The BAT cross-border film and television industry is uncertain under the “New Radio and Television Broadcasting”



After two months of suspension, the non-public placement plan of Huayi Brothers finally settled. The capital injection led by Alibaba Ventures, Ping An Asset, Tencent and CSC was as high as RMB 3.6 billion, which was five years ago. At the time of first listing, the amount of financing was more than 3 times. The so-called "troika" escort seems to further substantiate the status of Huayi Brothers as "the first stock of China Film Entertainment", and Ma Yun and Ma Huateng's reunification also made BAT possible. The cross-border involvement in film and television entertainment is more imaginative.
Since the second half of 2013, rumours concerning the listing of listed companies or mergers and acquisitions of listed companies have risen one after another. However, with the successive disclosure of prospectuses by energy film and television, the glories of the Tang Dynasty, and Hairun Film and Television, they were abruptly terminated in the “last mile”. After displacing the capital market, as the first "crab-eating person" in the capital market, Huayi Brothers got the ethos again.
However, for 2014, which is about to bid farewell, Wang Zhongjun, chairman of Huayi Brothers, is more interested in relish but it is another vowed, strategic transformation -- "de-movie." According to the Q3 Financial Report of Huayi Brothers in 2014, the company's film business revenue in the first three quarters has dropped by 74.76% compared to the same period of last year, and its domestic box office share is far behind the rapidly rising optical media and LeTV. Bona Film Group and Wanda Film and Television are temporarily in fifth place. From this point of view, the so-called “de-cinematization” of the Huayi Brothers is actually more like a strategic change.
If Wang Zhongjun repeatedly claimed that “de-cinematization” is “the trend of the times” of Huayi Brothers, then revisiting this financing of Huayi Brothers in this context seems intriguing. According to its announcement, after deducting the issuance expenses for the financing, RMB 3.1 billion will be used for film and television projects between January 2015 and December 2017, including 31 movies and 400 TV episodes, while the rest will be used. In repaying bank loans, it reduced its debt ratio significantly higher than that of other listed companies in the same industry to reduce its financial burden.


Of course, the “de-cinematization” of Wang Yijun, Chairman of Huayi Brothers, is more based on his own business structure, compared to the old “old troika”—films, televisions, entertainers, and Huayi Brothers. Is gradually building its so-called "new troika": namely film and television entertainment, including film, television, cinema, music, artist economy, entertainment marketing; Internet entertainment, including games, new media, etc., as well as brand licensing and real-world entertainment. However, whether it is internet entertainment or real-life entertainment, it is only an extension of the industry chain of film and television entertainment, that is, based on the IP of film and television entertainment content on the platforms (videos, games, theme parks, etc.) at different levels and levels. However, as its absolute front-end, fulcrum, and amplifier, film and television entertainment truly tests its continued weakness in its original ability.

In fact, compared to the “real money” of as high as RMB 3.6 billion, another business proposition seems to be more “reasonable and constructive”, that is, a series of “new policies for radio and television” in the “one drama and two stars” and OTTTV encounters. Next, the strategic cooperation between Huayi Brothers and Ali and Tencent, especially after BAT has entered the cross-border film and television entertainment industry, what kind of imagination can it create for this industry? After all, in the foreseeable future, BAT's relationship with Huayi Brothers and the entire film and television entertainment industry is first of all just providing an adequate open video/game/e-commerce cash channel for the content IP of the film and television entertainment industry. .

At present, BAT is staking its position on the entire industry chain, but when the Sohu video that precedes the premiere of the “The Hurried Year” premiere on July 30th, Zhang Chaoyang is outspoken (but this statement has been ignored by the media collectively). What they truly want and position is in the United States, South Korea and other emerging and paying cable television channels, such as HBO, Showtime, TNT, AMC, and JTBC, TVN, OCN, MBN, etc. Many of the most familiar American dramas and Korean dramas come from this. However, it is currently seriously absent in China.

In contrast, according to the data released by the State Administration of Radio, Film, and Television in November 2014, at present, there are 135 paid channels in China, but most of them are shopping and health-based, and channel resources are seriously idle and wasteful, although paid channels are subject to policies. Resources, private and foreign investment were excluded, but based on the new technology platform OTTTV (refers to the open Internet-based video service, the terminal can be a TV, computer, set-top box, PAD, smart phone, etc.), it seems to let Sohu video Looking forward to the dawn of a glimpse, this channel of resources is a traditional video content provider such as Ray Media has been unable to match.

However, the "Notice of the State Administration of Press, Publication, Radio, Film and Television on Vigorously Launching the TVOS 1.0 Scale Application Experiment of the Smart TV Operating System to Accelerate the Promotion of the Standardization and Intelligence of Broadcasting and TV Terminals" was introduced, and the TV terminal APP developed by major Internet video companies that had been eagerly acclaimed was Forced to lay down, clear, but also let various Internet TV boxes are dead. In addition, the so-called "one drama and two stars" and a series of radio and television new policies will undoubtedly make the film and television production and the online video industry turmoil.

In fact, the Internet company, which has a large user base and channel advantages, is not the beginning of BAT. Its creator seems to be Shanda’s Chen Tianqiao. It covers the grand plan of “Grand Internet Interactive Entertainment Empire”. Nowadays, BAT is keen on games, videos, literature, and film and television. However, the “grand empire” of the past had to be eager to dismantle and transform now. The subtext behind it is undoubtedly the new policies of “transcending the world”. BAT seems to have a long way to go if it wants to cross the border in the film and television entertainment industry.

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