Huayu started as a substitute director

Chapter 602: The Opponent is Too Strong
While Bona is undergoing privatization, the films and TV shows in Bona's copyright library are also being launched on the Chang'e Video Content Library one after another, according to a previously signed agreement.

Put all the movies and TV shows in Bona’s copyright library on Chang’e Video.

Not to mention, Bona’s copyright library has accumulated a large number of excellent Hong Kong films and blockbusters.

For example, "Overheard" series, "The Warlords", "Red Cliff", "Flying Swords of Dragon Gate", "The Grandmaster", "Shanghai Grand", "Flash Point", "A Simple Life", "From Macau", "The Siege of the City", "The Taking of Tiger Mountain", "CJ7", etc.

There are hundreds of such movies, big and small, and most of them are well-known movies that can be watched repeatedly.

After all, from 2000 to the present, under the leadership of Zuoshandiao, domestic film and television have been producing many blockbuster masterpieces.

It is not like the era in recent years when all kinds of sketch movies and variety shows can be accepted and get high box office.

Although the box office was not very good at that time, the production and quality of the films were higher than they are now. Although there were many bad films at that time, the atmosphere was still good.

Looking at the film and television copyrights that Bona has accumulated over the years, we can see how deeply Bona is tied to the team in Hong Kong. It is basically supported by Hong Kong films.

If someone else were to take charge of Bona, it would definitely lose its share in Hong Kong. It would not work for Fang Hong to take charge, even if he was reborn.

Because he doesn't have the same network of connections as Fatty Yu, nor does he have the energy to copy all Hong Kong films, who could still create new ones after copying them.

Those big Hong Kong directors still have this ability.

Fatty Yu has accumulated connections and business experience over more than ten years, and has squeezed out local companies like Emperor Entertainment Group.

In fact, Fatty Yu is very sociable and he has a good relationship with all the filmmakers in Hong Kong.

Fang Hong cannot deal with this kind of social relationship, he always relies on force. But Hong Kong does not rely on force. There are barriers, and people there also have preferential treatment and choices.

Not only he can't handle it, no one else can handle it. Huayi is such a big company, but it doesn't have as much reputation as Bona in the Hong Kong film industry.

Let me put it this way, if Bonami had not taken the wrong path in its IPO, it would have had difficulty in raising funds, and it would have wasted decades in returning to the A-share market.

If the two companies were listed on the A-share market in 09 and 10 respectively, Bona would definitely be ahead of Huayi.

Bona lost almost ten years!

Although Bona relies on Hong Kong filmmakers, it never puts all its eggs in one basket, but instead collaborates with directors in a diversified manner.

Huayi only has one brand, Feng Pants. Without Feng Pants, it would be in trouble immediately, so not everyone can run Bona.

Of course, Bona not only invests in and produces films in Hong Kong, but also invests in many films in mainland China, such as "The Peacock" and "The Sun Also Rises".

It’s just that it uses multiple different branches to invest, produce and distribute, and Bona has many branches.

Yutu does not have the accumulation and historical sedimentation like Bona. After all, it has only been five or six years since it started in 10.

All of Bona’s copyrights are listed on Chang’e Video either in a distributed or exclusive manner.

The reason why it can only be distributed is that some film and television copyrights are not exclusive to Bona, some are also owned by China Film or other film and television companies, so they can only be distributed to Chang'e Video.

These film and television works will also be open to Bilibili for slicing and to Douyin for secondary creation of short videos.

After the expiration of Bona’s exclusive film and television copyrights on other platforms, they will no longer be distributed to third parties. All of them will be exclusively owned by Chang'e Video, and of course you have to pay for it.

The current competition between video platforms is a competition for exclusivity and high-quality content. It will also be the same in the future. If I have something that you don’t, users will be attracted to you and squeeze out other companies.

Sohu, Baofeng Video, PPTV and other popular video platforms were slowly squeezed out in this way. Insufficient funds and excessive investment can easily lead to a break in the capital chain.

LeEco and Baofeng Video are on the decline due to broken capital chains. Without investment, insufficient content and loss of users due to copyright regulations, they are doomed to fail.

So doing this without money is a vicious cycle!
Youku also went downhill later. After Youku was acquired by Alibaba, a smart person believed that Youku was losing money because it gave creators too much share.

So they made drastic reforms, almost cutting Youku's broadcast revenue, doubling the length of pre-film ads to 1 minute and 30 seconds, forcing users to become members.

UC was also killed by the intervention of Alibaba people, otherwise there would be no Toutiao at all.

It’s because the opponent is too weak, there’s nothing I can do!

Bona's acquisition of copyrights of hundreds of films and TV series, all of which were added to the Chang'e Video content library, not only shook the film and television industry, but also caused some reshuffles in the video platform landscape.

As the content of those small video platforms decreases, it will become more difficult for them to survive, which will effectively force them out of the market.

The concentration of high-quality content at the top is itself a form of survival of the fittest, a major reshuffle, and Fang Hong simply facilitated the reshuffle in advance.

It also prompted Alibaba, Tencent, and Baidu to increase their investment in film and television copyright content. After all, Chang'e Video has the principal's layout and is coming in with great momentum.

With the strong support of Yutu and Bona, and the addition of a large amount of high-quality content, Chang'e Video now has over 1.5 million monthly active users, which puts them under a lot of pressure.

After all, there are only so many users, and if they go to other places, they will be less. And Chang'e Video has at least ten web dramas to fill in every month, so there is no worry about not being able to retain users.

This is thanks to Fang Hong’s online drama conference, novel copyright acquisition plan, and opening up copyrights to all film and television companies after acquiring Shanda Literature.

Now Chang'e Video and Yutu are cooperating with hundreds of small and medium-sized film and television companies.

Cooperate with Phoenix Film Group on "Psychological Crime"!
Cooperate with Huanrui and Guangguang on "Grave Robbers' Chronicles"!
Collaborate with Ciwen on "Darksiders 2"!
Collaborate with Le Yang on "Go Princess Go"!
Of course, there are also self-made ones, such as "School Beauty's Personal Bodyguard" and "Super Teacher".

There are also many people who buy copyrights and produce on their own without cooperating with anyone.

Yutu and Chang'e certainly cannot produce so many films. They do not have enough funds or the organizational capabilities. They can only cooperate on a large scale with small and medium-sized film and television companies.

These measures are Fang Hong's efforts to ensure that long videos gain a firm foothold in this competition as much as possible.

After all, he does not have the capital strength of BAT, so he uses a strategic approach.

Therefore, Jack Ma and Tony Ma always pay attention to the principal and regard him as their number one enemy in the field of entertainment. Apart from anything else, the principal is really thoughtful and has a long-term vision.

Don’t care about the momentary losses!

You should know that several divisions of Chang'e Technology are operating at a loss just to seize the market.

In addition to the actions in the film and television copyright library, Bona Cinemas will also form a Crystal Cinema chain with Yutu's cinemas.

Of course, this cinema is still owned by Bona, but with a unified brand and unified film schedule. Yutu already had 63 cinemas and 651 screens.

Gabona has 30 theaters with 250 screens!
Crystal United Imaging owns a total of 93 cinemas with 901 screens, either through franchised or self-built operations across the country, so this scale is well-established.

It was mainly because of the joining of Bona’s high-end cinemas that Crystal Imaging expanded to a certain scale.

However, Yutu has not stopped its actions and has targeted Shimao Cinema Line and Orange Sky Golden Harvest Cinemas. The former is estimated to be worth 10 billion yuan and the latter 30 billion yuan.

That means at least 40 billion yuan must be spent to acquire these two cinema chains. If these two cinema chains are acquired, Crystal United Imaging will be able to rank among the top ten and have further confidence.

The former is targeted by Wanda, while the latter is targeted by Dadi. If Yutu wants to own them, it will have to work hard, and it is simply a matter of money.

Yutu is rich now. After deducting various taxes and marketing costs, "Gravity" can get about 18 billion, or about 2.57 million US dollars.

When we did the global promotion, we agreed with Universal that we would split the revenue equally. However, their marketing expenses were high, easily costing hundreds of millions of dollars.

However, this is only the net box office revenue. Other copyright revenues, such as home DVD and Blu-ray, and TV copyright revenues, are around 3.2 million. Streaming copyright revenues are higher, around 7 million dollars, or 4.9 million.

Those derivative product licenses, theme parks, and music copyrights are negligible.

The copyright and box office revenue alone exceeded 26 billion. It’s easy to make money overseas. No wonder the country has always encouraged exports.

Add to that the box office revenue from Big Hero 6 and so on, which can be ignored as all was invested in the expansion and production of the animation department.

The big part comes from derivative licensing, with revenue of $5 million, but Universal also needs to make some fees, so they also make $5 million.

In other words, the revenue from derivative products of this animated film alone is worth 10 billion US dollars.

Excluding other film and television copyrights and box office revenue, Yutu now has enough cash flow to support the acquisition of cinemas.

And there is enough capacity to renovate and upgrade all cinemas.

This is the inevitable result of the Jade Rabbit that Fang Hong has been burning for so many years finally bearing fruit.

In addition, the Jade Rabbit Animation department will also release a film called "Minions" in July this year. It has also been in production for many years and involved a lot of investment.

"The Conjuring 2", recently produced by Filmmaker and distributed by Warner Bros., grossed $3.22 million worldwide.

Since it is an IP movie, making money is inevitable, and the Conjuring series already has a certain fixed audience group.

The net box office revenue of this movie was about 80 million US dollars, 10 million of which was given to Yu Xian, and the remaining 70 million was transferred to Liu Tianxian's account.

She had spent $2.59 million before, so she had to add in some money. The wedding, mortgage, household expenses and so on were all spent by her as a financial manager.

Now Yutu no longer needs blood transfusions from the flower growers, but Chang'e Technology is having some financial difficulties.

But it doesn’t matter, Tencent’s competitor “King of Glory” has updated a new version, adding PVE and development systems.

After losing its MOBA characteristics and launching the krypton gold point, players complained, and those players who had originally left slowly came back, and the popularity of live broadcasts and competitions also rose again.

Whether the revenue can go higher depends on the summer vacation, which is when students are on vacation.

(End of this chapter)