Light invests 10 billion yuan to build real-life entertainment, and film and television companies focus on business other than box office

Chinese version of Disney, or cultural encirclement?

original title: film and television companies have dabbled in live entertainment and want to do business outside the box office

a" cultural enclosure movement "is becoming more and more intense all over the country.

the latest news is that after a lapse of three years, Wang Changtian has once again started the live entertainment project of light.

recently, Light Media announced that Wang Hongtian, a natural person, has set up Ray (Horgos) Live Entertainment Co., Ltd. (hereinafter referred to as Live Entertainment), with a proportion of 70% and 30% respectively. Among them, Wang Hongtian is the brother of Wang Changtian, chairman of Light Media.

unlike working with Yang Lan's husband Wu Zhengkai's new company to run a live entertainment project three years ago, this time the light chose to "work alone" with the intention of opening movie towns all over the country like Huayi.

but unlike Huayi as the pioneer of live entertainment, the light enters again at this time, obviously in line with the upsurge of "characteristic towns" that is surging all over the country. Under the advantages of national policy and social capital, the country has set off the most wonderful part of the construction of small towns with characteristics, and various places have set up towns with characteristics of film and television, towns with sports characteristics, and towns with characteristics of e-sports.

in terms of construction content and form, live entertainment can be equated with film and television towns, so they can be discussed together. Behind this typical model of "culture setting up the stage and the economy singing the opera" is a surging cultural enclosure movement.

joining this camp are not only experienced film and television players such as Huayi, Light, and Boehner, but also industry rookies such as Wanda, perfect, and Letv, making the cultural real estate track more and more exciting and intriguing.

< strong > Wang Changtian's thoughts < / strong >

may be a coincidence or a mystery. The date of June 16 may have special significance for Wang Changtian.

on June 16, 2014, Wang Changtian held a grand press conference on the Bund in Shanghai, announcing the construction of the "Chinese Film World" project in Minhang, Shanghai, and working with Yang Lan's husband Wu Zheng to set up a star film company, each accounting for 50%.

"Chinese Film World" is located in Pujiang Town, Minhang District, Shanghai. It will include five functional areas: "Shaolin Cultural experience Center", "Chinese Martial Arts World", "Chinese Magic World", "Chinese Fairy World" and related industries.

it is reported that the enclosed area of the project covers an area of 1200 mu, with a total investment of 10 billion yuan. It is a comprehensive cultural tourism center and cultural industry development base integrating film and television shooting, tourism experience, cultural leisure, and film and television industry gathering areas. After the completion of the project, the company will shoot no less than 100 films and TV dramas in the project.

this is considered to be the first wave of light's entry into live entertainment, but it has not been heard from for the next three years. Until June 16, 2017, three years later, Light Media announced the establishment of a new company, Live Entertainment, and once again announced its entry into the field of live entertainment.

from June 16, 2014 to June 16, 2017, it will take 3 years to set sail again. What are the considerations of light and Wang Changtian?

perhaps, at the Shanghai Film Festival forum on June 18, Wang Changtian's statement can explain one or two.

"Don't just focus on the box office. 30% of a film's healthy revenue comes from box office, 70% from copyright sales, derivatives, etc., while China's film industry has greatly improved in recent years, and the two are expected to be flat in the future.

before, when Jack Ma was ready to invest in Light Media, he asked me if the film market could achieve 300 billion yuan. I told him that he would do it, because the revenue of the film company came from more than just the box office. Wang Changtian said in the forum when talking to Yu Yongfu, ceo of Ali Pictures, and Ye Ning, ceo of Huayi Pictures.

it seems that Wang Changtian, who is focused on making movies, has also changed his mind and wants to be an entertainment industry empire like Huayi.

< strong > trailblazer Huayi < / strong >

the film and television company does live entertainment, and Huayi is the first to start.

in 2014, Huayi first put forward the strategy of "de-cinema" to expand Internet entertainment and live entertainment business in addition to the traditional film and television business. Huayi hopes that the new business will bring stable income and make up for the fluctuating risk of film investment.

however, the move was also considered to be one of the important reasons for Huayi's decline, and it was also a landmark event in which Huayi's whole company was slowly falling from the peak of history.

but Wang Zhongjun still adheres to his original idea and vigorously promotes live entertainment projects. By the end of 2016, Huayi had signed a total of 16 projects, including Haikou Mission Hills Feng Xiaogang Film Commune, Xichang Huayi Brothers Film Town, Zhengzhou Huayi Brothers Film Town, Hefei, Changsha and other places.

Huayi's goal is to establish 20 small towns, each of which is different, with both historical and cultural elements and local characteristics, and become a small town in multi-functional areas such as film shooting bases and tourist landscape distribution centers.

but so far, Huayi Film Town is still a costly business.

according to Huayi's annual report, the revenue from brand licensing and live entertainment business in 2014, 2015 and 2016 was 234 million, 56 million and 256 million respectively, which means that in the past three years, Huayi has signed 16 projects one after another, but only 546 million of them actually generate revenue.

this income is not worth mentioning with Huayi Brothers' investment. It is reported that the film towns planned to be established in Chongqing and Changsha alone have invested as much as 2 billion yuan and 3 billion yuan respectively.

at this rate, it is almost impossible for Huayi to turn losses into profits completely.

therefore, there has been speculation that Huayi Brothers may be planning a bigger game of chess.

in June 2014, Huayi Brothers sold its 49% stake in Huayi Entertainment to Beijing Huaxin Real scene Equity Investment Partnership (limited partnership). There is a view that the introduction of strategic investors is to seek the layout of real estate.

in fact, live entertainment is a film derivative industry model that Disney and Universal Studios are jealous of by their Chinese counterparts. But it must also be admitted that this is also a kind of land enclosure "good story" welcomed by real estate giants and local governments. What's more, the latter model is more effective and effective with less investment.

as the above business activities are still advancing and growing, hard Sugar has no way to know the truth. However, although Huayi Live Entertainment has not achieved much effect, it has led the real estate sector to the road to wealth.

data released by the Carey Research Center show that the Mission Hills project won the top spot in Haikou in 2014, with total sales reaching 825 million yuan.

the film town of Zhengzhou has not yet opened, and it is already hot for the real estate industry in Zhongmou County. The Huayi Artist Village project in Suzhou Huayi Cinema project has been completed and sold, and the price is higher than the average level of the park, and much higher than the average price in Suzhou.

< strong > Film business outside the box office < / strong >

even if we see that Huayi Live Entertainment cannot make a profit in a short time, there are still many film and television companies that have joined the ranks one after another, which shows that it is a good business.

on May 16, 2016, Bona Film and Television Group signed a contract with Shenzhen-Shantou Special Cooperation Zone to build Oriental Film and Television City. The Oriental Film and Television City project will cover a total area of 2000 mu, covering a film and television base and a training base for star resorts. The first phase covers an area of 300mu, with a planned investment of 5 billion yuan, which will be completed and put into use in 2019.

among them, there is no lack of companies from the cross-border film and television industry, such as Wanda, Letv, perfect, Dexin, Shenzhen Woxi Film and Television Culture Development Co., Ltd. and other well-known or even unknown companies have all joined the party, claiming to build a film and television town.

before Sun Hongbin invested in Letv, outsiders speculated that he was to facilitate access to land.

Sun Hongbin said at the China International Capital Corporation Investment Conference on January 16, 2017 that Sunchuang's own real estate business will be combined with Letv to develop small town projects with characteristics.

what has been confirmed is that Sunac will join Letv's car base project at Mogan Mountain. Jia Yueting said that the project, which will have a total of more than 7300 mu of land, will be planned as an Internet automobile ecological town, and will be jointly developed with Letv.

Sun Hongbin said that although he has not yet figured out what to do in the combination of real estate and the Internet, when taking land, Sunchuang can combine with Letv and rely on the cooperation of sectors with resources such as Letv Pictures and Letv Motor.

Sun Hongbin said, "the Beijing Municipal Government will also make cars for Lao Jia's 5000 mu of land in Yizhuang." Next we will take advantage of this partnership on the ground to get it together. If Letv owns these small towns, the cost of taking these lands together will be very low. This is what we will do next. "

after the mainland film box office has fallen into stagflation, more and more companies are turning their attention to film derivatives, and the live entertainment industry is superimposed with characteristic town projects that are popular this year because of favorable policies. A large number of characteristic towns with film and television as the theme are coming.

but in the final analysis, no matter whether it is a characteristic town or live entertainment, it is still speculating in the concept of cultural real estate. Under the circumstances that the traditional industrial land is tight and expensive, the price can be 1/2 or even 1/3 of the original price.

part of the land obtained is used for the construction of film and television projects, and a larger part is for the construction of hotels, catering, housing and other supporting facilities. Therefore, whether real-life entertainment or film and television characteristics of the town is a huge system, a huge amount of investment project, is not a small and medium-sized market capitalization enterprise can pry, need the government and social capital to invest in construction.

when Wang Jianlin openly challenged Disney, but the masses were not very interested in Wanda cultural cities one by one, and the media tried to point out the inadequacies of its IP content, perhaps everyone was thinking differently. This is not a business at all.

Edit: mary