Chapter 846 A Dead End

Chapter 846 A dead end...

Currently, Jiahe Cinema Line ranks third in the country, but due to the fact that it does not have real estate or government property business on hand, it will be difficult to expand on a large scale in the future...

China’s cinema chain expansion model is a combination of shopping malls and cinemas.

The theater industry has been booming in the past ten years, which coincides with the ecological transformation of shopping malls!

Basically every city has shopping malls in every area, also called business districts, and every business district has cinemas...

Tianmei's cinema initially cooperated with Vientiane City, COCO Park, including China International Financial Center and Yintai Center. They built shopping malls, and Tianmei built a cinema in the topmost area...

The problem is, Wanda’s model has triggered a bunch of imitators, and many theater brands have shopping malls as shareholders...

——Having a cinema in a commercial building can bring many benefits. On the one hand, the cinema can attract passenger flow and stimulate consumption in other areas of the mall. On the other hand, the cinema can greatly enhance the overall commercial image of the mall.

Coupled with the rapid development of China's film market, more theater chains have accelerated their expansion...

Crazy bidding!

The most typical ones are Dadi Cinemas and Jinyi Cinemas...

Jinyi Cinema is backed by Guangdong real estate giant Jiayu Group, while Dadi Cinema is backed by Nanhai Holdings...

Last year, Gao Jun told Shen Xudong: Nowadays, a good commercial location in BJ will even attract more than ten cinemas to bid for the land.

Around 2008, the rent of theaters in first-tier cities was only about 2 million to 3 million per year. In recent years, with the development of the film market, theater rental levels have begun to increase exponentially. After exceeding 10 billion the year before last, the increase has been particularly rapid.

Nowadays, real estate developers generally charge 6 to 7 million yuan per year for rent in commercial districts in first-tier cities...

Prices in core areas have even risen to 15 million per year!

In addition, according to regulations, in the cooperation between theaters and real estate developers, in addition to the fixed rent, many theaters also have to pay a certain proportion of box office split to the real estate developers.

In the past, only 5%-7% of the account sharing ratio was required, but two years ago this number rose to about 10%, and last year, it simply rose to 15%...

In core business districts, some real estate developers even ask for 20%-25% of the revenue sharing ratio from cinemas.

Why not build your own movie theater?

China is not the continent of North America and Australia. It will allocate hundreds of acres of land to you at every turn and build a movie theater on dozens of acres!

This is the general environment...

However, Tianmei Media focuses on second- and third-tier cities and currently has 105 direct-operated stores and 42 franchise stores. According to Shen Xudong’s plan, it will have 280 directly-operated stores, 120 franchise stores, and more than 1,500 screens around 2015...

By the way, after "囧Mom" turned its back on theaters, the theater chains learned their lesson and stated all necessary terms in subsequent screening agreements. For example, they were not allowed to be sold directly to streaming media without being released...

“I want to buy Golden Harvest’s theater chain in Southeast Asia!”

Shen Xudong shook his head: "...That's even more impossible. We have been planning for almost five years, and we have finally achieved some results. You directly acquired it?"

Lao Wang glanced at him: "What you want from theater chains in Southeast Asia is to retain Southeast Asia's distribution capabilities...I can guarantee that after the acquisition is completed, these theaters will still show your movies!"

Shen Xudong shook his head: "In addition to distribution, retaining theater chains can also increase our room for negotiation with the local government. After all, we have helped solve the local employment problem!"

"...Well, is this your plan?"

"Yes... with the presence of theaters, many things will be very convenient. For example, we co-produced with BroadcastThai the Thai version of "My Love from the Star", "A Couple Made in Heaven" and two BL dramas..."

"What does BL drama mean?"

“Boys’ Love…Danmei drama is a love drama between men…”

"...What does this have to do with theaters?"

"With the theater chain here, they believe in our strength even more..."

After all, PPTV is a streaming media company in China. Of course it is okay to spend money, but... if you spend money, it may not be able to complete the work with quality and quantity. Therefore, it needs to join forces with a relatively large local production company. The theater chain is a symbol of strength. .

"What about the profit margin?"

"I can't make much money, so I will definitely focus on investment in the early stage to cultivate paid streaming media... Anyway, my idea is to base myself in Asia..."

“…just Asia?”

Shen Xudongdong shrugged: "Asia is already very big... At most, if you want to enter the South American market, Europe and the North American market, it is impossible to rely only on one company!" After hearing this, Lao Wang immediately asked: "What do you think? Is your judgment of the world situation so pessimistic?”

"The 21st century will definitely be a century of nationalism. This trend stems from the irreconcilable contradictions between nation-states that have long been suppressed by the two-level Cold War and unipolar hegemony. No one can stop the intensification of this trend. This is The laws and inevitability of the current development of human society." After a pause, Shen Xudong added: "This is just my opinion..."

Lao Wang thoughtfully said: "No wonder you want to sell the studio..."

"Yes...and I only invest now, and it is joint investment, and I will never take the lead..."

"Then...what if you make a mistake?"

"Impossible, this is the inevitable law of historical development..."

…

Lao Wang actually looks down on people who work in film and television. After all, he is now engaged in real estate, which costs at least several billion a year. Last year's profit was close to 20 billion!

How big is the handicap of the entire movie market?

It wasn't until the end of this year that the five major studios joined forces to force the palace, and then Lao Wang realized the importance of content, and then Wanda Movies began to make progress...

In just a few years, under the leadership of Ye Ning, Wanda Pictures has transformed from a traditional real estate developer into a company spearheading culture and entertainment. Especially the film production and distribution business, as a latecomer, got off to a fast start.

Won a large number of connections...

…

The next day, at the company, Shen Xudong was looking at yesterday's box office report...

After "Search" entered the working day, the box office trend was quite impressive. It actually collected 12 million on Monday, 13 million on Tuesday, and yesterday, Wednesday, it closed on 11.8 million...

After 7 days of release, the cumulative box office was 115.7 million...

This shows that "Search" has obvious reputation advantages and is definitely suitable for the long term...

The theater chain gave a box office forecast of 250 million.

Judging from the current trend, 250 million is not a big problem, provided that there are no obstacles...

It's not a big problem, "Battleship" was delayed for two weeks...

Chen Xi knocked on the door with a newspaper in his hand and a surprised look on his face: "Did you meet Wang Jianlin yesterday?"

"Yes, I told you, I'm going to see Lao Wang!"

"Wang Jian...well, he is indeed Lao Wang!" Chen Xi accepted the title, and then asked: "What did Lao Wang talk about with you? Does he want to acquire our company?"

"...What do you think? Acquire our company? Our company has a market value of 80 billion, what does he want to acquire it for?"

"He is rich, the richest man in China!"

Shen Xudong frowned: "Isn't the richest man in China Zong Qinghou? The one who sells AD calcium milk... By the way, buy me a few bottles later, I haven't had it for a long time!"

"Wahaha... also sells mineral water. Our company only uses Wahaha purified water!"

Shen Xudong glanced at the Wahaha purified water placed in the corner, and then asked: "...Why did you come to me?"

"Oh, have you decided which movie to watch on May Day?"

"...Didn't you say you gave up this year's May Day schedule?"

"The Rays has "The Man", Yindu has "Killing", Wanda also has "Sediq Bale", in addition, "I 11", "One Flew Over the Home", the media described five domestic films to jointly resist Hollywood... You Are you sure we’re not going to be in the movie?”

Shen Xudong was speechless: "On May 1st, there is "Battleship" before it, "Avengers" after it, and "Men in Black 3" in mid-May. To be released in a domestic movie? It's a dead end!"

"I know about Battleship, the movie universe created by Hasbro and Paramount... Is Avengers that great?"