has about 200-300 projects on hand through various channels. On average, almost one third of the projects that flow in the domestic film market have been viewed. A total of 12 investment projects in 2 years, 8 movies, 4 TV series. There are gains and losses in the process of film investment, so I want to briefly talk about some of my views on film investment in recent years. More specifically, how do we invest in movies?
1. Film and television investment
(1) Definition: Divided into 3 categories
film and television project investment: project direct investment
film and television company investment: equity investment
film and television financial investment: stocks, funds, etc.
(2) Investment method (direct project investment) Example):
fixed investment: equivalent to "borrowing money", the annualized return is between 10%-15%, with strict guarantee conditions. The investor has the right of signature (or none), and no copyright. Project investment of pure financial nature.
Venture Capital: Most of the film and television projects are based on venture capital, with copyright revenue sharing and market risk sharing
Others: investment on behalf of capital, "capital" means resources, for example, we have theater resources, and control the theater Compared with the national market, the line-arrangement rate rises by x%, and the project enjoys x% of the project’s box office revenue split or the right to sign.
III. Film and television investment process
Note: Film and television project investment process
The business workflow of film and television investment capital projects is: early stage of the project (preliminary review, project approval) → mid-project (verification, decision-making) → late project (supervision, summary) specific business work The process is as follows:
(1) early stage of the project
1. Project collection
2. Project screening project introduction materials (ppt, video materials, etc.), confidentiality agreement and other documents;
3. Project establishment project establishment form (preparatory meeting)
(2) project Mid-term
4. Project review due diligence report, script evaluation comments
5. Post-meeting session issue application form, issue statement, investment statement
6. Negotiation and signing of project contracts and related attachments
7. Pre-review and final review of risk control links; contract approval, project due diligence Reports and risk control materials, etc.
8. Investment implementation project signing, financial process
(3) late project
9. Tracking management of project implementation supervision and risk control
10. Summarizing and evaluating post-investment summary
11. Organizing and filing (project information, due diligence Investigation reports, risk control materials, project contracts and attachments, business licenses, etc.)
4. Investment stage
The investment cycle of film and television projects is relatively long, and it will take 1.5-2 years for the film project to go from preparation to final settlement. TV drama projects The longer period is mainly due to the uncertainty of the platform schedule and the long period of payment return, which is often between 2-3 years, and even longer is a common occurrence. Due to the periodicity of investment in film and television projects, if you simply regard a film and television project as a product project, divide its financing stage into angel round, round A, round B, and pre-IPO windows for entry and exit. The incubation and development capital of the VC and A rounds is still scarce. The cost requirements of these two rounds are not high, and there is relatively no premium. In fact, it is very suitable for foreign capital to operate in the form of sunshine private placement, and through the subsequent B round (film production stage investment) or Pre-IPO (film distribution) Phase investment) was withdrawn. Operating the financing of a film and television project in this way can divide the long film and television investment cycle into several segments, so as to provide investors with different investment preferences with investment opportunities that adapt to the investment amount and investment cycle. It is very suitable for the industry. Foreign capital enters an entry point for film investment. How to judge when
is investing in a film and television project? After several years of exploration, a set of evaluation methods for film and television project investment system has been formed. During the project evaluation process, eight references including director, actor, producer, screenwriter, type, schedule, production company, and distribution company will be used. The basic variables construct a systematic evaluation model, which gradually improves the professionalism and accuracy of project investment judgments through comprehensive comparison. The specific evaluation content can refer to the following evaluation survey report, which basically covers the content of the evaluation survey.
Data from the National Film Bureau show that the domestic box office market in the first quarter of this yearThe field has reached 20.218 billion yuan, surpassing North America to become the world's largest film market. However, looking back on the equity investment industry’s investment in the cultural media sector, especially the film and television sector in the past year, we will find that after the 2015 M&A boom and 2016 policy tightening, investment and financing in the cultural media market in 2017 became more rational. The most important point of
film and television investment is to maintain rational decision-making in the face of perceptual cultural scenes. Stars and spotlights are very lively, but whether this is an investment business still needs to be considered.
In 2009, Liberty Capital invested in Great Wall Film and television, and it withdrew after six years to get a 40-fold return. In 2013, Liberty Capital once again crushed Happy Twist. Happy Twice has subsequently produced films such as "Charlotte's Annoyance" and "Shameful Iron Fist". Currently, Liberty Capital has received about 20 to 30 times the book return. We will now look at film and television production companies very carefully. First, there have been many listed film and television companies in the secondary market; second, equity investment focuses on buying low and selling high, but it is difficult to invest in good film and television companies at preferential prices.
Although the investment of film and television production companies is not the current investment focus of Datai, we are also continuing to pay attention. We will pay more attention to the application of new technologies such as big data and artificial intelligence in the film and television industry. For example, Taomeng has strong big data capabilities and has a deeper understanding of the needs of the audience. It will use the results of big data analysis to help make The decision-making of film and television production
In this issue, the editor will briefly explain film and television investment. Welcome everyone to consult. If you don't understand, you can privately trust me!
