Behind the 23-fold increase in annual performance, how should Beijing Culture build a big entertainment industry model?

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"To build the entire industry chain, it is necessary to start from the source of IP. Beijing Culture has established close business cooperation with publishing houses, Internet companies, and authors. We buy copyright from the source or create an IP. We work with screenwriters, directors, actors, post-editing, music, special effects and other professional artists to produce works in the form of movies, TV series, Internet University, variety shows, etc., and finally through an effective and professional publicity team, Put the work in the three major flat...

according to the recent announcement of Beijing Culture, the net profit attributed to shareholders of listed companies from January to December 2016 is expected to be 520 million to 530 million yuan, an increase of 2349.99% to 2397.10% over the same period last year. How will Beijing culture develop next? Song GE, chairman of Beijing Culture, delivered a keynote speech entitled "one horizontal and one vertical, forming a large entertainment industry model" at the investor exchange meeting on the 22nd, which systematically and comprehensively expounded the strategic layout of Beijing culture.

Beijing Culture, which frequently attracts market attention with its "guaranteed release", has recently released its beautiful 2016 performance forecast.

according to the recent announcement of Beijing Culture, the company expects the net profit attributed to shareholders of listed companies from 520 million to 530 million yuan from January to December 2016, an increase of 2349.99% to 2397.10% over the same period last year.

the announcement explained that behind the huge increase in performance, on the one hand, the company completed the merger and acquisition of the film and television culture sector, and the consolidated statement increased Century Partners and Zhejiang Xinghe, while the company's film and television media industry and other businesses continued to grow. the net profit of the main business is about 185 million yuan to 195 million yuan. On the other hand, during the reporting period, the company successively disposed of assets such as Lingshan Scenic spot and Longquan Hotel, with a non-recurrent profit and loss of about 335 million yuan.

this is the second complete fiscal year since Beijing Culture changed its name from Beijing tourism in October 2014, and it is also the first year for Beijing Culture to comprehensively transform its film and television culture. Since 2013, the company has transformed its film and television culture. First of all, it has strongly cut into the film and television industry by acquiring 100% of the shares now renamed as Ferris wheel culture. In the first half of this year, it completed the integration of Century Partners and Xinghe cultural brokers, and began to develop into the whole industry chain, such as films, variety shows, TV dramas, artists and so on.

in this process, Beijing Culture has built an entertainment executive "Dream team". Song GE, founder of Ferris wheel culture, is also the former general manager of Wanda Film and Television, and currently serves as chairman of Beijing Culture. Xia Chenan, former deputy editor of Zhejiang Radio and Television Group and director of Zhejiang Satellite TV, is now president of the company. In addition, there are many senior figures in the film and television industry, such as film and television investor Lou Xiaoxi, gold medal producer du Yang, gold medal broker Wang Jinghua and so on.

behind such a luxurious executive lineup, how will Beijing culture develop next? Song GE, chairman of Beijing Culture, delivered a keynote speech entitled "one horizontal and one vertical, forming a large entertainment industry model" at the investor exchange meeting on the 22nd, which systematically and comprehensively expounded the strategic layout of Beijing culture.

1 horizontal: how does the whole industry chain strategy fall to the ground?

as early as the beginning of this year, Song GE said that in 2016, the company would accelerate the integration of personnel and business of three companies (Ferris wheel, century partner, Xinghe Culture) and four major sections (film, TV series, variety shows, artist agents) to create a full-industry chain platform for film and television entertainment.

in fact, with the merger of Century Partners and Zhejiang Xinghe in the first half of this year, this task has become more prominent. The coordination of multiple plates and the maximization of benefits have become an inevitable problem.

so what is the concept of the whole industry chain mentioned by Song GE?

"it is necessary to start the whole industry chain from the source of IP. Beijing Culture has established close business cooperation with publishing houses, Internet companies and authors. We buy the copyright from the source or create an IP. Through cooperation with a series of professional artists such as screenwriters, directors, actors, post-editing, music, special effects, etc., we produce the works in the form of films, TV dramas, NetUniversity, variety shows, etc. Finally, through an effective and professional publicity team, the works are released on three major platforms-cinemas, television stations and video websites, resulting in stable revenue and traffic. After the flow is generated, we will continue to do the extension and development of industrialization in the later stage, including similar theme parks, authorized derivative products, development of games, etc., to get the long tail effect. " Song GE mentioned in his speech.

Song GE even mentioned that in order to achieve the development of the whole industry chain, there must be two ways to get through, one is the opening of IP, the second is the opening of talents.

take Fengshen, a blockbuster project being prepared by Beijing Culture, for example, this project will be directed by famous director Wu Ershan, with famous screenwriters and producers participating in it. Filming is expected to begin in 2018, with three consecutive films planned. Previously, in the world film history, only the Lord of the Rings Trilogy was in the form of three episodes. The film has a huge investment and is expected to become a benchmark for Chinese magic films. For this project, the company plans to do a variety show (tentatively named "the birth of actors") in a first-line satellite TV next year, and then cooperate with Wang Jinghua's artist brokerage section to continue to create several leading actors, so that the project of "Feng Shen" can be opened up in all aspects within Beijing culture.

in the promotion of talents, in just two years, Beijing Culture has formed a committee similar to the six-member management committee. According to reports, the six leaders of the company's management committee have a regular meeting every week and a closed-door strategy meeting for two to three days every quarter to discuss the development of the company. After breaking up, the personnel of Ferris wheel, century partner and Xinghe culture are integrated into various positions of Beijing culture, breaking the boundaries of the original companies and creating new core competitiveness and profit growth points in an endogenous way.

at present, Beijing Culture has gathered the resources of directors, screenwriters and artists:

1. Film director: director Chen Guofu is now the company's art consultant, Wuershan, Ding Sheng, Guo Fan, and Xu Haofeng;

2, screenwriter: established a cooperative relationship with Liu Zhenyun and Yan Geling. Xing Aina, screenwriter of lost in Thailand and exuberant Heart, is also a contracted screenwriter.

3. TV drama director: Zhang Li, who directed "the right way in the World is the vicissitudes of Life", is now filming "Wu Zhi Qiankun"; Guo Jingyu, director of "Brave Heart";

4. Actors: Hu Jun, Lu Yi, Bai Baihe, signed by Xinghe Culture, and so on.

through the connection between IP and talents, Beijing Culture will build a platform for directors, screenwriters, actors and other partners to obtain financial support, business support, and even life care on this platform, so that they can create excellent works, thus forming a stable content production team.

in addition, Song GE also mentioned two new business plans for the whole industry chain: exploring the possibility of building its own film and television base, and starting from 2018, the company plans to promote the development of post-derivative products, including tourism and cultural entity operation, game licensing and so on.

2 Vertical: will go deep into the layout platform in 2019

A simple review shows that the current layout of Beijing culture is very solid, with its focus still on content, while the form is dominated by movies, TV dramas and variety shows.

in 2016, Beijing Culture announced the landing of variety projects such as "come on Beautiful Girl", "Flower ripple Dream Factory" and "extreme Challenge". As well as investment in many films, including "Railway Flying Tiger", "I am not Pan Jinlian", "Wolf Warriors 2" and so on.

Song GE also said in his speech that the so-called "one vertical" refers to the three major platforms:

1, cinemas. At present, the number of screens in the country has reached 40917, surpassing the United States and ranking first in the world.

2, TV stations, including the five major satellite TV stations: Hunan, Zhejiang, Jiangsu, Dongfang and Beijing, will not be ruled out in the future.

3, video websites, including three major video websites, as well as important video websites such as Letv and Sohu, emerging professional vertical video websites and short video websites, etc.

compared with listed film and television companies such as Huayi Brothers, Huatze Film and Television, Tangde Film and Television, although Beijing Culture is high on the film guarantee, it has not yet been involved in cinema investment.

in the cooperation of TV dramas and variety shows, Beijing Culture has done more cooperation with TV stations before. At the investor exchange meeting on the 22nd, Beijing Culture also said that it had set up a new media division and purchased some large IP. At present, it has stocked up online drama and online film projects, and will comply with the market trend in the network ensemble field layout.

3 unavoidable guaranteed release: there are ways to control risks

since the successful release of "Heart Flowers" in 2014, a series of guaranteed actions in Beijing culture have always attracted great attention.

on Aug. 5 this year, Beijing Culture announced again that it would jointly assemble Wolf Warriors 2, the 800m-guaranteed film produced by Wu Jing, less than two months after Wolf Warriors 2 began filming.

in December, Beijing Culture announced that it would pay 74.73 million yuan to Kongfu Pictures as a guarantee of 500 million yuan at the film's total box office.

at the investor exchange meeting on the 22nd, when asked that from this year's situation, many films' guarantees were actually lower than expected, Beijing Culture said that with the development of the film industry, more and more guaranteed distributions appeared. The company's risk control for guaranteed issuance mainly has the following measures: 1. First of all, based on the company's experience and resources in this industry. The company fully evaluates and predicts the films that are prepared to guarantee the bottom.

2, the company continues to subcontract the film in other ways, so as to control the risk;

3, through its own distribution and production ability, the company is deeply involved in the whole process of film development and release, and more from the market point of view to strengthen the production process of the film itself, and further strengthen the fundamentals of the film itself, so as to reduce the risk.

it is worth noting that, in fact, many films produced by cultural investment in Beijing also choose other companies to protect the bottom, such as "I am not Pan Jinlian", which has just been released, and "Railway Flying Tiger", which is being released, and so on.

Beijing Culture said that when we choose the guarantee side, we do not simply look at who gives the highest price, but from the standpoint of maximizing the final results of the film, choose a good partner and join hands with each other. finally sell the movie well.

Edit: yvette