lot of talk just now about the impetuousness of capital. I think there are two types of capital. We must choose capital that can develop in the long term. With our business model of Wanhe Tianyi, we don't burn money. We make money when we make dramas and cultivate fans. We mainly raise funds for expansion.

We have met with more than a hundred investors, and finally chose two capital companies with a long-term vision. What we promised is that we can have a group of young people with artistic dreams come to us. Some of them have professional backgrounds and others are not. We are very patient. We hope that in 10 years, a group of them will become one of the best directors, screenwriters and actors in China films. This is our dream.

After our dreams and their dreams are realized, we naturally earn a lot of things. We find that there are long periods of loneliness and tempering behind all the works. We have the patience to cultivate them and wait for them to grow.

In this movie, we visited a hundred cities. This was the first time to reach a hundred cities roadshow. We wanted to meet our audience and meet our fans. We saw our fans everywhere. Very enthusiastic, but we have to learn how to get our movies out of our inherent fan circle. Our movie this time is very popular in first-tier and second-tier cities, but the breakthroughs in third-and fourth-tier cities are not enough. This is also what we will learn in the future.

We try to connect online dramas and movies. I saw in Hollywood that Hollywood film barriers are very deep. In China, because the film industry has experienced great differentiation and development, it has given us unprecedented opportunities. We try to integrate the two. The integration of the two is not because we create one or two stars, one or two IPs, or one or two movies. We hope to do a lot. After getting through, film and television products, games, and book publishing can all enter this IP.

Finally, I would like to emphasize that we Wanhe Tianyi are an incubator. We are the dream of incubating young people. I also have a dream that 10 years later, China's films will be able to go global. Now it is an imagination. Three or four years ago, we could not imagine that China films could enter the U.S. market. Now the U.S. market is full of China films. This is a very good era. We must be eagles on the wind and realize our dreams.

Editor: yvonne