Close the CEO of Film Industry Co., Ltd.: Build an Asian entertainment empire and become the sixth largest film company in China

"There are two types of people who are particularly popular when entering the film and television industry. One is those who used to engage in finance, and the other is those who used to engage in the Internet. We are all building our own platforms. If the current Big Five will not die, everyone is competing for who will become the real sixth largest film company in the future. We have both the ability to predict the market individually and the ability to grasp the overall profit and loss of the platform." Shangna said.

Original title: Shangna, the promoter of "Diaosi Men", has returned. How do China entertainment industry practitioners make optimal choices?

Her departure, persistence and transformation represent the path of power transfer in China's entertainment industry and the optimal choices of practitioners therein.

Compared with video content entrepreneurs and transformers who are keen on wandering in industry forums, gorgeous award ceremonies and media headlines, Shang Na, who was once the editor-in-chief of Sohu Entertainment Channel and Sohu Video Content, seems much more low-key. After resigning from Sohu Video on December 18, 2014, Shangna stayed away from these public occasions.

This has something to do with her character. "When I was in Sohu, I had never walked out of Sohu Building, nor had I been to any other Internet company. After starting a business, I went to various places to discuss cooperation with others. Only then did I realize that Youku was like this, iQiyi was like this, and Sina was like this. I had never been there before." In an exclusive interview with reporters, Shang Na said so.

On January 12, 2016, she once again moved into the spotlight. Shangna's CEO, Kuai Pictures, announced for the first time 15 film plans for 2016, including co-productions between China and South Korea, films, TV and other production types, covering themes such as suspense, comedy, time travel, science fiction, and family fun. At the same time, Hyo Jong-min, leader of Closer Pictures, announced a strategic cooperation with South Korean entertainment company iHQ Group, announcing that "the two sides will carry out close cooperation in capital, jointly shoot films, create Asian superstars, and jointly build an Asian entertainment empire."

For many people, Close Pictures is still a relatively unfamiliar term. In fact, the Kuai Entertainment Group, to which Kuai Pictures, Kuai Sports and Kuai Music belong, is a Hong Kong listed company with capital support from Gome and CITIC. Data shows that before it changed its name, it was called "China Star Cultural Industry" and was originally affiliated to China Star Group owned by Xiang Huaqiang. In August 2015, CITIC invested HK$628.5 million in Closer Online Entertainment. Jiaxuan Group, invested by Gome and CITIC, held approximately 47.10% of the shares in Closer Online Entertainment, and CITIC held 10.93%.

In the past, Shangna has gone from a video website executive to a video content entrepreneur, and finally to the CEO position of a new film company. She has been trying to keep up with the golden decade of the entertainment industry on the track with the lowest time cost. Her departure, persistence and transformation represent the path of power transfer in China's entertainment industry and the optimal choice for practitioners therein.

"There are two types of people who are particularly popular when entering the film and television industry. One is those who used to engage in finance, and the other is those who used to engage in the Internet. We are all building our own platforms. If the current Big Five will not die, everyone is competing for who will become the real sixth largest film company in the future. We have both the ability to predict the market individually and the ability to grasp the overall profit and loss of the platform." Shangna said.

The first "content escape" occurred

"at that time, I was the first person to come out to do Internet content."

Although it was almost the first video website executive to leave the company to be responsible for self-made content, most of all the products that have passed the market test belong to Shangna's Sohu era. "I am very grateful to Sohu, which is a special place to cultivate people. When you are at the middle level, you have considerable power. If you are willing to assume this responsibility and obligation, you will have this power."

Among them, the most famous is "Pancake Man", which earned 1.16 billion yuan in box office in China's film market in 2015, as well as its series of early IP products "Dapeng De Ba De" and "Diao Si Men." In this series, Sohu has simultaneously completed several processes of "star-turning" ordinary Internet grassroots, and "IP-turning" and "film-turning" Internet video products. At the same time, the super online drama "Hurry That Year" has also begun to spawn theater movies, and the Korean variety show "Hidden But Great" has also achieved relatively successful localization operations in Sohu Video.

Among these projects, Sohu Video not only serves as a broadcast platform, but also has begun to enter the production field, having the opportunity to cultivate its own production team and even high-box-office directors like Dapeng. "Pancake Man" is a company that started as a video website. By incubating the content on the video website into a content brand with particularly public influence and then turning it into a movie, this matter has a great imagination for the capital market and the video industry. Space is far greater than just making a movie." Shangna said.

In her view, the success of these video products heralds a replicable path that gradually explodes from low-level to high-level. It also means that video websites at this time are moving towards integration with the in-depth traditional production industry.

"The so-called production and broadcasting should have been started long ago at the production level, and the timing is also right. In the field of production, there are no high or low, nor are there any shortcuts to speak of. The Internet started as a platform team and gradually became a team with platform and production capabilities. We trained ourselves to be able to make both movies and super online dramas. I feel that now that we are sure about the traditional industry, we should quickly enter this field."

In fact, in the online video industry from 2014 to 2015, attempts have been made to have certain content production capabilities through external cooperation, self-made incubation, and the establishment of film companies. However, due to the strategic focus of decision makers and market competition. The objective environment and the ability to integrate resources are different, video websites still react more to the content production industry in terms of marketing, publicity and other superficial aspects. In contrast, the production of online content is more decentralized and platform based, and a large number of creative and production teams are vertically distributed.

Capital growth for portal video sites seems to be starting to approach the ceiling. The listings of players such as iQiyi and Sohu Video have been blocked, structural changes in the capital stock are more occurring within the industry, and the incentive problem of maintaining the stability of the senior management team cannot be effectively solved. On the contrary, content producers have begun to be favored by capital. For example, Luo Ji Thought's Round B valuation is 1.32 billion yuan, and Wanhe Tianyi's Round B valuation is over 100 million US dollars.

Video website executives with dual genes of the Internet and content are no longer satisfied with this current situation and trend. The "large-scale exodus of content talents" has become inevitable in the industry. They need more means, resources and space. In 2015, after Shangna left, Ma Dong, chief content officer of iQiyi, and Lu Fanxi, vice president of Youku Tudou Group, also left video websites and chose to enter the field of content entrepreneurship. "I have completed three transformations within Sohu, from media to operating platforms to content production. I feel that there is an opportunity and I have the ability to do this." Shangna said.

Spontaneous "film industrialization"

"I want to use my theoretical method to make everything conform to its natural laws and then combine them. I need an ecological layout for the entertainment industry."

According to Shanna's summary, whether it is the "Diossi Men" and "Hurry That Year" series of products, or the introduction of "Hidden and Great" and the exclusive broadcast of the second season of "The Voice of China", the key to her success in Sohu Video lies in relying on experience. Judgment, she is "half a step ahead of the market."

Shangna has been thinking about how to industrialize her "small half-step" experience in the film market. In a sense, the progress of China's film industry has bid farewell to relying on the improvement of filmmakers 'personal aesthetics and film capabilities, but requires an overall industrialization breakthrough in the film industry. From the perspective of process, more refined, safe and standardized industrial operations should be carried out in terms of the overall process, so as to reduce the risk of a single piece and improve the commercialization; from the perspective of products, it is necessary to produce high-quality films that match the market value of the ultra-high box office. In the sense of industrialization, high-quality films ensure that phenomenal blockbusters can fully explode.

Just as the Chen Guofu and Wu 'ershan combination demonstrated the importance of film producers in the industrial process, Ruyi Pictures used capital means to strengthen its ability and position in future special effects blockbusters. This means that China filmmakers have shown a clear spontaneous trend in terms of industrialization breakthroughs-increasing the investment success rate of each film, rather than simply producing the scale of output-and also providing opportunities for new film companies to enter the front lines.

Shanna is also trying her own way. Her "industrialization" foundation and blueprint lie in the meticulous contracts used in Hollywood, because every contract represents a sense of risk control. In March 2015, Shangna founded a business in a well-lit loft in Wangjing and established "Youth" Film and Television Entertainment Culture Co., Ltd. One of the most common words she said to the team was,"Before you find a suitable legal expert, you must understand the law and money, and use the boss's ideas to manage yourself in this position, because everyone's current position may affect the overall situation of this matter."

Shangna cares very much about her "time cost" and "time window", which also makes her entrepreneurship bound to merge into a large company rather than develop absolutely independently. "What I want to do now is the best opportunity in the entertainment industry in China. I am thinking about how to seize my own time, place and people."

In fact, after leaving Sohu, Shangna quickly felt the surge of capital. Jingwei Capital became the first investor to intentionally pay. Sequoia Capital brought an investment contract when it first met Shangna, and almost all film companies and video websites also offered very generous and space conditions for cooperation. "No matter who I accept, I need a period of time to let my company go slowly, and I think time is the biggest cost."

In theory, Xu Zhongmin is not the one with the best chance of winning from seeking cooperation. In 1994, during the most popular year of popular music in mainland China, he founded Jingwen Records, which owned famous pop singers such as Cui Jian, Wang Feng, Han Hong, Na Ying, Zero, Tang Dynasty, and Guo Feng. However, Xu Zhongmin is no longer the core boss in today's entertainment industry. Even in August 2015, when he came into contact with Shangna, his Kuai Films had just been established.

Shangna finally joined the company, not only because the contract proposed by Xu Zhongmin was "firm and quick", but also because of his other identity-a "Chaoshan businessman." According to relevant news, Xu Zhongmin is good at capital operation, has experienced the baptism and adventure of the capital market, and is "active in the field of cultural investment and has made great achievements." This time, he wants to position Close Pictures as an Internet film and television group,"an innovative film and television company that engages in investment, production, distribution, marketing and derivative businesses such as movies, TV series, programs, and online content with Internet thinking."

"Connecting with me is the most efficient way to design my life." Shanna said,"I will do business, you will do business." The final form of cooperation between the two parties is: Close Pictures will invest in the acquisition and control of "Youth Times", and Shangna will serve as CEO of Close Pictures as a professional manager, while still being able to lead the future development of "Youth Times". The two companies maintain connections in operations and settlement.

The 15 new film plans that Close Pictures has just announced were compiled and decided within three months. Shanna said that the primary goal is to keep each project safe and controllable-this is the least bad option, while increasing the probability of phenomenal blockbusters appearing.

"Seize the industry's industrial codes, find methods to produce safe production, try to create some favorable conditions at the right time, place and people, and take another half step forward." In her plan, the rule of risk control will be implemented by Close Pictures, striving to coordinate profits and losses through content risk control for each film. "In the early stage, make the entire situation as controllable as possible. When commercial customers are willing to do business implants, good resources will gather here. Real header content has all the best resources and is the safest."

Shangna is confident in herself. She expects that in two years, Close Pictures will occupy its place in the film landscape. "Actually, I never take risks. I am a cautious person. This half step may be a risk to others, but in my opinion, this half step is a win."

Editor: kong