Wang Yiyang of One-One Film and Television Fund: Dialectical view of layman funds and investment in films

China's film market is currently maintaining a strong growth trend and has become the world's second largest film market. The explosion of China's film industry in the past two years has also triggered many funds from outside the film industry to enter the market. The development of the American film industry and its mature capital operation are worth learning from by China practitioners. "The film + finance model must be the capital operation model of China films for a long time to come."

In the fourth quarter of 2015, the 11th China-US Film Festival, the "China-US Film Talent Exchange Program" jointly sponsored by the American Film Association and the State Administration of Press, Publication, Radio, Film and Television, and the first Asian Film Festival were held in the United States.

Recently, Wang Yiyang, co-organizer of the Asian Film Festival and manager of One Film and Television Fund, said in an exclusive interview with reporters that China's film market is currently maintaining a strong growth trend and has become the world's second largest film market. The explosion of China's film industry in the past two years has also prompted China films to start going overseas, and has also triggered many funds from outside the film industry to enter the market.

She believes that the development of the American film industry is inseparable from its mature capital operation, and these are places worth learning from by China practitioners. "The film + finance model must be the capital operation model of China films for a long time to come."

It is reported that Yiyi Film and Television Fund is affiliated to Yiyi Group and is currently one of the longest existing film and television funds in China. It has currently participated in the investment of film works such as "The Master of the Generation","1942", and "Private Customization". The popular TV series "Kara Lovers" in 2015 is also one of the works invested by OneOne Film and Television Fund.

Film investment requires professional

reporters: What do you think of the phenomenon of amateur funds following film investment?

Wang Yiyang: I personally think this issue should be viewed from both positive and negative aspects. On the one hand, more and more non-industry companies are participating in the film industry, which illustrates the huge influence and infinite market potential of the film industry; on the other hand, many non-industry capitals often lack a deep understanding of the film industry, or only see the superficial splendor of the film industry, ignore the professionalism of the film industry, and cannot use the right funds for the right works. Finally, they exchange big investments, big stars, and big directors for inferior works with low box office and poor reputation.

Nowadays, it has become a trend in China to invest in films with non-industry capital, but the prerequisite is that the professionalism and sensitivity of investment need be strengthened, and that we need to invest in films with a strategic perspective. Only then can we truly promote the film investment industry towards a healthy track of sustainable development.

Reporter: What is your investment logic in movies?

Wang Yiyang: On the premise of ensuring that investors obtain stable returns, reasonably match funds and appropriately utilize the leverage effect of financial capital, rapidly expand capital scale and asset appreciation, and invest in and produce more excellent film and television works. In addition, professional sensitivity and strategic vision are needed to invest in films. This specifically refers to high-quality content, financialization of capital and internationalization of cooperation.

The first is the quality of content. Statistics show that from 2005 to 2014, the average annual compound growth rate of my country's total film production was close to 6%, and the average annual compound growth rate of the output of feature films exceeded 8%. However, among these films,"box office exceeded 100 million." Only a few have a good reputation ", and those with" mediocre response and little interest "are everywhere. Therefore, as a professional film investment and financing company, we must have the vision to identify the market value of film works.

The second is capital financialization. Film and capital are inseparable. Movies need capital to support them, and capital must rely on movies to add value.

The other is the internationalization of cooperation. If capital financialization can protect China films from going global, then cooperation internationalization is the best way to reach the other side.

A new model of "film + finance"

Reporter: How can China learn from the experience of the American film market?

Wang Yiyang: The United States has a lot of experience worth learning from, such as the investment and financing model of film production.

Since 2004, when Wall Street financial giants in the United States began to favor the film investment and financing industry, the American film market has formed a sound investment and financing system and a multi-level investment system: copyright pledge bank loans, private equity fund financing, securities market financing, special film funds, film pre-sale financing, other financing methods and other investment and financing methods have strongly guaranteed the source of funds for film production; In terms of investment and financing entities, the initial investment and financing of a single entertainment group has expanded to today's investment and financing of multiple groups or non-industry enterprises, and the entities have become increasingly diversified; in terms of laws and regulations, the sound legal system has effectively curbed the potential risks of film investment and financing, and protected the healthy development of the film market.

In comparison, China's film investment and financing is still at the stage of "small lotus talent showing its tip." On the one hand, we must learn from the successful models and cases of the American film market, and on the other hand, we must also choose according to our own national conditions. Draw the essence with conditions. I personally believe that in the current era of Internet finance, the crowdfunding model may be a new innovation and new experience for investment and financing in the future of China film market. The key to its formation lies in the rigorous and professional management team, highly sensitive film and television investment vision, and the effective connection of the three.

Reporter: In what direction will the cooperation between film and financial capital in China develop?

Wang Yiyang: Film is considered to be one of the most valuable fields for investment at present. In the past five years, China films have maintained an average annual box office growth rate of 30%. As a new economic form, the film culture industry has a very strong momentum of rise.

However, when financial capital with a sensitive sense of smell enters the film industry, on the one hand, capital will concentrate the superior resources of the industry and promote the industry's scale to grow faster; on the other hand, the intervention of capital will bring new rules of the game, and the industry will reshuffle. inevitable.

However, the film culture industry is a content industry, and the core is creativity. Film products and ideas need to be accumulated for a long time in the early stage, and there must be active and effective channels for promotion in the later stage. Capital needs to meet the planning period of the film cultural industry in the early stage of the outbreak, rather than killing the goose to lay the golden egg, just to simply meet the interest needs of capital. Film and capital should coexist and develop healthily. The role of financial capital in the future on the pattern of China's film and television industry will inevitably be "polarized": giants lead the development of the industry, while small companies will continue to maintain technological advantages in segmented areas.

Editor: kong