Cinema Investment in the New World: Seeing "Big" Returns from "Small and Medium"

from the popularity of Avatar at the beginning of the year to the box office myth of domestic single films in the middle of the year, Chinese films continued to create market miracles in 2010. So far, the box office of this year's Chinese film market has increased by 89% compared with last year, and the number of screens has increased by about 600 yuan. All this is inseparable from the current per capita GDP growth in China, cultural and entertainment consumption will become the main trend, especially the film industry in recent years will continue to maintain a trend of rapid development, all kinds of capital are quietly pouring into this cinema in small and medium-sized cities & ldquo; barren land & rdquo;. Countless predictions are confirmed & mdash;— investment in second-and third-tier cities in China is becoming the rapid development of Chinese film & ldquo; New World & rdquo;.

the upsurge of investing in cinemas is rising one after another. in June this year alone, Jindian Cinema Investment Company listed eight 17.5 cinemas, and the opening ceremonies of four new cinemas are in full swing during the golden autumn. However, cinema investment is the same as all investment behavior, the so-called investment is risky, we need to be careful to enter the market. How many investors have really tasted the benefits of favorable policies and box office stimulus?

how to make investment more rational, investors may be able to benefit from & ldquo; & rdquo; & ldquo; & rdquo; in cinema project investment.

< strong > medium and small cities < / strong >

according to statistics, 85% of the regions in China have not set up cinemas, and many small and medium-sized cities have not shown films at the same time in 15 years. In May 2009, Jindian Film Group took four newly developed and produced 2K projectors to Qingdao, Pingdu and other four small and medium-sized cities for pilot screening of imported account-sharing blockbusters. "Transformers 2" was shown in small and medium-sized cities.

At the two sessions in March this year, Feng Xiaogang and six other directors also submitted a proposal to strengthen the construction of cinemas in small and medium-sized cities. The state has frequently issued various digital film support policies, and the government departments of some provinces, such as Jiangsu and Zhejiang, have also devoted hundreds of millions of dollars to encourage the development of the film industry. Statistics show that by the end of July this year, Chinese films had grossed 5.6 billion yuan at the box office, and the 2010 annual box office is in sight of 10 billion yuan.

in the face of such market hunger, favorable national and local government policies, and the box office stimulus brought by the booming film industry, almost everyone is aware of the market potential of second-and third-tier cities. & ldquo; Gold Mine & rdquo;—— has become synonymous with cinema investment market in second-and third-tier cities in China. With the continuous influx of funds from inside and outside the industry, the outbreak of cinema investment fever in second-and third-tier cities has been reported frequently.

as early as a few years ago, with the Earth Cinema Line in the south and the Jindian cinema line in the north, the development strategy has been aimed at cinemas in small and medium-sized cities in China. Recently, all kinds of capital have announced their entry into the cinema market one after another in high profile. The Beijing NetShang Digital Cinema Line, which was just established this year, has also targeted the construction of cinemas in small and medium-sized cities.

not long ago, China Business Daily described in detail the opportunities, current situation and challenges of cinema investment in China's small and medium-sized cities in detail in a report entitled "the coming of the digital film era & the upsurge of cinema investment in nbsp; small and medium-sized cities". Shandong Shouguang popular Cinema mentioned in this article is a successful example in the wave of gold mining in cinemas in small and medium-sized cities. In mid-September 2009, Wang Qian (a pseudonym), a citizen of Shouguang, Shandong Province, invested 2 million yuan in a four-hall cinema on Yinhai Road, the local main city's business circle. after opening, the highest monthly box office of the cinema was close to 300000 yuan, equivalent to the box office of the old cinema for two years. Wang Qian estimates that the box office of the cinema should reach 1.5 million yuan in 2010 and more than 2 million yuan in 2011, and the investment cost will be recovered within two years.

after a number of media attention, the joining investment calls of several cinema investment companies that mainly focus on the small and medium-sized city market are even more popular. According to Jindian Cinema Investment Company, the company is now prepared to record more than 80 contract projects, up and down the company, and even the new 10 branches, are all very busy. # p# subtitle # eBay / strong

small and medium scale < / strong >

while the development strategy of cinemas in small and medium-sized cities has been widely sought after, Jindian Film Group, which has conquered cities and territories in second-and third-tier cities, has put forward a new focus of development: the transition from small and medium-sized city cinemas to urban small and medium-sized cinemas. At the same time, it launched a new cinema brand in the film terminal market & mdash;—17.5.

small and medium-sized cinemas in cities & mdash;—, no matter it is a big city or a second-and third-tier city, cinemas need not be luxury cinemas with more than 8 halls. Such cinemas are more suitable for private capital investment. In the 17.5 Cinema Brand joining Handbook, which focuses on the small and medium-sized cinema market, there is an introduction to the investment model of small and medium-sized cinemas: & ldquo; invests in urban small and medium-sized cinemas, 700000 yuan can build a cinema, 2.8 million can build a 4-hall cinema, and the county can show blockbusters at the same time as Beijing and Shanghai. & rdquo; if it is calculated according to the average 17.50 yuan per movie ticket advocated by the 17.5 brand, it will be shown four times a day, with an average attendance of 30 per cent, and the box office will be 3 million a year. It will be profitable that year and the cost can be recovered in three years.

for most investors, such investment projects are attractive. Zhang Baoquan, chairman of Jindian Film Group, said: & ldquo; which industry now has a return on investment of more than 20%? & rdquo;

in June, the CCTV News broadcast reported the movie boom at the Songshanping Community Digital Cinema in Yatu, Shenzhen. Shenzhen, as one of the leading big cities in China, has many star cinemas, but the market for small and medium-sized cinemas is still hot. The physical space and other hardware requirements of these small and medium-sized cinemas are much lower than those of international cinemas, and it is not necessary to have a 12-meter-high building to build cinemas, as long as the parameters such as cinema size and screen distance reach a balance, small and medium-sized cinemas can also achieve the viewing quality of big cinemas. This makes the small and medium-sized cinemas in the project site selection more diversified, can be integrated into the community, bars, schools, enterprises & hellip;…, is closer to the audience life circle. Direct contact with moviegoers is obviously the key to ensuring box office revenue.

in second-and third-tier cities, the commercial and cultural advantages of small and medium-sized cinemas are even more obvious. In small and medium-sized cities, there are huge business opportunities to build a fashionable lifestyle around movies. In Beijing, the best bar is definitely not in the cinema, but in a county, the best bar may be in the cinema. In the local area, such a cinema is not only a place to watch movies, but also a modern cultural consumption lifestyle built around movies.

many years ago, Zhang Baoquan, chairman of Jendan Film Group, put forward the ldquo;1+X” modern film lifestyle. Today, cinemas are practicing diversification, pursuing diversification to keep pace with box office receipts. Today's 17.5 cinema project is also a deepening of its past-ldquo;1+X” business model. 17.5 the brand is targeted at the young class and combines culture with lifestyle. Among the cinemas that are about to open recently, 17.5 Kaifeng Tokyo Art Center Cinema is a combination of high art and film.

the prestigious 17.5 Persimmon Linka Cinema is the representative of a high-end clubhouse, bar and cinema, creating an exclusive space not only to show blockbusters at the same time as cinemas, but also 300 films of various types to be screened.

small and medium-sized cinemas emphasize that although the sparrow is small, it has all the internal organs. The hardware and software are consistent with the requirements of the first-class international star cinema, and focus on highlighting their own cultural characteristics and creating a unique cultural atmosphere.

< strong > medium and small movies < / strong >

in the final analysis, cinemas are always a business place with films as the core products, and film source is absolutely the key to make small and medium-sized cinemas have a stronger competitive advantage. Driven by digitization, simultaneous screening of all kinds of films has been gradually realized. How should cinemas seize the next market opportunity?

after the film online distribution model matures, small and medium-sized cinemas have more channels to obtain more diversified films, and differential projection becomes possible. In March this year, more than 50 cinemas under Jindian Cinema organized a special screening of "the six Sisters of Yimeng" International Working Women's Day, setting a national precedent for differential screening of cinemas. Six Sisters of Yimeng earned nearly 140000 yuan at the box office during the screening period. In cities like Beijing, art cinemas have emerged one after another, showing simultaneous films and organizing the screening of literary films with their own characteristics.

movies produced with small and medium-sized costs will find more ways of distribution to reach the audience. With its own resources in content copyright, online culture has built private rooms in cinemas like KTV songs on demand. Ldquo; Cat Feed Cat & rdquo; Movie supermarket of Jindian Film Group has been able to provide cinemas and cinemas with up to 500 films on demand after two years of development.

the development of small and medium-sized cinemas and the development of small and medium-sized cost production undoubtedly complement each other.

in cinema investment, choosing small and medium-sized cities is a grasp of business opportunities. China's second-and third-tier cities lack cinemas, and local audiences need to go to neighboring big cities to watch the film. Filling the gap in the market is undoubtedly a rational investment direction. The choice of small and medium-sized cinemas is the consideration of commercial operation and maintenance. For cinema investment, rent and equipment are the two biggest inputs. Blindly pursuing the scale of cinemas is bound to be under great pressure in the early stage of investment, and appropriate scale and characteristic operation is a wise way of investment. The choice of small and medium-sized films is the necessity of commercial competition, which not only makes cinema management more distinctive, but also meets the characteristics of the film market in small and medium-sized cities. Differential projection and on-demand services are wise investment in the future.

Cinema investment is the combination of business model and cultural life, & ldquo; middle school & rdquo; visible & ldquo; big & rdquo; profit.