CHINA DAILY | HONG KONG EDITION Friday, October 30, 2020 | 15 BUSINESSFOCUS
Entertainment sphere eyes digital advances as recovery gains speed
By FAN FEIFEI [email protected] Entertainment and The total revenue of China’s entertainment and media indus media companies try is estimated to be around $331 are encouraged to billion this year, down 2.8 per cent on a yearly basis, with the embrace new sector likely to experience a business models to Vshaped rebound as the COVID 19 gradually recedes, according cater to changes in to a new report from global consumer behavior accounting firm PwC. The compound annual growth and increase rate of the country’s entertain revenue growth.” ment and media industry will reach 5.2 percent from 2020 to Aileen Mo, PwC’s Chinese mainland entertainment and 2024, which is higher than the media industry partner global rate of 5.1 percent, the report said. Aileen Mo, PwC Chinese main changed their distribution mod land entertainment and media els to directly release on OTT industry partner, said the COV streaming media platforms and ID19 pandemic is changing how are exploring online premiere consumers behave across every opportunities and partnering aspect of their lives and accelerat with technology companies. ing an ongoing shift from tradi Emily Liu, a PwC Chinese tional to digital channels. mainland entertainment and For instance, during the out media industry partner, said: break consumers increasingly “We expect that changes in the watch new movies through over movie distribution model will thetop (OTT) video platforms, affect the future strategic focus Pedestrians pass a poster for the film The Eight Hundred in Shanghai on Sept 21. WANG GANG / FOR CHINA DAILY enjoy live concerts or virtual real and profit model of the movie ity performances online and par industry.” ticipate in online events, Mo said. In addition, the report estimat “Entertainment and media ed that Chinese video games will companies are encouraged to generate $31.2 billion in revenue embrace new business models to in 2020. The figure is expected to cater to changes in consumer reach as high as $38.5 billion by Cinemas hum with activity as behavior and increase revenue 2024, with a compound annual growth,” Mo added. growth rate of 5.4 percent from The report said China’s OTT 2020 to 2024. video market will become Among them, social or casual increasingly mature from 2020 games, which are gaining traction viewers return in numbers to 2024, with compound annual among females and retirees, have growth rate reaching 12.2 per a stable market share. During the cent, and revenue is expected to pandemic period, players estab Sector poised to reduce losses as contagion increasingly comes under control reach about $16.1 billion by lished social gaming communi 2024. ties, which increase user Due to the impact of the pan stickiness, allowing them to By LIU YUKUN Detective Chinatown 2, which raked Country and future film releases and over 3.92 billion yuan in box demic, some film distributors become more inclined to play the [email protected] in boxoffice revenue of nearly 3.4 will boost profits in the fourth quar office revenue, becoming the sec have skipped theatrical releases same games their peers play. billion yuan in 2018. The company ter. To date, Beijing Jingxi still has ond highestgrossing National Day and gone directly to streaming Furthermore, China’s esports Major film studios in China are said in a recent report that its busi 15 films in preparation or scheduled holiday for the sector in Chinese media. It is expected that China’s revenue surpassed the United expected to narrow their third ness operations in all sectors are for production and release. history. subscriptionbased videoonde States and South Korea in 2019, quarter losses as boxoffice revenue expected to recover to normal levels Enlight Media, the production The Golden Week also marked a mand revenue will exceed cine becoming the world’s largest surged after cinemas resumed oper in the fourth quarter. company of Jiang Ziya: Legend of turning point for Chinese film com ma boxoffice revenue in 2020 for esports market. It is estimated ations in the postpandemic era. Another cinema chain giant Deification — which had the sec panies as a majority, especially the first time. that in 2020, China’s total esports Wanda Film, which manages 656 Guangzhou Jinyi Media Corp ondhighest boxoffice receipts dur those profiting from boxoffice hits, As various platforms provide revenue will further rise to cinemas and 5,806 screens world anticipates a loss of between 100 ing the recent extended holiday — are planning a full recovery in the users with more highquality ser approximately $410 million, the wide, is expecting a loss of between million yuan and 128 million yuan also earned an estimated 360 mil fourth quarter and next year. The vices and bundled membership report said. 380 million yuan ($56.9 million) in the third quarter, down from a lion yuan to 400 million yuan from situation of continuous losses due services, China’s videoonde “The unceasing advancement and 480 million yuan from the third loss of 153 million yuan in the first the blockbuster’s 1.46 billion yuan to COVID19 is expected to change mand market will maintain rapid of technology and infrastructure quarter, down from the loss of 600 quarter and 161 million yuan in the boxoffice revenue as of Oct 11. in the fourth quarter, said Chen growth. facilities, especially the launch of million yuan in the first quarter and second quarter. Enlight Media’s earnings from Shaofeng, a professor of culture and Meanwhile, the report estimat 5G, will continue to promote the 970 million yuan in the second As cinema companies expect bet Jiang Ziya might help the compa entertainment at Peking University. ed that due to the pandemic, Chi growth of China’s entertainment quarter. ter profits from soaring box office ny’s revenue in the fourth quarter Chen said further supportive pol na’s movie revenue will plummet and media industry as more The bottom line improvement for collections, film production studios surpass that of last year. In the icies from the government are also by 78.1 percent yearonyear to users are beginning to use high Wanda comes as domestic cinemas are also expecting business to pick fourth quarter of 2019, its revenue expected. Since the COVID19 out about $2.26 billion in 2020 and speed mobile data to access con under the company’s management up. was 368 million yuan. break, many local governments the number of moviegoers will tent, games or services,” said resumed screenings from July 20 Beijing Jingxi Culture and Tour This year’s extended National have rolled out a series of suppor drop from 1.8 billion in 2019 to Wilson Chow, head of PwC’s glob under government guidelines, ism Co Ltd, a producer of My People, Day holiday was truly a “Golden tive measures that have helped the just 400 million. al Technology, Media & Telecom while surging visits to cinemas also My Country, the biggest box office Week” for Chinese film companies. film sector recovery. Although China’s cinema reve munications department. boosted box office receipts. winner during the just concluded About two weeks before the holiday, According to a report in Securi nue will rebound rapidly, with a Meanwhile, the impact of COV By Oct 15, China’s total box office combined National Day and Mid the industry regulator raised the ties Daily, China’s film industry is compound annual growth rate of ID19 has helped unleash growth revenue reached 12.95 billion yuan. Autumn Festival holiday, is expect cap on maximum seating capacity on the fast track to recovery and set 37.8 percent from 2020 to 2024, it potential of augmented reality Wanda Film expects further ed to earn up to 100 million yuan in from the previous 50 percent to 75 to return to a level equal to that will still take a longer time to and virtual reality technologies. recovery in profits as more of its revenue from the 1.87 billion yuan percent, starting from Sept 25, spur before the COVID19 pandemic in return to levels seen before the In addition, the polarization of films are scheduled for release soon, box office collections as of Oct 8. ring more visits to cinemas. the fourth quarter. The report said pandemic. In order to meet con technologies will impact the such as Detective Chinatown 3, The company said in a recent The eightday holiday saw more total boxoffice collections might sumer demand for home enter entertainment and media indus which follows the highly successful statement it hopes My People, My than 99 million visits to cinemas reach 20 billion yuan this year. tainment, film distributors have tries, Chow added. Internet companies turning to audiovisual businesses for continued growth
By LIU YUKUN largest market share. Total users of new midsized video sector to win lifestyles as well as new develop short video platforms reached 818 more users. ment of audiovisual media tech Huang Xinyi of Beijing was million as of June. Xigua President Ren Lifeng nologies, including more thrilled to see that her latest video Consulting agency QuestMobile announced at a recent forum that diversified forms of media com post depicting her friend’s weight said China has seen slower growth the company will spend at least 2 munication, more convenient pro loss campaign garnered over 2,000 in the number of internet users billion yuan ($299.6 million) to duction of media content and likes after just one night. and the time they spend on surfing sponsor content creators in its greatly expanded media commu “After so many attempts, finally online in recent years. However, midsized video sector. nication channels. Aside from there’s one that went viral. Since audiovisual products — especially Ren categorizes the sector as audiovisual companies like Xigua the COVID19 pandemic, I pro short videos — can gain more users having content between 1 minute and Bilibili, text and picture duced many videos on sharing within a limited market and to 30 minutes, most of which are based content creation companies platforms like Douyin. I thought if achieve continuous growth. For displayed through horizontal like Weibo and Zhihu are also others can get famous or win a for this reason, establishing audiovi screen shots, and involve more stepping up efforts to develop tune by posting videos, I can as sual related businesses has become costly professionally generated products to expand user bases. well,” the 29yearold office worker a new strategy for more internet content compared with short vid Zhihu, a Chinese Q&A forum said. companies. eos. Ren said midsized videos will similar to Quora, recently put for Huang is just one of many trying Tech giant Tencent Holdings see greater market share as users ward a plan to support its content their luck at the videoposting developed Weishi, a short video increasingly demand better quality creators to produce videos aside trade. Although more people are producing and sharing app, and content. Videosharing platform from text and pictures, and getting involved in outdoor activi invested in leading short video Bilibili is betting on cuttingedge announced 500 million yuan in ties as COVID19 is gradually con platform Kuaishou. In June, Wei A view of a livestreaming studio set up by Douyin during an exhibi technologies like 5G to achieve fur financial support for the plan. Wei tained in China, the online mob, Tencent’s cloudbased com tion in Fuzhou, Fujian province, on Sept 5. PROVIDED TO CHINA DAILY ther development. Bilibili CEO bo also launched videosharing audiovisual market continues to merce and marketing solutions Chen Rui said at the justconclud units to diversify its product port grow. unit, invested in short video pro ed China Internet Audio & Video folio. “Video platforms will play a According to a report released by ducing platform Clipworks. acquired Indian short video plat advertising revenue,” said Wei Convention that videos will play a larger role in people’s lives. Not the China Netcasting Services Alibaba Group Holding Ltd also form Vmate and invested in US Pengju, director of the Institute of greater role linking users with sce only will they provide audiences Association on Oct 13, as of June, boosted development of its video short video platform Vobile. Cultural Economics at the Central narios and services in the 5G era. with better quality content, but the online audiovisual audience products following the acquisition “China’s audiovisual market is University of Finance and Eco Liu Xin, chairman and general also have more functions like lives number in China had reached 901 of Youku and Tudou, and devel growing rapidly. But now many nomics in Beijing. Companies in manager of Migu, China Mobile’s treaming ecommerce, socializing million, an increase of 43.8 million oped its own video platform — video platforms are becoming the audiovisual sector are certainly digital content unit, said at the and even education. The outlook of from March. Among the various Luke. In recent years Alibaba has more and more similar to one aware of the challenges and are convention that the rapid devel the audiovisual market is huge,” segments of the online audiovisual stepped up efforts to develop the another which makes them more actively seeking solutions. The opment of 5G will lead to pro said Wei of the Central University industry, short videos have the overseas video market, and has challenging to user numbers and Xigua video app now targets the found changes in production and of Finance and Economics.