Chapter 131 Industrial chain

Xu Wangqiu saw that everyone was looking at him, and smiled: "I'll give you an example, two years ago, a movie called "Star Wars" was made in the United States, and the movie was a huge success worldwide, achieving a box office of 770 million US dollars. The box office of the movie is staggering, but even more amazing is that the film has earned more than $1 billion in revenue through television rights, videotapes, toys, clothing, and other movie-related merchandise. ”

People in the film system were relatively calm when they heard about the success of "Star Wars," but others were stunned to hear that a movie had grossed more than $1 billion. The people of the Planning Commission began to calculate how many foreign projects they could bring in if they had such foreign exchange, and the Ministry of Finance began to calculate how much funds they could allot.

This number is so staggering that some people find it hard to believe: "How is this possible?"

Xu Wangqiu said lightly: "It sounds incredible, but this is the truth." We have a misconception about movies that they can only earn money at the box office. American film companies are different in that they have a complete industrial chain. A movie is like the front of a train, it may not make money in itself, but it can make money through other links. At present, the income of American films can be roughly divided into three rounds, the box office of movies is the first round of income, the original soundtrack, videotapes, and television broadcast rights are the second round of income, and the derivative products related to movies, such as clothing and toys, constitute the third round of income. Among them, the profits of the second and third rounds of revenue are very large, and may even exceed the box office revenue. This is the case of the "Star Wars" I just mentioned, where the spin-off revenue is higher than the box office. ”

Xu Wangqiu nodded when he saw everyone, and continued: "Warner Pictures in the United States, the annual revenue last year was 2.6 billion US dollars, of which the revenue from movies was only 328 million US dollars, and Disney's income was 2.3 billion yuan, of which the film income was only 160 million yuan. Take Disney as an example, Disney doesn't make many movies, mainly cartoons. So how does it make money? It is to create cartoon characters that children like such as Mickey Mouse and Donald Duck through cartoons, and then sell related toys, books, souvenirs, clothing, etc., and build theme parks to attract tourists. Disney uses cartoons as a locomotive to drive revenue from toys, books, souvenirs, clothing, and theme parks.

Now Hollywood studios are moving in this direction, which is the future development trend of the film industry. The same applies to our country. In the past two years, the film studio and China Film Company have been in trouble over the issue of account sharing, and everyone is competing for account sharing, but few people think about how to broaden revenue channels, and everyone's eyes are on the box office. In fact, we also have a film studio similar to Disney, Modu Art Film Factory. Last year's "Nezha in the Sea" they filmed, how good it was! But how much money did they make? The purchase price of 700,000 yuan should not be much left after the cost is removed. In fact, they can learn from Disney, and after "Nezha and the Sea" comes out, they will develop corresponding toys and publish the book of "Nezha and the Sea". The Modu Art Film Studio has made so many cartoons, can it also build a theme park like Disney? It also makes cartoons, Disney earns $2.3 billion a year, and the Modu Art Film Studio only has ......?

Everyone present kept nodding their heads, and there was a feeling of sudden enlightenment.

Almost everyone has the same sentence in their hearts, it turns out that movies still have such a role, and it turns out that how can film studios do it.

If others were a little surprised, then Jiang Yiwei was completely shocked. He was keenly aware of the value of Xu Wangqiu's words, and realized that there may be a completely new economic theory behind this phenomenon.

Forty years later, the industry chain is a well-known word, especially in the film industry. If you don't talk about the industrial chain and the upstream and downstream links, you are embarrassed to say that you are engaged in movies.

However, the industrial chain theory has not yet been born, and even the word industrial chain has not yet appeared. It was not until the mid-to-late 90s that Chinese scholars noticed the phenomenon of industrial chain and began to study industrial chain, and then the theory of industrial chain gradually heated up and became a hot spot in industrial economics and management research.

Now that Xu Wangqiu has moved out the industrial chain, how can this not make Jiang Yiwei feel shocked.

Jiang Yiwei felt that this thing was very important, movies have an industrial chain, and other industries also have industrial chains, since movies can be done like this, can other industries also be done like this, and couldn't help but say: "How do you know this?"

"Newspapers. Xu Wangqiu was prepared for this and said calmly, "I remember that the People's Daily said this problem when it criticized "Star Wars", and the article said that "Star Wars" expanded from movies to television, records, recordings, clothing, toys and other industries. At that time, I was thinking about the film industry, and I thought Star Wars was very interesting, so I did some research. I find that this is not an isolated phenomenon, and this is true of many American films. Several major film companies in the United States are transitioning to this model, using movies as the leading role to make high profits through toys, books, clothing, and numerous derivatives. ”

Jiang Yiwei nodded slightly, thinking that there were many people who saw the "People's Daily" article, but only this kid noticed it, this kid is really a talent, with surprising insight!

Xu Wangqiu continued: "When we engage in a film export company, we should take Hollywood as a learning object and build a company with a complete industrial chain of film production, film screening, and film derivatives development. The integration of the Input and Output Office, Southern Pictures, Changfengxin, and other overseas institutions is motivated by this consideration. The export company's head office in China is responsible for the production of war films, costume films, and other large-scale films, while Chang Fengxin is responsible for the production of kung fu films, as well as fashion films, which are distributed overseas by Southern Pictures. After the export company has accumulated a certain amount of capital, it can enter the field of toys, books, clothing, theme parks, and even electronic products to create a complete industrial chain.

In the early 70s, Warner's revenue was almost more than $1 billion, and after 1976, the company's revenue skyrocketed. Because this year, Warner acquired the gaming company Atari for $28 million. They turned the company's hit movies into video games and distributed them worldwide. Warner's gaming revenue reached $600 million last year, making it the highest-grossing division of the entire Warner company. I see that the American media predict that in the next few years, Atari's revenue will grow explosively, possibly exceeding $2 billion, while Warner's revenue as a whole may reach $4 billion or even $5 billion.

It's very difficult for us to reach $45 billion, but I think it's possible to reach a tenth of Warner's time, which is $500 million, in 10 years. The industrial chain of movies is very long, and there are many related links, such as cameras, video recorders, and audio equipment, as long as you have the strength, you can do it. In the past two years, large-scale movie theaters have been renovated abroad, from single-hall cinemas to multiplex cinemas. If we are renovating a movie theater, do we have to change the equipment? Like a chair or something, can we do it? There is no technical difficulty in the chair, our price is definitely cheaper than that of the West, and we definitely have an advantage in competition. Film is a big industry, there are many things that can be done, we stand at the top of the industrial chain, and it is easy to expand downstream and to the periphery. I really believe that the export company will be able to reach $500 million a year in 10 years."

In fact, Xu Wangqiu is saying that if the export company can go according to his expectations, it is possible that the income will exceed that of Warner. It's just that it sounds too exaggerated, and it can't be said that others are hard to believe, and they will only think that he is talking nonsense.

Xu Wangqiu looked at the people present, and saw that most of them were nodding, and couldn't help but smile: "To do this, there are two major premises, first, the export company must be operated as an enterprise, must operate independently, and be responsible for its own profits and losses. If, as is the case now, studios hand over most of their profits, then the company will not have enough funds to move into the midstream and downstream. Second, the film of the export company is released in China, and China Film must be divided according to the box office. This is important because Star Wars costs $11 million, which translates to 20 million yuan. According to the current settlement method, if we make such a movie, we can only get 900,000 yuan in China, and we must earn more than 19 million yuan overseas to return to the capital, which is too risky. If it can be split with China Film Company, it is possible to return to the cost by relying on the domestic market alone. With the support of the domestic market, we can rest assured that we can boldly enter overseas and earn foreign exchange for the country. This is a little immature idea of mine, and I would like to ask the leaders to correct it. ”

Everyone present looked at Xu Wangqiu in a daze and didn't speak, and many people had the feeling that they thought it was bronze, but they thought it was gold. Xu Wangqiu's ideas are extremely clear, very comprehensive, and forward-looking.

If you want to find a word to describe their feelings for Xu Wangqiu, it must be unfathomable.

Wang Lanxi was the first to come back to his senses, and when he saw that there was silence at the scene, he coughed lightly and said: "I think Wangqiu's suggestion is very good, we can't just look at the one acre and three points of land in front of us, we should have a strategic vision." We can't just focus on the movie itself, we can do other links. As he spoke, he glanced at Zhou Jianbang and said, "Old Zhou, tell me your opinion." ”

Zhou Jianbang smiled: "Aren't you changing your way and asking me to praise your students!"

Everyone burst into laughter when they heard this, and even Wang Lanxi burst out laughing.

After everyone laughed, Zhou Jianbang continued: "I support Wangqiu's idea. It doesn't take much investment to build a film export company, and the revenue can reach $500 million in ten years, and if you don't do it, it will be a crime against the people. ”

The people of the Ministry of Finance also strongly support projects that can earn foreign exchange: "In 78 years, we signed 7.8 billion US dollars of import contracts with foreign countries, and these contracts are all to be honored, and we do not have that much foreign exchange at all, and this problem is very serious." Since you can make more foreign exchange by making the export company bigger, there is nothing to say, just do it!"

People from the Planning Commission had the same view: "Taizong said that we should be bold and bold in making suggestions. Since the export company can make it bigger, then don't make a small fuss. ”

Subsequently, the bigwigs of the Propaganda Department and the Ministry of Culture expressed their support, and everyone felt that Xu Wangqiu's proposal was extremely large and operable. For such a project that can not only promote Chinese culture, but also foreign exchange, how can it be reasonable to reject it.

Ding Jianming was a hundred unwilling, but he couldn't say anything. The bigwigs present were all fascinated by the scene depicted by Xu Wangqiu, and whatever they said would not work, and now the overall situation has been decided.

I thought that I could turn the export company into a subsidiary of China Film, but I didn't expect this result. Ding Jianming was very disappointed and sighed slightly, Xu Wangqiu, this kid is really a powerful character, it's too difficult to deal with!