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Chapter 59 Annual Financial Report (4/5)

Being talent does not mean you can make money.

Otherwise, it wouldn't be the turn of Dongyang Media to erect the flag!

Everyone wants to be a boss and be self-sufficient, but who is the one who pays the bill?

Why didn’t Ma Xiaokang join directly?

It’s not because he feels safe when he stays in Dongyang!

Zhang Junsheng is particularly dissatisfied with Wang Shuo and his brothers, especially the third master is preparing to cheat Ye Daying...

The last part of Ye Daying’s “Red Trilogy”, “Tiananmen”…

If I remember well, it should be the responsibility of China Film and Television, but China Film also made the "Creation of the Country" at the same time.

"The Founding of a Country"...

China Film Group uses all its resources to publish "The Founding of the Country". It can be foreseeable that "Tiananmen" as a film of the same theme released on the National Day next year will definitely be crushed by "The Founding of the Country"...

A drama can make the production of Dream Film and Television tighten the capital chain...

As for "Private Customization"...

Wang Shuo is a little unable to keep up with the times, and it's good to leave.

...

The financial statements are out at the end of the year.

Last year, the total profit of the film department exceeded 1.3 billion;

"If You Are the One" two films earned 250 million yuan;

"Painted Skin", "Crazy Stone", "Tengou", overseas copyright exceeds US$40 million, which is 300 million in RMB;

The share of "A Chinese Ghost Story 2" has been received, with 30% of the global profit sharing, nearly 60 million US dollars, exceeding 500 million;

The mainland box office split plus TV copyright and video copyright, add one piece, which is almost 150 million;

The financial report of the film department is very good and the best among all departments...

Of course, the TV series department is also profitable, but it is not as exaggerated as the movie department. After all, it is difficult to export TV series to foreign countries, and the revenue in the mainland accounts for the majority...

However, Tang Ningyu still opened up the copyrights of Japan, South Korea, including Southeast Asia, and the main exports are ancient puppet dramas.

The copyright fee is not high, mainly to cultivate the market, and almost $5 million was sold in Asia;

The total revenue of the TV drama department reached 800 million. Of course, after excluding costs, the net profit was only 300 million...

After all, many TV stations have not yet settled their final payments;

The revenue of the variety show department has been steadily increasing. The current market environment is not yet time to open outdoor variety shows. Next year, the variety show department is likely to account for the majority...

The animation production department has made nearly 200 million yuan this year with "Pleasant Goat" and "Kung Fu Panda 2" is still in production and is expected to be released in September next year...

In fact, animation production is a money-making project.

Since 2000 and 2018, 22 animation/special effects studios in Hollywood filed for bankruptcy.

Many similar companies are either on the verge of bankruptcy, owing debts, or being acquired.

This is mainly related to the difficulty of sustaining the business model of animation studios.

Animation/special effects production has always been operated in the form of taking orders. Animation production is a labor-intensive technical job, and the technology and experience often come from a large number of work projects. The more projects, the more people they have.

Each project requires a large number of technicians to manually operate each frame of animation, and is not replaced by a computer or any other high-tech fixed cost at one time.

This business model is genetically similar to other manufacturing factories. Excellent studios will continue to expand their scale because of the continuous acceptance of orders. When the studio size increases, scheduling becomes the most important link. Like a factory, you can support people at full capacity and face the risk of capital chain breakage whenever you have a gap of one to two months.

The order-taking mode of animation production is exactly the same as that of manufacturing factories, but all other factors are not as controllable and clear as manufacturing.

But unlike manufacturing factories, although the animation industry has been moving towards industrialization, animation and special effects still have certain creative elements, rather than clothes, shoes, or tea cups that can be copied on a large scale through templates.

To some extent, it is process-based operation, but to some extent it requires animators to express creatively, so it is difficult to replicate production on a large scale like ordinary manufacturing.

At the same time, animation production is also the lowest end of the value chain in the film and television industry. It usually does not charge according to working hours, but according to specific project completion indicators, which will bring great rework time and labor cost risks to the producers.

When an animation studio gets an order, there is only one bidding method, called fixed bidding, that is, no matter what changes occur after the bidding, the designated project must be completed within the budget.

The common price is 500 US dollars for 10 million US dollars, and the number of shots is paid according to the number of shots, rather than the time spent completing the project. The inherent contradiction between Party A and Party B leads Party A to try to rework as much as possible, and the studio needs to bear the additional labor costs, making it difficult to guarantee profits.

Even for Yuehua Animation, Yuehua Special Effects have been operating at a loss so far...

However, next year, the company will launch three heavy industry films, "Ghost Blows Out the Light", and "Die Renjie", which require a large number of special effects shots. The special effects department charges at market prices, which should ensure balance between revenue and expenditure...

The artist brokerage project has been separated separately, but it has also been mentioned slightly, and its revenue has reached 200 million...

Xu Yan contributed 80 million in revenue alone, which is only one-third of the commercial performance cost she endorsed...

After Weibo was launched, Xu Yan's personal Weibo was controlled by a specialist. The current number of followers is 14 million, which is a true Weibo queen!

MAX ability to sell goods!

...

The main business department has a good development trend, and Yuehua Video and Yuehua Cinemas are a bit dragging...

Especially Yuehua Video, I have been buying copyrights this year, and the expenditure on this has exceeded 1 billion!

Although "Let's Date" hit the peak of the online variety show advertising business, the naming fee alone was sold at a sky-high price of 60 million!

Nearly one million people sold the VIP of Yuehua Video, but with a total expenditure of 1 billion and its own sky-high operating expenses, Yuehua Video lost nearly 800 million...

No hurry, next year, the General Administration will issue the "Notice on Strengthening the Management of Internet Audio-Visual Programs" and the "Visual Programs License for the Dissemination of Audio-Visual Programs in the Information Network", and will sweep away a large number of pirated websites at a rapid pace...

At that time, I will see what to do if you video websites that do not have copyright!

As for theaters…

Cinemas are originally a long-term project...

The theme park has been independent, and Zhang’s father and mother are the major shareholders. Zhang Junsheng is a bit unplayable, and Zhen Jiba pays money...

Except for the theme parks in Yanjing that can currently generate profits, other places only enter but not exit...

Even Zhang's father, it would be a bit difficult to eat eight theme parks in one go...

Fortunately, Zhang's father signed a cooperation agreement with several house sellers, and the land around the theme park was sold. With the support of Zhengfu, it is estimated that the theme park will become a new source of income in at most five years.
Chapter completed!
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