Chapter 435: Who is the Big Boss?
Arthur has always instilled his own investment preferences in Angela's investment advisors, and he is very fond of projects with stable performance, guaranteed returns, and low risk, which can continue to generate "after-sleep income".
Even if the initial investment will be very high at the beginning, as long as these initial investments can be fully recovered within 10 years, the rest is the so-called "net income"!
The cinema chain can continuously generate a stable income that is safe and long-lasting, and meets Arthur's long-term income standard!
Cinemas have always been the dominant industry in the entire film industry. And the big movie studios are propagating theaters because everyone wants their films to be released exclusively on the big screen for a while.
"Boss, this is Oudian's financial report, which can be seen to sell 90 million movie tickets every year, the main income comes from the box office income of film screenings, sales of goods, advertising sales, equipment sales, etc., the sales and sales ratio of each department is as follows, box office revenue is maintained at the level of 60% to 65%.
Although online streaming media or other service models have brought challenges to the development of cinemas, I believe that the advantages of cinemas cannot be replaced in the short term.
If we position the cinema chain as a cinema that only offers movie-watching, then we will be constantly threatened by other forms of entertainment or be replaced by other peers. If you want to run a cinema chain well, I think the value of the cinema chain is to provide an excellent social place for our users. ”
For Angela's suggestion, Arthur frowned and nodded, thinking that the small goal of the Celestial Empire would build a movie theater in his own shopping mall, the most important thing is to increase the retention time of customers.
"Indeed, if you can, make the cinema chain a complex cultural paradise where people can come together and experience a variety of different types of social entertainment needs, from movies, music, performances, games to food and drink.
With these differentiated features, you can increase the length of time your audience spends in the theater, which is another great sales opportunity for the theater.
At the same time, the online ticketing system can also be upgraded to attract moviegoers through targeted marketing strategies for young audiences. ”
Thinking of his movie-watching experience in his previous life, whether it was the preferential price of buying tickets on the APP, or the behavior of buying popcorn and drinks, Arthur also said these good ways.
And these words, when Angela heard it, her eyes couldn't help but light up, and she looked at Arthur with a lot of admiration, and continued to talk about the plan she had thought about all night last night.
"I looked at most of the Odian Group's cinemas and found that there were many old and difficult to make a profit, and my advice to these cinemas was not to close the ones that were not doing well, but to renovate and renovate them to the audience. Elevate audience expectations with larger screens, better seating systems, and an impressive entrance hall. ”
"Tsk, that's going to cost a lot of money. Arthur said helplessly.
"Boss, money must be spent, and not only on repairs, but also on raising more money, because once we step into the cinema industry, we can only move forward, not stand still. Angela's eyes flashed sharply, and her tone was very firm.
"Raise more money, you mean continuing the merger?" Arthur asked, raising his eyebrows slightly, a little uncertain.
"Yes, although the box office in the UK has been on an upward trend for three consecutive years, the pace of growth has been slow, and the growth of European films has come to a standstill compared to the explosive growth of the early days. That's the main driver that drives us to expand.
Whether it is the United Kingdom or North America, the cinema market is a mature market, very stable and unbreakable. According to a report by IHS, the global average annual number of movie attendances in 2009 showed that Iceland had about 4.3 times per person, Singapore 3.9 times per person, Australia 3.7 times per person, and the United States 3.5 times per person. UK 3.3 times per person.
Emerging markets such as Central Europe, Eastern Europe, and Asia certainly have great potential for high growth, but in my opinion, mature markets such as the UK, Western Europe, and North America still have value to be developed.
For cinemas, mergers and acquisitions or self-construction are the choices faced by many theaters. Compared with the high land price and location problems faced by the construction of new theaters, the acquisition of existing theaters can be a way to expand rapidly. Therefore, choosing to acquire existing theaters to achieve rapid expansion is our only way out in the future.
My suggestion is to choose to enter the local market in the form of acquiring the head cinema chain, eliminating the time of exploration and polishing in the local market, and at the same time injecting the unique brand management characteristics we have established. Unified brand, standardized output of business strategy. ”
"Hehe, I think since you have already thought about your future expansion strategy, then, you should also have a target to eye, right?" Arthur still has some understanding of his investment and financial advisor.
To be honest, Angela's talent and ability are really impeccable, if it weren't for her previous career failures, which led to her being questioned about her Ye Zi's integrity, which made her 'labeled' and isolated in the investment world, he might not have been able to admit her to the advisory group at a cheap price.
Picturehouses, one of the most successful art cinema brands in the UK, owns more than 20 art cinemas, some of which are renovations of old cinemas, and also has an art film production company... ”
"And the film production company, how much does it cost?" said Arthur's eyes lit up slightly, and he asked the question he was most concerned about.
"Hehe, I estimated that it only costs about 30 million pounds to eat it!" Angela smiled confidently, "However, to buy it, we have to move quickly, because Movie World Group is also eyeing it, so I think we can buy Picturehouses first and then Odian Cinemas." ”
"Movie World Group, what's the matter?" Arthur asked, raising an eyebrow slightly.
"Cinema World Group was founded in the UK in 1995 by American Steve Wiener with the support of private equity funds. In May 2007, it was listed in London, becoming the first listed cinema company in the UK. Currently ranked third, it has great ambitions and has been expanding through mergers and acquisitions.
It is worth noting that in the past, only the six major Hollywood production companies in the United States had the ability to distribute films globally, and if we complete the integration of Odian Cinemas and acquire a North American theater chain, we may become the only non-American company with the ability to distribute films globally in the future by mastering the terminal channels. Angela looked at the young boss with bright eyes and said the ultimate goal of her plan.
And this ultimate goal also made Arthur excited, if this plan is really completed, then he will become a pivotal figure in the global entertainment industry, and become the most powerful group of people in the entertainment industry, so those stars still don't obediently open the door to greet him?