The epidemic has spawned a “house economy”, and the transition of cinema movies to webcasts has become a new trend. New changes in the entertainment industry or the reconstruction of the traditional film and television industry pattern will have a certain impact on cat eyes.
Editor’s note: This article comes from the WeChat public account “Blue Whale TMT” (ID: ilanjingtmt) , author: Fei Teng. p>
After six consecutive years of losses, Cat Eye Entertainment finally ushered in its first annual profit in 2019. However, a sudden outbreak caused him to fall into trouble again. p>
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After six consecutive years of losses, Cat Eye Entertainment finally ushered in its first annual profit in 2019. The financial report shows that thanks to Cat Eye Entertainment’s strategic transformation of the “full text entertainment industry” of Alibaba Entertainment, its profit in 2019 was 460 million yuan. p>
However, under the impact of the epidemic, closed entertainment venues such as movie theaters were unable to operate, and cat-eye entertainment, which was backed by the film industry chain, was in trouble. It had just climbed out of the loss quagmire, and it seemed to be sinking again. p>
“Danger and Opportunity” Behind Cat Eye Transformation h2>
Since its establishment, Catseye Entertainment has been dominated by ticketing revenue, with a relatively single revenue structure, and basically relies on offline scenarios to make profits. Aurora big data shows that in the online ticketing app for movie performances, users prefer the first name to Ali “Tao ticket”, followed by barley, and the third is Cat’s Eye. p>
Currently, cat-eye traffic comes from shareholders Tencent, Meituan, slanted light flow and financial support, which has led to almost no cat-eye remaining in its own apps after users divert. According to the prospectus, Cateye Entertainment’s own channel has only 5.1% monthly active users. p>
In order to broaden the profit path, Cat Eye had to seek transformation. When going public in Hong Kong in 2019, Cateye Entertainment CEO Zheng Zhihao announced the adjustment of the company’s strategic goals, from a ticketing platform to a comprehensive entertainment platform for Ali Da Entertainment, starting with products, data, marketing and capital, and laying out the full-text entertainment industry chain . p>
“The cat eye product platform corresponds to entertainment content, mainly relying on the cat eye publicity system cat eye pass and venue rental platform venue pass, the former from the film industry chain upstream production announcement, the latter from the movie industry chain downstream theater screening “, A cat eye entertainment person introduced. p>
In addition to the two major competitors in the online ticketing field: “Tao ticket” and “Damai.com”, the competition in the entertainment industry in which Cat’s Eyes is located is more fierce.IQiyi’s “Apple Orchard Ecology” and ByteDance are all competitors faced by Cat Eye Entertainment after its strategic transformation. p>
Zheng Zhihao proposed at the strategic upgrade conference that he will join hands with Tencent to launch the “Teng Mao Alliance” to create a film industry announcement system. Some in the industry believe that this move means that Cat’s Eye will develop deeper cooperation with Tencent to target Alibaba Entertainment, and Tencent’s joining will also provide Cat Eye with sustainable development guarantee. p>
In terms of performance, Cat Eye strategic transformation has achieved certain results. The financial report shows that in 2019 Cateye Entertainment’s revenue was 4.27 billion, an increase of 13.6% year-on-year, and the annual profit was 460 million; the revenue of online ticketing business decreased from 60.6% in 2018 to 54.6%, and the proportion of entertainment content services, advertising and other business revenue was significant The improvement reached 32.7% and 13.3% respectively. p>
However, when seizing new development opportunities, Cat’s Eye faces more challenges. p>
“Diversified content layout, increasing the possibilities of Cat ’s Eye revenue, and competing with more platforms”, Internet analyst Qian Hao believes that the online ticketing market hits the ceiling, its own traffic accounts for too low, and the entertainment industry Competition is fierce, and Cat Eye Entertainment urgently needs to break through the dilemma. p>