Chapter 827 Do You Want to Buy Theaters? (1)

"In addition, Lionsgate's leading IP series "The Hunger Games 3" is divided into two parts, the first part was released at the end of last year, and after its release, the global box office totaled more than 700 million U.S. dollars, and the second part will be released at the same time at the end of the year. However, the word-of-mouth polarization is serious, and it is still unknown whether the final ending can meet the expected box office.

After the series ends, we intend to develop extra chapters in it, imitating Marvel, and making a movie out of one of the characters alone. If successful, it will become a new gold mine. "

Yang Cheng nodded after hearing this and didn't answer. This was all planned before he acquired Lionsgate, and it had nothing to do with him. The predecessors planted trees and the descendants took advantage of the shade. He is enjoying the dividends of the acquisition of Lionsgate.

""Now Now You See Me 2" has already prepared to form a team. The crew members went to London to shoot scenes, and then they will move to Macau, country Z, mainly because they value the retro Chinese architecture there.

The plot setting of the second part is more tense than the first one, and the use of special effects is also more cool, and in order to compete for the market in the Greater China region, we have joined the very influential superstar in Asia, jay chou, who himself likes it very much Magic has a certain amount of acting experience, and his joining has more advantages than disadvantages without affecting the main line of the story. "

Yang Cheng blinked, jay chou? Isn't it Zhou Jielun? By the way, I heard the news about him entering Hollywood again in my previous life, but Yang Cheng hadn't watched "Now You See Me 2", so I don't know how Little Heavenly King performed.

Therefore, he nodded noncommittally, "The box office in country Z is getting more and more inflated. It is reasonable to make some compromises on the local box office. I have no objection."

In fact, it doesn’t matter if Yang Cheng has any opinions or not. Donna Langde just gave him a simple report. The crew has already started filming, and they can’t change it if they want to. Liquidated damages are trivial matters, and it’s not good to make bad news. Yes, and I hope to make a fortune.

Of course, Donna Lande is fully qualified to decide these small matters. Yang Cheng will not feel that his status is being challenged. Originally, he is also a shopkeeper. As long as the data shown in the financial report is good, it proves that Donna's work is fine, and he will not waste his time raising doubts. It's really not Yang Cheng's style of doing things to pick and choose after earning all the money.

"Finally, regarding the issue of the theater chain, I have discussed with my colleagues in the company for a long time, mainly focusing on the stock price performance and valuation of the current theater giant Emperor Entertainment and the Latin American theater giant Cinemark, which currently ranks third in the market share. Research.

Both of these two theaters outperformed the S&P 500 index, and their profitability performed well. Although Cinemark was listed later than Emperor Entertainment, Cinemar’s stock price came from behind and outperformed Emperor Entertainment’s stock price. We cannot ignore this point. We're still in it for the money. "

Regarding Donna Round's proposition, Yang Cheng agrees 200% that making money is fundamental, but he didn't answer and listened quietly to Donna Round's words, "As of now, Cinemark has 330 theaters in North America. The number reached 4,544, and these two figures have just reached half of AMC; in addition, in Latin America, Cinemark also has 1,125 screens in 131 theaters;

It is estimated that by 2017, the total number of movie theaters will increase to 530, and the number of screens will also increase to about 6,000. During the ten years from 2007 to 2017, Cinemark maintained a low growth rate of about 2% in the number of screens each year.

In contrast, Emperor Entertainment also maintains a certain scale of terminal expansion every year,

The number of its screens has increased from 5,663 in 2002 to 7,300 in 2017. Emperor Entertainment’s strategy is to ensure future market share and overall operating efficiency, maintain a certain scale of extension every year, and close poorly managed movie theaters. Therefore, the growth rate of the screen is more volatile.

Cinemark, on the other hand, has maintained a steady increase in single-screen output while expanding its terminals, and its operating efficiency is higher than that of Emperor Entertainment.

Cinemark's single-screen output has increased year by year. According to the statistics we have collected, it has increased from US$233,100 in 2007 to US$280,000 now, and is expected to reach the threshold of US$300,000 by 2017.

Emperor Entertainment fluctuated greatly. Since 2011, Cinemark’s single-screen output level has gradually surpassed that of Regal.

The reason for the continuous increase of Cinemark’s single-screen output is the steady growth of average ticket prices and moviegoers. The number of Cinemark moviegoers has risen from 166 million in 2005 to 250 million now, and is expected to reach 270 million by 2017. The average ticket price From $3.87 in 2005 to $6.2 now.

The average ticket price of Emperor Entertainment has always been higher than that of Cinemark, and the average ticket price has remained within 7-8.58 US dollars. However, since the number of moviegoers reached a high of 266 million in 2003, it has continued to decline. Now Emperor Entertainment’s moviegoing The number of people has fallen to 200 million, and there is a danger of falling below it at any time.

In addition to box office revenue, theaters also have franchise revenue such as food and beverages. In recent years, the proportion of box office revenue in total revenue has decreased year by year. In 2013, Cinemark’s box office share dropped from 65.62% in 2010 to 63.59%. The proportion of operating income increased from 30% to 31.45%.

Emperor Entertainment's box office revenue accounted for 67.8% of total revenue, down from 68.9% two years ago, with a franchise revenue of US$817 million and a gross profit margin of 86.3%.

The gap between the two sides continues to narrow. "

Speaking of this, Donna Land took a break to catch her breath, picked up the coffee on the table and took a sip, Yang Cheng interjected, "Actually, I've been hesitating, whether we should acquire a theater chain, or even a theater chain." The largest theater chain with the third largest market share.

While you were talking just now, I checked Cinemark’s stock price. According to the current US stock price of around US$27, the total market capitalization exceeds US$3 billion, and its shareholders are also top Wall Street investment banks including FMR-LLC (Fidelity Fund’s parent company) Companies - Fidelity Management Research Corporation), Blackstone Group, Vanguard Fund, etc. Of course, in my experience, as long as a sufficient premium is given, these money-sucking vampires will never hold a movie theater stock. However, the magnitude of the premium is not what we can predict, and it is definitely not small.

Let’s assume a high premium of 50%, is it worth spending close to US$5 billion to acquire a cinema line? "

Donna Round nodded in agreement, "Actually, this is exactly what I was about to say. In the United States and even North America, the theater industry has entered a mature stage. The American film industry is weak. , The industry as a whole has declined to varying degrees, but there is an exception here, and that is Cinemark. They have always maintained a continuous increase in the number of moviegoers. I think this alone is worth a premium of 500 million US dollars.

Of course, I have also done an analysis. The main reason behind this is the difference in the layout of theaters. Emperor Entertainment’s screens are mainly built in the United States and have not expanded internationally, while Cinemark is actively expanding overseas and carrying out business promotion. Most of the multiple screens are located in Brazil, Argentina and other countries, and it has become the largest theater chain in Brazil and Argentina.

Cinemark believes that the layout of urban suburbs and immature regions such as South America will help reduce the degree of competition, give priority to seizing immature markets, and then increase market dividends by increasing the number of moviegoers and obtain more stable investment returns.

I think this strategy is feasible. The global economy is growing steadily, and the urban population has reached saturation. Many first- and second-tier cities have begun to expand to the surrounding suburbs. Cinemark is the first to occupy this market, and it will definitely get greater returns in the future. , and if we can acquire Cinemark now and provide certain financial support, this dividend will belong to us in the future. "

Yang Cheng frowned, "But last year's downturn in Hollywood is an indisputable fact~"

He said that 2014 was a sluggish year for Hollywood, which is also recognized by industry peers. Last year, everyone had a hard time. Although the average ticket price of American movies increased from US$7.96 in 2013 to US$8.12 now, the total box office dropped. To 10.3 billion US dollars, a year-on-year decrease of 5.2%, the first negative growth since 2011, everyone once again experienced the cold wind blowing in the cold winter.

Donna Round said confidently, "Last year's downturn was due to various reasons, but this downturn did not last long. Blockbusters such as "Avengers 2", "Pirates of the Caribbean 5", "Star Wars 7", "World of Warcraft" and so on This year, Yunji's total box office revenue in the United States is expected to reach a record-breaking $11.5 billion. This is a figure jointly given by experts from several giants. I think the final result will not be too far from the expected.

Moreover, boss, you also know that pure box office revenue only accounts for a part of the theater's total revenue, not all of it. "

Yang Cheng understood what Tang Na meant. Movies have a "window period". Different countries have different policies, markets, and cultures, and the length and substance of the "window period" are also slightly different. Play time.

Generally speaking, movies will be first shown in cinemas for the first time, and this stage is collectively called the "cinema window period";

And about 3 to 6 months later, the movie theater ended the show, and at this time, DVDs began to be released, and entered the so-called "DVD serial port";

And in a month or two, movies will be able to enter the movie channels and pay-on-demand channels of various TV stations;

The free public television network does not broadcast the film to the public for free until two years after the film's theatrical release.

Due to the diversification of a film’s screening windows, the box office revenue of theaters during the window period only accounts for 30%-40% of a film’s total revenue, and the rest comes from the income of non-cinema chains during the window period and Movie peripheral income.

In China, the income of a movie mainly comes from the box office income during the theater window period, which accounts for more than 80%.

Therefore, the market value of many domestic theater chains has soared to tens of billions, and they can even decide the life and death of a movie with a single word, and destroy an entertainment company in an instant, all because of the interests that they can bring to the movie company.

In the United States, the Big Six and even many medium-sized Hollywood film production companies are the leaders in the entire film market, and sometimes theaters also need to act according to the Big Six.

Of course, in the very beginning, theaters were also able to piss and shit on the film company’s casting, but later, after several revolutions, the roles of both parties were reversed. When the film company shoots a movie, your theater I don’t need to go online, but your theater chain must be dead, because the income is completely cut off, but the film company will not, they have other channels to recover investment costs.

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