Movie theater endure 2020: where is the inevitable source of film industry reshuffle?

category:Internet
 Movie theater endure 2020: where is the inevitable source of film industry reshuffle?


On August 8, the State Council made it clear that closed entertainment and leisure places such as cinemas and theaters could be opened by appointment, flow restriction and other means, which means that the closing period of more than 100 days is finally over.

On April 14, the Ministry of finance, the State Administration of Taxation and the state film Administration jointly issued tax and special fund policies to support the development of the film industry.

For Lufeng, he will no longer need to pay the value-added tax and cultural construction fee for the whole year 2020 for the movie screening income, and no longer need to pay the special fund for the development of the national film industry before August 31 this year.

In the year of normal operation, these tax exemptions will save him more than 100000 yuan, but 2020 is destined to be an extraordinary year. Since the store was closed on January 24, the movie city he is responsible for has been closed for more than 100 days.

At the end of April, the state film administration estimated that due to the impact of the epidemic, the annual box office loss would exceed 30 billion yuan, and Lu Huo would not be spared in the industrial chain.

The first thing after the store was closed on New Years Eve was to clear the 120000 yuan snacks and drinks that had been prepared before the Spring Festival. In addition to 2000 yuan of cola and other drinks that could be returned, chips and popcorn and other snacks had to be digested by the cinema.

Tiktok, who saved 150 yuan per day, sold a discount of 2.5 yuan of popcorn sold by his friends voice account. The price of the popcorn was 88 yuan, and the cost of the purchase was about 160 yuan. The price of the selling of the cup was 400 yuan at the theater.

However, even if he gave a 50% discount on the purchase price, the two live shows brought little profit, so he had to send several copies to the friends who came to watch the show. Now, the half year old popcorn is out of date, and its all piled up in the storage room of the cinema. When we open, we can only throw it all away..

In addition to live sales, many cinemas will also try to sell tickets in advance or take photos at the cinema venue to generate revenue. However, these methods are not applicable to the cinema in Inner Mongolia.

Our city has a population of more than 100000, which is quite difficult to do. Mr. Lu admitted that the number of screens in his city was a little more than the number of people watching movies. There are three cinemas and 11 screens in our city. The proportion is close to that of developed cities in the south, with one screen for every 10000 people. In terms of the habit of watching movies in this small inland city, the supply of 11 screens is obviously over demand.

However, non anti epidemic enterprises are unable to apply for special fund loans, fail to meet the conditions of annual tax payment of more than 80000 yuan, and fail to apply for return to work loans. That is to say, if the cinema with an annual turnover of more than 4 million yuan wants to borrow money, it can only mortgage the house.

Cash flow is tight, which is related to the income model of the cinema.

5% of the special funds for films and 3.3% of the taxes in the box office revenue of a film are directly deducted and paid. 43% of the remaining net box office revenue belongs to the producers, 57% to the cinemas and theaters, and the proportion of theaters and theaters sharing depends on the specific situation.

Take the example of China Film Theater joined by Lufeng, which can take 55% of the net box office, 2% for China Film Group as the theater side, and 43% for producers or distributors.

Like most theaters, the box office accounts for nearly 90% of the cinemas revenue. The cost mainly comes from the expenditure of rent, manpower and water and electricity equipment.

The joined China Film Theater has an initial investment of 6 million yuan, an annual rent of 300000 yuan, an employees salary of 700000 yuan, and a water, electricity and equipment maintenance of 300000 yuan. It was opened at the beginning of 2018. After a one-year training period, it just realized profit in 2019.

Loss and expansion

Wanda studios launched a 99 yuan special package, which includes three tickets and three barrels of popcorn. City tiktok in some cities opened live broadcasting products at the end of March, selling movie coupons, snacks, bags, drinks, and cultural derivatives. UME movie city launched a super package of 80 yuan, 4 movie tickets plus 4 popcorn tickets.

Compared with the disappearing box office, these self rescues are obviously a drop in the bucket. According to the first quarter performance report of this year, Wanda film lost 610 million yuan, while China film, cultural investment holding, Jinyi film and television, Hengdian film and television, and happy blue ocean all lost between 100 million yuan and 300 million yuan.

Under the loss, Wanda has not stopped expanding.

The opportunity for the chain giants to annex and expand comes from the severe impact of the epidemic on the small and medium-sized cinemas, and an industry reshuffle is inevitable.

After 2015, the number of cinemas has increased sharply due to the policy support to encourage the development of cultural industry, as well as the financial subsidies for cinemas and cinemas. Industrial and commercial data show that from 2015 to 2019, the number of newly registered cinemas has remained at about 3000 every year. But in 2019, 1435 closures were written off.

Take Tianjin Branch of ICI as an example. When it opened in 2011, there were almost no other cinemas within 3 kilometers around. However, since 2015, there have been many cinemas within 1 kilometer, and now the survival of each is a problem.

Wang Huiwu confirmed this point. In recent years, the growth rate of national screen is higher than that of box office, and the output of single screen in the industry has declined. In recent years, a certain number of small and medium-sized cinemas have closed stores. This epidemic has increased the overall operating pressure of the theater industry, objectively accelerated the clearance of low box office and low efficiency tail cinemas, and will promote the industry concentration and the arrival of single screen turning point.

Where does the source come from

The 2020 Spring Festival, which was originally scheduled to release popular films such as Chinese womens Volleyball, Chinatown detective 3 and Jiang Ziya, was once a promising opportunity for the film and television industry to recover. 2019 is the winter of film and television. The industry is looking forward to the Spring Festival this year. Its known as a fight between gods and immortals, but now theres nothing left. A cinema manager in Tianjin sighs.

Missed the spring festival film which can contribute 30% of the box office of the whole year, and all theater managers do not have much expectation for the coming summer film after returning to work, because the film source problem is immediately placed in front of each theater.

The cinema industry is very special. Unlike restaurants and retail, it can make money by opening the door and preparing products. What movies are broadcast in the cinema will decide how many audiences will come to see them, but what is broadcast is not up to the cinema itself. It has to be arranged by the audience. Wu Yin, head of the Tianjin store marketing department of ICI, pointed out the difficulties after the opening of the cinema. There were not many audiences in the early stage, so the film would not be scheduled for big production, and the films with appeal would not be released. How could the audience come?

Zeng Maojun, Wandas film president, also said that there should be excellent film source guarantee when answering the biggest difficulties faced by the cinemas resumption of production. He said that the film bureau is actively organizing the remake of domestic and foreign classic films and the release of new films to increase the film supply.

On March 17, when some cinemas in China returned to work for a short time, the list of remakes of Beijing Film Distribution Branch of China Film Co., Ltd. included films such as Chinese partner, Wolf Totem, war wolf 2, wandering earth and how to be a home. Since then, many classic films at home and abroad have also been reported.

China distribution staff, one of the 2020 Oscar winning films, told economic watch that this years Oscar film rate is likely to be released this year, but the possibility of extending to next years spring festival film is not ruled out for the seven films in the Spring Festival, especially the head films. Oscar films actually have a relatively fixed audience, which is slightly narrow compared with commercial films..

The most box office appeal is the Spring Festival films, but in order to recover the cost, the big production will not be released rashly. According to Lu Huo, if the big production films are scheduled for the Spring Festival 2021, the cinemas will try to survive the winter in 2020. And the remakes of wolf 2 and Nezha have been shown on the screen for a round, and movies with a large number of resources on the video website have a question mark on how attractive it is for the audience to enter the cinema. According to a survey conducted by the cats Eye Research Institute, 30% of the audience said that as long as the cinema is open, they will go to the cinema to watch movies, and more than 60% of the audience chose to wait for the official announcement of the end of the epidemic before entering the cinema. However, for theaters, most of the box office of the remakes is 100% owned by the theaters, and the profit from the producers is also good news. (at the request of the interviewee, Lu Huo is a pseudonym) source of this article: economic observation network, editor in charge: Ding Guangsheng, Yu nt1941

The most box office appeal is the Spring Festival films, but in order to recover the cost, the big production will not be released rashly. According to Lu Huo, if the big production films are scheduled for the Spring Festival 2021, the cinemas will try to survive the winter in 2020.

And the remakes of wolf 2 and Nezha have been shown on the screen for a round, and movies with a large number of resources on the video website have a question mark on how attractive it is for the audience to enter the cinema.

According to a survey conducted by the cats Eye Research Institute, 30% of the audience said that as long as the cinema is open, they will go to the cinema to watch movies, and more than 60% of the audience chose to wait for the official announcement of the end of the epidemic before entering the cinema.