Market bubbles hinder industrial development and create high-quality works is the key to the long-term development of the film industry

In fact, in the film industry, capital is a double-edged sword and one of the necessary elements to promote industrial development. However, too much overheated capital will also make practitioners and investors lose, creating a market bubble and hindering industrial development. As the film industry, the key to long-term development is inseparable from whether it creates high-quality content works. The current slowdown in the growth rate of the film industry also represents a lack of high-quality products. At this time, capital needs to be used reasonably and effectively to create high-quality products.

Original title: Why is the film investment so high that it has nine losses?

Nowadays, the film market is no longer a secret in the industry, but is gaining more and more recognition and resonance. However, although only 10% can achieve profit, investors 'enthusiasm for movies is still difficult to cool down, and a steady stream of capital continues to be delivered to the film market. Through observation, it is found that the enthusiasm of some capitals for the film market is not an investment behavior on the surface, but is also driven by other aspects.

Follow the trend to make quick money.

The reality that the box office of movies only increased by 3.73% year-on-year last year has put a sharp brake on the film market, which has been developing at a high speed for many years. It has also given relevant practitioners a head-on blow to face up to the continuous influx of hot money. The market bubble that is difficult to ignore. Judging from box office performance this year, the national box office in January totaled 4.85 billion yuan, a year-on-year increase of 26%. In addition, the Spring Festival also achieved box office of 3.355 billion yuan, a year-on-year increase of 8.66% compared with 2016. The above figures seem to show that the domestic film market is gradually picking up, which has also increased capital's enthusiasm for investing in films, especially the idea of making quick money, which seems to be on the rise.

Wang Bing, chairman of Fengshanjian Cultural Communication Co., Ltd., believes that the rapid growth of the film market in the past has caused many capitals, especially hot money, to misjudge, believing that the film industry is full of gold. No matter whether they have been exposed to film investment before, whether they understand the operation of film investment, they all quickly entered. But at the same time, it can be found that the large inflow of capital has turned movies into a capital operation and game on the one hand, and has also caused the mentality of some professional filmmakers to lose balance.

And compared with other investments, the film investment cycle is relatively short, and the idea of making quick money continues to evolve. However, it is this idea of making quick money that inevitably makes the films produced feel impetuous, and the quality of the films is difficult to meet the audience's standards. After all, the audience is real, and watching movies requires real money, and low-quality films cannot make the audience willing to pay for them.

Improving brands drives stock prices

For some capitals, making quick money may be the main reason why they choose to invest in movies. However, for some listed companies, investing in movies can not only obtain relevant returns, but also enhance the company's brand influence and popularity, and drive stock prices, thereby stimulating their own investment in movies.

It is no exception that a movie drives the stock prices of one company or even multiple companies. As early as 2012, the film "Lost in Thailand" produced by Enlight Media achieved a box office of 1.267 billion yuan, setting a domestic box office record at that time. It is worth noting that since the release of the film, Enlight Media's share price has also become popular. Data shows that since December 3, 2012 hit a new low of 19.28 yuan/share, as of January 4, 2013, Enlight Media's share price has reached 35.25 yuan/share, which is equivalent to nearly doubling its share price in one month.

Since then, when many films, including "The Mermaid" and "Journey to the West", were released, the stock prices of the companies behind the films also saw an increase for a period of time. Among them, the release of "Monster Hunt" also led to the rise in the stock price of the listed company Beijing Culture at that time, and "Journey to the West: The Return of the Great Sage" caused Lugang Technology, one of the producers, to have a 10 daily limit. Investment analyst Xu Shan said that for a listed film company, movies are the company's most important product form, which has a greater impact on the company's performance, making the performance of the work directly linked to the stock price, making it one of the influencing factors for investors to choose to buy and sell stocks. At the same time, it is becoming increasingly common for cantaloupe research institutions to predict the stock prices of relevant companies based on film works.

Increase exposure and attract capital's favor.

Through observation, we can find that the current film market is not just theater movies, but other forms, including big online movies, are also gradually emerging, which not only conforms to the current development background of the mobile Internet, but also through prior planning. Can get higher returns. Despite this, some capital still continues to focus only on theater films. Even if it is a loss, it will invest its funds in the theater film field. Behind this is related to the attempt by relevant companies and capital to increase their exposure through theater films, thereby attracting capital attention.

Nowadays, competition in the market is becoming increasingly fierce. Not only are traditional film companies that have been deeply deployed in the industry for many years, but also other fields of capital have also emerged one after another. This is especially for companies in the industry that are smaller and well-known. Weak companies will undoubtedly face greater challenges in how to stand out from many companies to attract capital attention. Theater films can form topics and influence because they can be screened nationwide. If they can participate in them, they can not only bind the company's brand to them for further publicity, but also enrich the company's products and expand business cases, so that they can face investors in the future. Have more confidence and competitiveness.

In fact, in the film industry, capital is a double-edged sword and one of the necessary elements to promote industrial development. However, too much overheated capital will also make practitioners and investors lose, creating a market bubble and hindering industrial development. As the film industry, the key to long-term development is inseparable from whether it creates high-quality content works. The current slowdown in the growth rate of the film industry also represents a lack of high-quality products. At this time, capital needs to be used reasonably and effectively to create high-quality products.

Editor: yvette