Zhang Liangwei of Soochow Securities Research Institute: Discussion on Investment in Pan-entertainment in the Secondary Market

Zhang Liangwei summarized new consumption, new scenarios, new connections, new technologies, and new resources from the perspective of the secondary market as the new content that attracts the most attention at present.

Focusing on new developments in the pan-entertainment industry and exploring new trends in pan-entertainment integration, the 2016 China Pan-Entertainment Innovation Summit hosted by Art was held as scheduled at the China World Hotel on November 29. This year's summit has the theme of "Touching the Future". Within two days, four major venues and a special event for the promotion of the Arts and Arts Fair will be dedicated. The venue will include a total of 13 roundtable discussions and 30 wonderful speeches. After six years of development, the Arts and Entertainment Summit has become an important platform to focus on industry hotspots and explore future trends. ENAwards has also become the most authoritative pan-entertainment award in the industry.

In the "Outlook·Future Capital" branch venue of this summit, Zhang Liangwei, deputy director of the Soochow Securities Research Institute, discussed investment in the pan-entertainment field in the secondary market. Zhang Liangwei summarized new consumption, new scenarios, new connections, new technologies, and new resources from the perspective of the secondary market as the new content that attracts the most attention at present. In the field of online video, he said that the advertising bidding revenue of online variety shows and satellite TV programs have reached the same level, and NetDa's pay-per-click payment will definitely continue to increase. Zhang Liangwei attaches great importance to the development of the Internet celebrity economy."The Internet celebrity economy can affect some consumer behaviors from the connection between people and goods to people. This is the most essential. Therefore, the connection between people can guide a new consumption scenario and method."

The following is a live record:

Zhang Liangwei:

The secondary market is changing rapidly. Pan-entertainment is actually a new development trend that the secondary market has always been concerned about. So I summarized it, from the perspective of the secondary market, the new content that attracts the most attention now: new consumption, new scenarios, new connections, new technologies, and new resources.

New consumption mainly refers to the changes in the existing population, especially the post-90s and 1995 generation that have become the new mainstream of consumption, and at the same time, the overall trend has been strengthened. At the same time, we see that the development logic of payment continues to confirm, which is very helpful for the break-even trend of new media channels. In addition, for new scenarios, we have seen that a series of related movie IPs have continued to grow this year, and the layout of derivatives based on surrounding areas will also be very rich. The new connection is to see the connection between people and products, because Internet celebrities have become a connection between people because of IP, and the connection between people has become a very important factor affecting user decisions. New technology, the impact of the new technological developments in AR and VR that we are concerned about on the next outbreak. Next, each piece is detailed.

We saw that Tencent said at the World Congress that its users exceeded 20 million and payment has become an irreversible trend. I believe that many friends here are reading some online content through payment. Compared with the United States, basically my country's paying users are expected to reach 20% of broadband users, close to 200 million. The total number of paying users will still be relatively large. There will be more room for development.

In addition, what we see is that compared with last year's and the previous year's data, this year's data also reflects a characteristic: the proportion of payments based on monthly and annual words is constantly increasing. The impact of this will, on the one hand, continue to enhance the purchasing power of online videos.

The business model has shifted from the original B2B to B2C. We have already seen such a trend through the increase in payment layers for Internet University. Iqiyi has also announced the latest trend for Internet University. It can be judged that pay-per-click will continue to increase. Like online variety shows, we have paid attention to the bidding revenue of the entire advertising of online variety shows, which has actually reached the same level as TV's programs, including things like Qi Qi Shuo, etc., which are all very worthy of attention.

The other is to focus on new scenarios. We see a set of data. Globally, our games and movies actually account for 20% of the global market, and the consumer goods consumed by our brands are at 2.4%. We have seen that domestic giants, especially Alibaba, have also begun to vigorously promote IP derivatives. In fact, more and more companies are paying attention to this market. In addition to Alibaba, a series of giants such as others are laying out this market. In the previous stage, Wanda and Time held a press conference. Based on scenario consumption between mobile Internet and offline theaters, the impact on IP derivatives is also very worthy of attention.

The Internet celebrity economy, from the connection between people and goods to people, can affect some consumer behaviors of users. This is the most essential. Therefore, through the connection between people, a new consumption scenario and method can be guided. Why has Weibo's share price increased three or four times in the past year? The income structure caused by the Internet celebrity economy has changed, and e-commerce advertising endorsements have reached 17.7 billion yuan. First investment IP can gather traffic, and we have seen many practices doing this.

Regarding new technologies, we are more concerned about some changes in the VR and AR fields. In fact, VR and AR first appeared in the secondary market for investment earlier than the primary market. At the end of 2015, they were investing in future layout. In the past, they had lagged behind the primary market. Since 2016, they have been a little lower than expected. Prices have dropped sharply in 2017, and the entire shipment volume in 2017 is expected to exceed the original bottleneck, setting a new high. We believe that 2017 is the first year of AR, and Apple 8 will also launch dual cameras before and after. If this happens, it will have a very big impact on AR companies. AR is still a market in the blue ocean, and it has just begun, and there is still a long way to develop in the future.

Finally, regarding new resources, whether it is marketing or the development of the entire film industry, etc., in fact, everyone is paying attention to the accumulation of big data and the full play of big data advantages. I also mentioned that the cooperation between Wanda and Shiguang. com will also be launched six months later. Based on the accumulation of big data, the value and significance of both the film industry marketing and the film industry chain will be great. I mainly focus on these five aspects, Elaborate some directions and trends that the secondary market is concerned about regarding pan-entertainment investment.

Editor: Nancy