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The Internet Can't Kill Movies

via:博客园     time:2019/4/18 20:57:02     readed:202

Not long ago, Netflix, the world's largest streaming platform, announced its withdrawal from the Internet Association and turned to join the American Film Association as a veritable one.


Netflix's Rome won three Oscars

On the domestic side, Tencent Video, iqiyi, Youku (hereinafter referred to as "Youku")

For example, the popular movies of the Spring Festival Film "Flying Life" and "The King of New Comedy" were launched in a very short period of time, and began to implement the single-point payment model. According to people familiar with the matter, in less than a month, New Comedy King's online distribution revenue has exceeded its revenue from the sale of online copyright fees, which is a considerable revenue for the film.


"The King of New Comedy" in less than a month's revenue from online distribution has exceeded the revenue from the sale of online copyright fees.

But not everyone is happy to see this happening, the Internet.

But will the growth of Internet platform really kill the traditional film industry?

The answer may be no. With the change of audience consumption habits and the diversification of viewing demand, the Internet can not only fill the differentiated market, but also have the opportunity to feed back the traditional film and television industry upgrade. Yesterday, CEO Gong Yu, founder of iqiyi, was at the Beijing International Film Festival.

From Piracy to Symbiosis

Back more than a decade ago, video websites began to emerge around the world and ushered in rapid development, which also opened the prelude of the collision of film and Internet integration.


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A variety of internal and external stimuli, a time, a variety of domestic video sites everywhere. To this day, Gong Yu can still remember the great events of the industry at that time:

And at a time when the Internet video industry was booming, the domestic film market had just ushered in a period of rapid development after the reform of the cinema system, and "Hero" brought China into the era of domestic blockbusters with a box office score of two hundred and forty seven million nine hundred and ninety nine thousand nine hundred and ninety nine yuan. Then, such domestic films as "gathering number" and "if you are the one" are constantly setting box office records, and at the same time, they are also changing the box office record.

It's just that at the time, the movie line and the Internet were two parallel lines that didn't intersect, except that Tudou founder Wang Wei called it


Tudou founder Wang Wei called UGC content

At this time, the era of mobile Internet, BAT and other giants into the Internet video, users began to shift to online video platform. This change has led many practitioners and audiences to re-examine the relationship between video platforms and movies.

In the early days, the movie resources, especially the new movies, had strong attraction to the platform users, and became the main force of video platform traffic and attracting users for a while. Especially when new domestic films have joined the webcast army,

It's just that it's not going to last long, in what is known as


Tomb Piracy Notes ushered in the era of paying for video websites

Since then, the show has become the main force of the platform to motivate new paid members. According to public reports, the number of IQI members reached 80.7 million on the Q3 broadcasting of Yanxi Strategy last year, an increase of 13.5 million in a single quarter. And the Q3 broadcasted by Fuyang, Ruyi Zhuan and Shahai, Tencent's video membership also reached 82 million, an increase of 8 million in a single quarter.

Compared with the strong driving force of online drama, the role of film in the growing membership of video platforms has gradually weakened, except for a few popular content, the traffic is also far less than the drama ensemble. Gong Yu revealed:

In the face of the gradual decline of cinema films and the customized needs of customers, iqiyi put forward the concept of network big movies in 2014.


Big Internet Movie "Erlonghu Haoge is Brother in Life" in 2014

In iqiyi's senior vice president and iqiyi film president Yanning, the emergence of network movies, is the symbol of the further integration of film and the Internet.

And through the development of recent years, with the increasing intensity of policy regulation, the market tends to calm down, and speculators withdraw, online movies have also begun to develop towards excellence and specialization, and the ceiling of the division of accounts has also been from 30 million, 40 million has risen to the current 50 million (click on: net University, has begun to make more money than movies). Constantly refresh the record of the amount of sub-accounts behind the show, the University is also attractive to the platform members. And this will attract more creators and capital into the industry.


Douban score of 7.2 in the online movie "People Sleeping on the Sofa" launched by Ikeyi

At the same time, online copyright buying space is also widening. In recent years, excellent Aiteng has always been a variety of art films, awards season the most active film buyers, many in the cinema line do not have a chance to release good films, can use the video platform to meet with the audience

In addition to content, more obvious integration and transformation takes place offline. With the rise of Internet Ticketing platform, users no longer need to go to the cinema counter in person. Through various online ticketing platforms, they can buy seats and enjoy preferential treatment. Although the cinema believes that this change has robbed part of its business, it can not be ignored that the Chinese film industry can enter the fast lane of development after 2014 because of the promotion of ticket subsidy and publicity by the network platform.

In a word, in the 15 years from 2004 to now, Internet and film, which seem to have no intersection at all, are getting closer and closer. The continuous integration of Internet and film has become an irreversible trend.

How to win-win online and offline?

However, with the increasingly close integration of the Internet and movies, the worries of the traditional film and television industry also arise: under the circumstance of limited consumer time, will the rise of Internet platform and content divert the length of off-line viewing of movies from users, which will affect the box office revenue of cinemas and film makers, and will the traditional film and television companies be completely replaced one day?

Such concerns are not groundless. In the first quarter of 2019, the total box office was 18.6 billion yuan, down 8% from the same period last year; the total number of visitors was 479 million, down 14.5% from the same period last year; the average attendance rate was 12%, down 4.65 percentage points from the same period last year; since 2002, the first quarter of the Spring Festival included box office and the number of visitors declined for the first time. Affected by this, including Ray, Huayi, many film and television companies'performance forecasts show that the first quarter net profit will decline considerably.

And compared with the traditional film and television industry struggle, the development of video sites is getting better and better. According to the latest membership data released by Tencent Video and iqiyi, both platforms have paid more than 80 million members. According to the relevant data, the market size of the network video industry in 2018 has reached 200 billion, of which the market size of paid content has reached 53.6 billion, which is almost the same as the total box office of 61 billion in 2018.

There is a strong contrast between the rise and fall, but is the traditional film and television industry and the Internet really incompatible?

As a veteran of the traditional film and television industry, Wang Zhonglei, who has been engaged for more than 20 years, does not see it this way. Although his day-to-day job is to deal with cinemas and theaters, he is happy to choose to watch movies on the Internet at home when he comes across movies that are suitable for watching on his own.


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In fact, the plight of the current box office market is not so much the crime of the Internet as the pain and illness of the industry.

Because upstream enterprises rely too much on pure box office revenue, they can only hope in big-ticket period, which results in large-ticket period movies piled up and diverted box office. Usually, the empty window period of movies is bigger and the overall market performance is not good. While the revenue source of cinemas is single, homogenization phenomenon is obvious and the operating ability needs to be improved, so that they can not really retain users, and can only rely on them. Short-sighted behavior such as large-scale price increase to make profits in order to survive.

The overall profit structure of the industry is unhealthy, resulting in the supply of content, watching the experience and so on can not keep up with, plus the demographic dividend has been exhausted, the box office market growth slowdown is reasonable. Gong Yu said bluntly at the forum:

Whether in terms of timing or motivation, the further integration of the Internet and movies will become a reality. But how to achieve such a state?

In the monetization of upstream companies, in addition to box office, there should be more room for exploration. From the experience of Europe, America, Japan and other countries, the copyright revenue of a movie outside the cinema is about 1.8 times the box office revenue, that is, more than 60% of the movie revenue is not from the cinema, but online or DVD. But in China, Internet copyright revenue only accounts for less than 20% of the total revenue of film and television companies.


Netflix was boycotted at Cannes Film Festival

Therefore, if we want to achieve more benign cooperation with upstream companies, instead of purchasing only by subsidies or intensifying competition, Internet companies must provide more monetization means for traditional film enterprises and establish a benign industrial chain and ecosystem. In response, some practitioners told Dudu Eye that the single payment model that YouAiteng was trying before would probably be used in more films in the future. In addition, if we can take advantage of the advantages of the Internet in big data and retail channels to open up the derivatives market, it will also be of great benefit to enrich the upstream profit model.

Once upstream enterprises no longer rely on box office as a single source of income, they have the opportunity to have more choices in production selection and filing arrangement, which can effectively avoid the problems of film clustering and homogenization of type and content. Especially if this part of the revenue can feed back to the upstream, or even act on the upgrade of content, to promote the film and television companies to create more competitive content.

The integration and collaboration of upstream and Internet are also related to the change and development of downstream industries.

Although online viewing can meet the audience's convenience, low-cost and other needs, but audio-visual experience, social needs, and so on, rely on a small mobile screen is still far from being achieved. So if you can

Of course, just doing this is not enough to reverse the disadvantage of cinemas in the current industrial environment. Poisonous eyes have mentioned many times before that if cinemas want to survive, differentiated services and more added value are the key. Participants generally believed that the industry model of offline cinema would change in the future, such as the comprehensive upgrading of VR equipment or audio equipment and more value-added services.


Inception Space VR Cinema

And in the exploration of possibilities, there is also the possibility of resonance between downstream and the Internet. In recent years, Ali Pictures has successively launched Phoenix Cloud Intelligence system, Ali Fish, etc., to assist and upgrade the retail channels, film arrangement mode and derivatives sales of cinemas. Li Jie thinks, offline market wants to grow, must experience off-line entrance service to achieve extreme.

In the past few years, many practitioners have asserted that the existing cinema model will disappear because of the emergence of the Internet. Gong Yu admitted that he also had doubts about the development of the cinema model, but today it seems that the idea at the time was purely pure.

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