Wanda Theater Line plans to incorporate game assets. Wang Jianlin will restart the main business of film and television restructuring in due course

In the past six years, the compound growth rate has exceeded 30%. While industry giant Wanda Cinema is rapidly expanding the number of screens, management has seen the problem of "future movie box office revenue ceilings" and has begun to accelerate the layout of Wanda Cinema's three important strategies since its launch in 2015, namely, building a film life ecosystem.

According to Zeng Maojun, president of Wanda Cinema, non-box office revenue will be the main source of future profits for Wanda Cinema, including advertising media, derivatives, film integrated marketing, and even layout of the game industry. From the industry's perspective, this is also the purpose of Wanda's desire to rename the Wanda Theater Line to "Wanda Films".

According to Wanda Cinema's 2016 annual report, during the reporting period, the company achieved box office of 7.6 billion yuan, a year-on-year increase of 20.5%; non-box office revenue was 3.9 billion yuan, a year-on-year increase of more than 100%. Non-box office revenue accounted for 35% of operating income, an increase of 12 percentage points compared with 2015.

It can be seen that Wanda Cinema Line is gradually increasing its pursuit of non-box office business. Specifically, in 2016, the company established Wanda Media, acquired Shiguang, laid out the game industry, vigorously expanded its business in advertising media, film integrated marketing, online live streaming, derivatives, game industry and other fields, and continuously increased non-box office revenue.

In fact, increasing market share, creating a complete industrial chain, and establishing a film life ecosystem are the three important steps in the strategic layout of Wanda Cinema Line since its listing in 2015. In 2016, Wanda integrated the acquired companies, striving to enhance the synergy between the acquired companies and the company's existing businesses and bring benefits to Wanda theaters.

In this regard, Wanda Cinema believes that as the company's market share and business channels continue to expand, its competitive advantages are becoming increasingly obvious. A complete film ecological chain has begun to emerge, and the film life ecosystem with member + and IP+ as the core has also begun to take shape. In 2017, the company will continue to open up upstream and downstream businesses, improve the film ecosystem, and work towards the goal of building the company into a platform-based and eco-type entertainment company.

In order to comply with the implementation of the strategy of establishing a film ecosystem, Wang Jianlin has always intended to reorganize the Wanda Theater Line, including renaming the Wanda Theater Line to Wanda Films. According to the reporter, Wanda is currently integrating Wanda's cultural and film assets.

It is understood that Wanda Cultural Industry Group mainly includes film and television, sports, theme entertainment, children's entertainment and other sectors, of which the film and television sector is the core asset. At present, Wanda Cultural Group's film industries include Wanda Cinema Line, Wanda Film and Television, Wuzhou Publishing, American AMC, Legendary Pictures, Qingdao Oriental Film Capital, etc.

Regarding when the film and television company would restart injecting into Wanda Cinema, Wanda Cinema told reporters that Wanda Film and Television carried out a reorganization in 2016, but the reorganization was suspended due to policy changes and Legendary Pictures 'performance issues. However, Wanda's domestic film industry integration and the goal of achieving the development of the entire industry chain will not change, and the company will continue to promote restructuring at an appropriate time.

It is worth noting that according to Zeng Maojun, game assets may be injected into the Wanda Theater Platform in the future. According to Zeng Maojun, Wanda's goal is to rank third in the industry in the layout of the game industry. In terms of game distribution, Wanda will carry out combined online and offline promotion, and at the same time launch mergers and acquisitions integration. The target of the merger will be a profit-making company with profits of hundreds of millions of yuan.

Zeng Maojun said that in the long run, when planning mergers and acquisitions this year, it is planned to include game assets. Mutual Love Interactive is a wholly-owned subsidiary of Wanda Films. As long as Wanda Films is installed, it will obtain 10 mature IP game assets within one year.

Editor: Nancy