Can the dream of establishing a TV cinema chain by joining hands with Alibaba Gehua come true?

Can the dream of establishing a TV cinema chain by joining hands with Alibaba Gehua come true?

As the news that the American streaming video service provider Netflix is ​​entering China continues to gain momentum, and the news that Alibaba is about to enter the streaming video service field and launch a video website "TBO" that contains 90% paid content has been confirmed to be true, the concept of "TV theaters" in China has once again been reviewed and exposed.

However, unlike before, this time, Gehua Cable TV is no longer acting alone as a TV operator, but by joining hands with Alibaba, an Internet giant, and China Film Group, the only film company in mainland China that has the right to import films and the largest film production in China, to jointly develop the TV cinema business. The power of the alliance should not be underestimated . On December 23, 2014, Gehua Cable TV took the lead and jointly initiated and established the "China TV Cinema Alliance" with more than 30 cable TV network companies in provinces and cities across the country, including Shanghai Oriental Cable TV, Tianjin Cable TV, Chongqing Cable TV, Jiangsu Radio and Television Network, as well as China Film Group and Alibaba Pictures. At the beginning of the establishment of the alliance, its main goal was to shorten the "window period" of films from traditional cinemas to TV platforms through in-depth cooperation with film producers, distributors, and copyright holders, and to open up the second largest film distribution market outside traditional cinema chains, effectively extending the life cycle of films. As we all know, compared with the developed European and American markets, the income structure of the Chinese film industry is overly dependent on the box office revenue of traditional cinema chains, resulting in a significant lack of comprehensive income from "post-movie" such as TV cinema on demand. According to relevant statistics, in the current Chinese film market, traditional cinema revenue accounts for 90% of the total film revenue, while in the North American film market this figure is only 30%, and the remaining 70% comes from DVDs, single-film on-demand, monthly viewing, TV channel broadcasts and derivatives outside the cinema. The establishment of the "China TV Cinema Alliance" is mainly to open up the "post-movie" market represented by TV cinemas outside the traditional cinema market. Zhang Qiang, CEO of Alibaba Pictures, said that in the future, Alibaba Pictures will invest huge amounts of money to purchase film and television copyrights and invest in film and television production, so as to grasp the copyright advantages of film and television content, and place them on paid platforms such as TV cinemas for paid on-demand operations. In this regard, Alibaba Pictures has even prepared for a few years of losses. Of course, Alibaba Pictures also firmly believes that if box office, paid on-demand and product development are added, the scale of China's film market is expected to reach 200 billion yuan in the next eight years, and this will be a potential market with huge growth space. In addition, Alibaba also plans to implant 800 million registered Alipay users into the TV cinema platform, and use the existing payment capabilities and payment habits of these young Alipay users to create a suitable payment environment for the TV on-demand market. At the same time, it will also sell content derivatives other than movies through Taobao and Tmall. It can be seen that in addition to the strong call from Gehua Cable, the participation and support of China Film Group and Alibaba Pictures are indispensable for the rise of the TV cinema business. Imaginative TV cinema business In fact, as early as the beginning of 2014, Gehua Cable launched a "TV cinema" prototype product for watching movies at home for 5 yuan. This product opened the door to users' cognition of the TV cinema business through the method of "good movies + low prices + post-payment + watching at home". In March last year, the video website iQiyi also launched a "network movie" plan, aiming to achieve profitability of the "network cinema" model by pushing more new and fastest film and television content to the audience. In this regard, iQiyi CEO Gong Yu said: "The model of iQiyi's online cinema has further subdivided the domestic film industry. In the future, iQiyi will further increase its investment in the field of 'online big movies' and provide the most comprehensive viewing platform for all movie-loving audiences, exploring the win-win path of cooperation between online video and the film industry." In recent years, with the continuous extension of the physical cinema front and the fierce competition in the theater market, "watching movies" is no longer a slightly luxurious entertainment activity. Even if the ticket price continues to cater to the audience's consumption capacity, due to the limitations of time and place, there are still too many users who cannot enjoy the charm of movies through physical cinemas in time. And this may be the opportunity for success left to TV cinemas. In addition, the concentrated outbreak of the film market has also led to a large number of the latest films produced in large quantities. Due to cost, quality, schedule and other reasons, a large part of the films cannot be well displayed and played in physical cinemas, and TV cinemas are an important way for these films to be "resurrected" and realize their value. More importantly, compared with the physical cinema release period of no more than one month, the TV cinema that is not restricted by the schedule can give a film a longer window for realization. In the latest financial report of Netflix, a streaming video service provider, we can also find that Netflix currently has more than 60 million online users. This successful paid business model is the best template for the Chinese TV theater market. Shao Yiding, chairman and CEO of Youpengpule, said that based on the "TV theater" in the Internet TV screen, it is expected that the Internet TV screen will truly share commercial value with film distributors next year. Influenced by the Internet economy, TV screens may become the only Internet distribution window in the film distribution channel in the future, and the establishment of TV theaters will also grow rapidly like China's traditional physical theater distribution channels, and bring more monetization opportunities to the film market.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.

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