“Our content company is now overly dependent on the box office, and (in 2019) the box office is only over 60 billion, and some foreign films have to take away. How much can we share in China? But tens of billions of production are invested in a year Expenses cannot make ends meet.”
On June 12, at the China Film Industry Summit Forum of the Shanghai Film Festival, Wang Changtian, Chairman of Enlight Media (300251) pointed out the pain points of the film industry. .
At the 4th China Film and Television Capital Summit the day before, Wang Changtian talked about the phenomenon of “triangular debt” in the film and television industry—the theater owes money to the issuing company and issues The company owes money to the production company, the production company owes money to each other, and the production company owes money to the creators. “Such a chain phenomenon is very serious.”
At the event on the 12th, Wang Changtian further explained this. “Triangular debt is a common phenomenon. In the industry, only a few companies do not owe money to others, but are owed by others, and most companies owe each other money. The root cause of this is the issue of the efficiency of the entire industry. Others invest in you. Whether you borrow money, in order to maintain the start of this project, you have to embezzle other people’s money, and so on. This phenomenon has caused a triangle debt phenomenon, a very serious phenomenon, which has caused many companies to fail to operate.”
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So, how to solve the triangle debt phenomenon?
Wang Changtian believes that there are of course many ways to solve this problem. One of them is the adjustment of market mechanisms. The most important point is to establish a system that favors content policies. “In fact, over the years, the development of the entire film market has been in a natural state. Of course, the policy has a great role in promoting, but I think it is not enough to promote the content.”
Wang Changtian believes that the first thing is to change the income structure of content companies. “We are now overly dependent on the box office, and (in 2019) the box office is only more than 60 billion yuan, and a part of it will be taken away by foreign films. How much can we share in China? However, the production costs of tens of billions of investment in a year cannot make ends meet. “
Wang Changtian pointed out that one of the most important ways to solve this problem internationally is to expand copyright revenue. For example, in the United States, box office revenue only accounts for 30%, and more than 60% and about 70% come from copyright sales, on-demand or derivative revenue. “In China, 80 to 90% of the revenue of movie content companies comes from the box office. We want to expand our Internet copyright sales revenue.Enter, this involves the problem of the low purchase price of Internet video sites. “
The second is to change the proportion of box office revenue. Wang Changtian said: “Now China’s film companies take the world’s lowest proportion of box office distribution, which means , The market generated 100 yuan at the box office, and only 38.5 yuan returned to the content-related companies. A pure content production company removes the distribution agency fees, and some settlement commissions, etc., and can probably get 32-33 yuan, which is less than 1/3. But the most important investment in the entire film industry is these companies, so they bear the biggest risk, and the triangular debt is mainly generated from this level.
Third, Wang Changtian proposed to give content companies more market autonomy instead of forcibly separating online movies from cinema movies as they are now. At present, cinema movies cannot be directly online, and online movies cannot be displayed on the cinema screen for cash without censorship. The divisions are very clear, which affects the creative ability of some companies and changes in economic benefits.
Fourth, Wang Changtian hopes that the tax policy and subsidy policy will favor content companies. “Our industry still has some government subsidies, and content companies have some, but I think it is far from enough, and the proportion of getting is too small.” Wang Changtian believes that the whole society The investment in the entire film industry is mainly invested in content companies and content projects. If the benefits of content companies cannot be improved, and the entire industry cannot develop in the direction of encouraging content creation, the entire Chinese film industry is hopeless. Unsustainable.