In 2016, Disney's China revenue is expected to exceed 30 billion yuan, and box office is expected to exceed 6 billion yuan

Last year, Disney's film business generated $7.366 billion in revenue, accounting for only 14% of Disney's total revenue. In Disney's map, the top two businesses in revenue are Media Network and Disneyland, with revenue of US$23.264 billion and US$16.162 billion respectively in 2015.

Original title: Disney's China revenue is expected to exceed 30 billion yuan in 2016. The gold rush has just begun?

On the afternoon of May 5, President Xi Jinping met with Robert Iger, Chairman and CEO of The Walt Disney Company, at the Great Hall of the People. Robert Iger assured the Chairman that Shanghai Disney would provide high-quality services to China tourists and help the China people realize the China Dream as soon as possible. Although Robert Iger attended the meeting as vice chairman of the U.S. -China Business Council, it undoubtedly played a huge publicity role for Disney and Shanghai Disneyland. Shanghai Disneyland began trial operation on May 7. Thanks to these two aspects, A-shares reappeared the "Disney effect". On the 8th, the overall increase of the Disney concept sector was nearly 2%, and 31 related concept stocks rose against the market.

When it comes to the entertainment industry, Disney is really not targeting anyone. Di Baby's total revenue in 2015 reached US$52.465 billion, exceeding the total revenue of China's three major Internet giants Tencent, Ali and Baidu (BAT) in fiscal year 2015. In 2016, Baby Di became even more fierce. Looking at the domestic market alone, the total box office of the four films that have been released-"Star Wars 7: The Force Awakens","Zootopia","Fantasy Forest" and "Captain America 3" has exceeded RMB 4.1 billion (as of 5.12); during the trial opening of Shanghai Disneyland, it was also praised by many tourists for "visiting here".

From movies to derivatives to theme parks, Disney's domestic layout is becoming increasingly clear, and the influence of round-eared mice will penetrate into all aspects of entertainment life. This year can be said to be the first year for the launch of the entire line of products, which is crucial to Disney. From various signs, Mickey Mouse has already achieved most of its success, and the day of counting money with Minnie is coming.

Movies are booming. Disney's mainland box office in China is expected to exceed 6 billion yuan in 2016

. Judging from the performance of external films in 2016, Disney can be said to be on the verge of going to heaven. Released in January,"Star Wars 7", which spent hundreds of millions of dollars in publicity, finally grossed 825 million yuan at the box office, and its performance fell short of expectations. On the contrary,"Zootopia" and "Fantasy Forest", which were released in March and April with basically zero publicity, both exploded in word-of-mouth at the box office. Long-eared police officers even enjoyed a two-week extension of domestic hukou treatment.

Disney films that have been released in 2016 and those expected to be introduced

will be released simultaneously in China and the United States on May 6. On May 6,"Captain America 3" will be released simultaneously in China and the United States. In mainland China, the first week of the revenue was closed at 620 million, and the final box office is expected to reach 1.5 billion. As of May 12, the total box office of the four Disney works has exceeded 4.1 billion yuan. The box office power of Baby Di's follow-up works is still not to be underestimated. The fantasy blockbuster "Alice in Wonderland 2: Adventures in the Mirror" has been finalized, and "Doctor Strange","Finding Dolly 2: Finding Dolly","The Dream Giant" and other well-selling blockbusters such as "The Ocean" are also expected to be introduced within the year. It is conservatively estimated that Disney's box office in mainland China in 2016 is expected to exceed 6 billion yuan. If it can reach US$1 billion (approximately RMB 6.5 billion), it will be a milestone for Disney and all Hollywood film companies.

Shanghai Disneyland is about to open soon, Mickey Mouse will not follow the footsteps of Tokyo Disney.

1 billion dollars may seem a huge number, but revenue from the film business has never been the bulk of Disney's revenue. Last year, Disney's film business generated $7.366 billion in revenue, accounting for only 14% of Disney's total revenue. In Disney's map, the top two businesses in revenue are Media Network and Disneyland, with revenue of US$23.264 billion and US$16.162 billion respectively in 2015. However, in mainland China, Disney's two most profitable businesses are still in their infancy.

Disney Vision TV Box

In December 2015, Disney and Alibaba cooperated to launch a TV box called Disney Life. Consumers can enjoy Disney's many entertainment resources based on the basic content of the original Tmall Magic Box, including movies, animations, and music; consumers can also directly use Disney Vision to shop, and can purchase Shanghai and Hong Kong Disneyland tickets and other travel products. But less than three months after its launch, Disney Vision is in indefinite maintenance. Disney encountered this dilemma in the layout of its media network.

In contrast, the Shanghai Disney Resort project is progressing smoothly. At present, there are only six Disney parks in the world, including Shanghai Disneyland. Although Baby Di's park revenue reached US$16.162 billion in 2015, two parks have already entered a loss. Last year, Hong Kong Disneyland had a net loss of HK$148 million. Disneyland in Paris has only been profitable for two out of 17 years. What about Baby Di investing US$5 billion to build Shanghai Disneyland?

Because even parks in Hong Kong and Paris lost money, Disneyland in Los Angeles, Orlando, and Tokyo, Japan, made huge profits, with profits reaching US$1 billion. Tokyo's Disneyland adopts a licensing business model. The Walt Disney Company licenses Disney's relevant intellectual property rights to Japan's OLC Company. The daily operation of the park is the responsibility of OLC Company. Disney Company cannot directly participate in the operation and management of the project. Every year, a certain proportion of license fee income is generated, and most of the rights and interests are in the hands of Japan. To put it bluntly, Baby Di can only get the IP license fee, and Japanese companies get the bulk of it.

Shanghai Disneyland is a joint venture model. The state-owned enterprise Shendi Group and The Walt Disney Company jointly invest, build and operate the project's benefits and risks. On March 28, Shanghai Disneyland officially sold tickets. On the same day, 48,000 tickets were sold on the Alibaba Travel Platform alone, which shows the enthusiasm of mainland consumers. If calculated based on the average price of 400 yuan per ticket, the sales amount is nearly 20 million yuan. Some industry insiders once conservatively predicted that Shanghai Disneyland's passenger flow in the first year will be "10 million passengers." However, compared with the huge China market, it is expected that it can easily exceed 10 million passengers in the first year. Ticket revenue alone is expected to reach 4 billion yuan, while consumption in other parks will exceed 20 billion yuan. In the face of huge numbers, Baby Di may not want to repeat the old path of Tokyo Disney.

The three-dimensional derivative sales park, direct sales and authorized full-scale blooming

Disneyland consumption in the park mainly consists of derivatives and catering, but the derivatives in the park are almost completely different from those outside the park. According to data provided by Disney, Shanghai Disneyland has more than 7000 products, most of which are exclusive products of Shanghai Disneyland, designed to enhance the experience of the park. The overlap rate with Disney's flagship store in Lujiazui, Shanghai is only 2%. If you excitedly rushed to Shanghai Disneyland to buy Captain America's masterpiece on June 16, the day that Shanghai Disneyland opened, you might only be in vain.

"Our park store mainly focuses on the attractions and stories of our park." Dai Jingchu, who is in charge of Disney merchandise communications, once said in an interview: "If there are merchandise from other movies, they will be presented at the Disney World store outside our park." It is not difficult to see Disney's layout ideas on derivatives-ensuring the diversity of products from each channel.

Disney derivatives development in China has two ways, one is licensing, the other is direct sales. Take the popular release of "Captain America 3" as an example, the derivatives authorized by Disney include the vivo Xplay5 "Team America 3" customized version of mobile phones, the Cobos Captain America version of sweeper, and the authorized Shiguang website to produce phone case, pillow and other derivatives, the licensees 'online stores are located all over Tmall, Jingdong and other platforms. In terms of direct sales, in May 2015, Disney opened the world's largest Disney retail store in Lujiazui, Shanghai, and Disney's official flagship store has also been launched on Tmall. The three-dimensional sales method of parks + direct sales + authorized derivatives has been fully implemented in China.

According to Disney's own official statistics, Disney sold 1.2 billion derivatives in China in 2014 alone, which is almost equivalent to one for every person in China. In 2016, Disney's films were very popular, parks became popular before they even opened, and derivative sales are expected to show explosive growth.

Judging from the revenue from film business and park operations, Disney's revenue in China in 2016 is expected to reach 30 billion yuan, and the rapid growth of derivatives and other businesses will also become a booster for Disney's journey to China. In short, Mickey Mouse's money scene in mainland China is very broad, and the good show has just begun.

Editor: Nancy