Slow down of film and TV series release and great pressure of de Stocking in the industry

category:Finance
 Slow down of film and TV series release and great pressure of de Stocking in the industry


This year, under the influence of the epidemic situation, the production of domestic film and television dramas has decreased, and the reserves of major broadcasting platforms are also relatively small. Some film and television companies take advantage of this opportunity to speed up the clearance of stock dramas, and increase investment in new dramas to seize the dividends of this special period.

Wind data shows that the inventory of A-share film and television companies has remained at a high level since 2017. In 2019, the inventory of A-share film and television companies will reach 18.4 billion yuan. In the first half of 2020, the inventory of A-share film and television companies will remain at a high level of 18.5 billion yuan.

The inventory time of many film and television companies is more than three years or even five years, which is obviously beyond the normal production cycle of film and television works. The situation of small and medium-sized film and television companies with weaker production and distribution capacity can be imagined.

Wind data shows that since 2017, the number of new third board film and television companies inventory has continued to rise. In 2016 and 2017, the inventory of the new third board film and television companies was 3.16 billion yuan and 5.37 billion yuan respectively, while in 2018 and 2019, the inventory had risen to 6.81 billion yuan and 7.11 billion yuan respectively.

The inventory of a film and television company includes raw materials (script and other expenses), products in preparation or shooting, and inventory goods that have been shot and issued with license. From the perspective of inventory goods, the inventory of 15 major A-share film and television companies will reach 7.05 billion yuan by the end of 2019, while by the end of June this year, the number has dropped slightly to 6.88 billion yuan.

As for the reasons for the high inventory, some film and television companies said that on the one hand, the film and television industry is facing policy adjustment and management upgrading, and the remake drama, gongdou drama and other types of film and television works are strictly restricted; on the other hand, in recent years, the total output of the TV drama industry is greater than the broadcast volume, and a large number of plays can not be released or broadcast every year, and the single episode distribution income of TV series has decreased significantly The difficulty of issuing has increased, the progress of issuance has slowed down, and the inventory has increased.

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High inventory directly affects the capital turnover and brings pressure to the normal operation of film and television companies. In fact, as early as 2019, the number of new start-up projects of major film and television companies has decreased, and the industry has generally strengthened the efforts of inventory digestion and account recovery.

Since the beginning of this year, the production of film and television plays has been stagnated for a long time due to the impact of the epidemic. In addition, in the first half of this year, the number of domestic TV dramas approved for distribution is relatively small, and the TV series to be broadcast on various major platforms are also at a low level.

According to the information released by the State Administration of radio and television, in the first half of 2020, a total of 84 domestic TV dramas with 3325 episodes were produced and approved for distribution by various TV drama production institutions across the country, which is significantly less than that of the same period in 2019 with 108 and 4600 episodes. In this case, some film and television companies have improved the release rhythm of stock films and TV plays and accelerated the withdrawal of funds.

For example, in order to improve the performance fluctuation, the company has increased project reserves and actively promoted the listing of inventory dramas; constellation magic mountain, with an inventory balance of nearly 300 million yuan, also said that it would further increase the distribution of stock films and TV series and speed up the inventory turnover speed.

There are also film and television companies to cooperate with the major network video platforms and film and television drama production enterprises, sell script copyright to film and television drama production enterprises, and jointly invest in film and television projects with film and television drama production enterprises by pricing script copyright, so as to accelerate script consumption and reduce the consumption of film and television drama production funds.

Of course, with the change of market wind direction and taste, it is more and more difficult to clean up inventory drama. In the current market, the development of new plays more in line with market demand. In particular, the online drama, online film, online variety show and other fields with short investment time and fast payback are favored by film and television companies.

Now the industry is in a hot situation. In the last two years, the industry was in a low ebb. In addition, due to the impact of the epidemic, there are fewer new dramas on the market. Many new dramas are prepared by various companies, and they are all seizing the dividend period of the broadcasting platform. Insiders told the securities times.

Although the circulation of new plays is not as large as before, the distribution cycle is generally accelerated, and many plays are shorter from the start to the broadcast than before. These people said that affected by the release situation in the previous two years, film and television companies are more concerned about policy and market risks, and are more inclined to promote the rapid broadcast of works.

High risk of inventory impairment

In recent years, the policy and market of the film and television industry have changed rapidly. If the development and distribution of film and television projects are not timely, it is likely to bring large impairment losses.

In the industry, there are often cases in which the works are not broadcast for a long time after development, but they are not popular in the market when they are broadcast, resulting in a sharp drop in income. Even some film and television companies have purchased scripts at high prices, and the copyright has expired before they can enter the development stage.

For example, Nanguang film and television, which has invested and produced such film and television works as Wu Wen Xi Dong and meeting Wang Lichuan, will have a large loss in 2019, mainly because it has made a large amount of inventory depreciation reserves for its inventory dramas. At the end of 2019, the book inventory balance of Nanguang film and television was 179 million yuan, and the inventory falling price reserve balance was 118 million yuan, and 102 million yuan was withdrawn in the current period.

According to the data, there are 25 films and TV plays in stock, including both self-made works and purchased works. Most of them are over 3 years old. The long-term backlog of several projects of Nanguang film and television is mainly affected by the rapid changes of policies and markets.

For example, the outsourcing of cangbishu novel adaptation rights, affected by the ancient restriction order and other factors, has withdrawn 10.62 million yuan of falling price reserves; although its participation in the love war has already obtained the public screening license, but affected by the tainted artists of the photographer, its distribution is hopeless, and Nanguang film and television has made full provision for its falling price. In addition, Nanguang film and television also has a number of purchased or self created scripts. As the market recognition of the corresponding themes tends to be low, the company thinks that it has neither adaptation value nor transfer value, so it has made full provision for falling price. Inventory impairment is not a patent of small and medium-sized film and television companies. According to the semi annual report of this year, A-share listed companies in the film and television industry have also withdrawn 2.5 billion yuan of inventory falling price reserves, and many of them have withdrawn more than 100 million yuan. Industry insiders told reporters that some of the earlier projects are difficult to promote. Now many film and television companies directly give up broadcasting and make one-off provision, focusing on the development of new plays. Compared with the past, todays film and television market is changing faster, which puts forward higher requirements for the production and distribution rhythm of film and television companies. Source: Securities Times editor in charge: Yang Bin_ NF4368

For example, the outsourcing of cangbishu novel adaptation rights, affected by the ancient restriction order and other factors, has withdrawn 10.62 million yuan of falling price reserves; although its participation in the love war has already obtained the public screening license, but affected by the tainted artists of the photographer, its distribution is hopeless, and Nanguang film and television has made full provision for its falling price.

In addition, Nanguang film and television also has a number of purchased or self created scripts. As the market recognition of the corresponding themes tends to be low, the company thinks that it has neither adaptation value nor transfer value, so it has made full provision for falling price.

Inventory impairment is not a patent of small and medium-sized film and television companies. According to the semi annual report of this year, A-share listed companies in the film and television industry have also withdrawn 2.5 billion yuan of inventory falling price reserves, and many of them have withdrawn more than 100 million yuan.