What is the impact of the film industry's tiered debt-sharing agreement on the film and television production sector

< strong > Cascade account is still an individual case < / strong >

industry insiders pointed out that the failure of the two sides to better coordinate the relationship of interests is the direct cause of this sharing storm. Cascade sharing can promote more resources in the film and television industry to tilt towards blockbusters, and small and medium-sized films will face pressure.

take the two cascade accounts reached at present as an example. "1942" is divided in a cascade proportion according to the final box office. The higher the box office, the higher the proportion allocated to the producers and distributors, which can reduce the risk of the production side's investment in blockbusters and encourage them to make better blockbusters at the box office. Small and medium-sized films may be further marginalized. On the other hand, "the Feast of the King" is distributed in a cascade proportion according to the release time, and the longer the release time, the higher the proportion allocated to the cinema line, which can encourage the cinema line to increase production and marketing support in order to earn more income in the later stage of screening. it will also squeeze the development space of other small and medium-sized films.

judging from the performance of individual stocks, the share price of Huayi Brothers has fluctuated sharply recently. The share price of Huayi Brothers fell for three consecutive trading days after the premiere of 1942, with the stock falling to its limit on the second trading day and rebounding on the next two trading days. As of December 5, the share price closed at 12.61 yuan, an increase of 2.52%. Galaxy Securities analyst Xu Yaowen pointed out in an interview with our reporter: & ldquo; from the film industry itself, belongs to the volatility, the overall profit margin of the industry in general. Once the box office performance of a blockbuster is poor, the company's revenue will be greatly affected, which can easily lead to fluctuations in the company's share price. & rdquo;

Xu Yaowen believes: & ldquo; is still an individual case for the time being and has not spread to the whole industry, so its impact on the film and television plate is not very obvious. But it opens a gap, which can enlighten the negotiation of interests between the producer and the cinema line in the future. & rdquo;

< strong > the prospect of the plate is worth looking forward to < / strong >

there are different views on the trend of the film and television production sector in the later period. In the first three quarters of this year, the growth rate of operating income of listed film and television companies, such as Huayi Brothers, Light Media, Hualubina, and New Culture, increased from the first half of this year to 47.06%, 29.45%, 35.46% and 23.23%, respectively. Although the performance is eye-catching, the whole sector has shown a volatile trend this year, reflecting the hesitation of the market.

Qilu Securities recently released a research report saying that the film and television industry cascade accounting model has emerged, which is good for front-line film producers and distributors, so it is optimistic about Huayi Brothers, Boehner Pictures, Light Media and other companies during the Lunar New year holiday. Hongyuan Securities released Huayi Brothers individual Stock Research report, saying that under the new ldquo; film rules, producers and cinemas win-win, benefiting Huayi Brothers in terms of direct cash incentives and increasing the enthusiasm of cinemas to show domestic films. Huayi Brothers still has long-term investment value, maintaining & lsquo; Buy & rsquo; rating & rdquo;.

but there are some different opinions. According to the research report of Gaohua Securities, after 2013, the growth rate of domestic film box office will gradually decline to less than 30%. Coupled with the impact of imported films, domestic film box office growth may be weak, thus affecting the market expectations of the industry.

for a long time, the dispute of sharing accounts between cinema chains and producers has never stopped. Due to the high degree of concentration of cinema chains, the top 10 mainstream cinema chains now occupy more than half of the national market. On the other hand, the producers and distributors are more scattered and the internal competition is fierce.

Xu Yaowen believes: & ldquo; for producers and cinema lines, cascading accounts may be a temporary compromise. How to maximize box office revenue is the goal of both sides. This two-percentage-point sharing storm is obviously not the end. & rdquo;

at the policy level, on November 22, the State Administration of Special funds for the Development of the Film Industry issued four support notices. Producers and cinemas were subsidized in the form of special funds returned and rewarded according to the proportion of the box office. On November 30, the State Administration of Radio, Film and Television issued the guidance on promoting the coordinated Development of production, Distribution and projection, proposing that cinemas should not share more than 50% of the first round of films in principle, and at the same time, it is also proposed that the annual real estate rent of cinemas should not exceed 15% of the annual box office in principle.

the introduction of these measures, on the one hand, helps to improve the enthusiasm of producers and protect their interests, on the other hand, it also reduces the pressure on the operation of cinemas. In the long run, it will be beneficial to the development of the whole film and television industry.