Chapter 60: Capital Invasion.
“Over the years, 4 of the top 10 box office films had been produced by Weibao Film and TV. They are the box office champion and their position cannot be shaken away.” Shi Liyou said, “Even if other film companies invested massively, they couldn’t defeat Weibao Film and TV in just a few days.”
“If we’re looking for a film company to challenge Weibao Film and TV, how about Yanhuang Film?” Chen Huan asked.
“Oh? Why do you think so?” Shi Liyou asked in surprise.
“Because of the capital!” Chen Huan bluntly said, “Look, the largest movie company, Weibao Film and TV, is only worth 10 billion US dollars but the 8th ranked private tech company is already worth 120 billion US dollar! If we put Weibao Film and TV amongst the country’s private companies, they can’t even rank in the top 100!”
“The many large groups wanted to become the best since their creation. With so many years of rising and hard work, there are not many improvements they could do in their main business. There would be no problem as long they don’t make any mistake”
“So they will try to expand their business and open into new industry to expand the wealth of their group. The entertainment industry expanded more in this era, wouldn’t it be a good choice to invest? Look at Yanhuang Film, the boss behind them is the ranked 4th Yanhuang Group!”
Ding Lun and Shi Liyou stared at each other for a second time tonight.
After a while, Ding Lun asked, “Chen Huan, who told you this?”
“This is my own thoughts. Can’t you see even such a simple thing?” Chen Huan said, “It’s not just the Yanhuang Group, didn’t the ranked 1st Shanhai Group created Shanhai.com that is ranked 2nd amongst the streaming services? If one saw that there are huge benefit that could increase the group influence and profit, wouldn’t those wealthy men support Zhen Rongrong?”
“There’s also Shine Technology, they are the number one in the streaming services and they had spread their influence all over Asia. Now they stabilized their position, they would look to better themselves and start to produce their own TV shows and even movies! At that time, the entire entertainment industry will be shocked when their company will be worth 120 billion US dollar!”
“This won’t necessarily the case.” Shi Liyou said and shook his head, “The most important in the industry are the professionals. Although they are very powerful in the new technologies sectors and networks sectors, the entertainment industry have their own rules. It’s not there has no outsiders that came in but they all accomplished nothing and left the industry with sullen faces.”
“That was before. Now those super rich people all killed through to the top and emerged from a pool of blood. Would they just pat their heads before going to the battle like those peasant entrepreneurs 30 years ago?” Chen Huan retorted, “The reason I said that Yanhuang Film could challenge Weibao Film and TV was because Qi Yiwen is a very calm and knowledgeable person.”
“Mm, That’s because he was originally from the management and liked this industry. He also went to multiple small companies to accumulate experiences.” Ding Lun added, “Before, he established Yanhuang Film and listed the company separately and got 40% of the shares, his net worth reached 3.2 billion US dollars and it isn’t something that anybody can do.”
“The point where he is strong at isn’t how fast he successfully listed Yanhuang Film but how organized his company structure is. He knows what his abilities are and his goals.” Chen Huan explained seriously, “Yanhuang film was created less than 10 years but look at how many cinema they had? 800! Weiba Film and TV only have 600! And they had been there for more than 30 years!”
“If it isn’t for Yanhuang Group being the largest real estate developer in China, Yanhuang Film certainly wouldn’t have so many good places to open cinemas.”
“But this is the power of capital. With a slight push, a company created 10 years ago was able to have a strong presence with its many cinemas and will be able to attract many directors, screenwriters and actors.”
“But Yanhuang Film’s current results aren’t very good.” Shi Liyou said, “Their overall results last year was only ranked 3rd and their revenue was far worse and 40% behind Weibao Film and TV.”
“That’s because they aren’t completely integrated yet.” Chen Huan said, “They haven’t found the right way to breakthrough but if Mr. Qi can find a way, they would rise and threaten Weibao Film and TV’s status.”
“What kind of breakthrough?” Shi Liyou asked in curiosity.
“I’m not a professional, how would I know?” Chen Huan said, “But you can see that Mr. Qi keep trying to find the way with much effort even if they were losing money.”
The two men nodded.
They didn’t expect Chen Huan to know about it and Shi Liyou was only asked subconsciously.
In reality, Chen Huan really knew about it.
Although the two words were different, there were also many similarities.
For example, this Yanhuang Group was similar to the Wanda Group from his world from all aspect and Qi Yiwen was like an enhanced version of the owner.
So obviously if Yanhuang Group wanted to succeed, they need to do two things.
The first was to use the utmost effort to establish and purchase a cinema distribution channel. After becoming the country’s number one, the other films companies could only go along whatever you said.
Of course being the number one would only have deterrent effect on Weibao Film and TV but it wouldn’t lethal and decisive enough.
Because in the past few years, Weibao Film and TV had not only establish a distribution channel bust also cooperated with many other distribution channels. This cooperation wouldn’t be easily broken as long they had good directors and actors in their hands.
The real killer move was the second move by Boss Wang. (He’s Wanda big boss and founder)
He directly spent billions of dollars in Hollywood to buy multiple companies.
Those people who supported Wanda would be able to go to Hollywood if they wished to. After all, he owned film companies and distribution channels in Hollywood.
Leaving a trace on the mainstream film industry of the US was something that every directors and actors in China were eager for!
With Wanda holding such a card, the other film companies in China wouldn’t be able to compare with them.
Those movie emperors and super directors all scrambled to make movie for Wanda Pictures.
If in this world, Qi Yiwen was able to find this solution, would Weibao Film and TV still able to retain the best directors, actors and other behind the scenes staffs?
As long their foundation had been poached away, could you still said that Weibao Film and TV would be able to stay stable as Mount Tai?