Millennium director
Chapter 700 Financing
Deformation is deformity.
Wu Yuan is just one person, and at most he can add a large film and television company. He can't fight against the whole era.
Not only can he not fight, he has to try to integrate into this fanatical vicious circle.
There is no way. If you don't integrate, you will be eliminated.
It doesn't matter for Guangying Times. Guangying Times' main job is to produce and make movies. TV series are just one of the industries. Even if the pace has slowed down in recent years and newcomers are the main force, it doesn't matter.
And this is not a bad thing. Let the newcomers practice more in the company's new TV series. Maybe they can cultivate a few fresh blood who can act in movies, which is good for the company's film development.
But another company under Wu Yuan, Guangying Kuaibo, which is just above Guangying Times, can't turn a blind eye to the current hot and deformed TV series market.
If Guangying Kuaibo does nothing, it will really be eliminated at the speed of light.
Just like Sohu, LeTV and other platforms that are still in the first echelon of domestic video websites, but there will be no such websites in two years.
As the three major platforms are moving much faster than the original time and space, and are all making a big push for self-made dramas, Guangying Kuaibo must also keep up to ensure that at least it does not fall behind.
Otherwise, in the next two or three years, when the three major video platforms will have a large number of excellent self-made dramas to attract video users to open memberships, if Guangying Kuaibo has no new dramas to attract people, users will be lost in large numbers.
This may also be the bad side of Wu Yuan's butterfly effect.
After all, in the original time and space, it will take at least until around 2016 for online dramas to completely explode.
But in this time and space, Guangying Kuaibo has already come up with the "Soul Ferry" series of online dramas, which undoubtedly guides everyone in the fog in advance.
So Guangying Kuaibo will have to burn money next.
After Li Xiaoping understood these things clearly, Wu Yuan immediately came to Guangying Kuaibo upstairs.
Although they are both called "Guangying", Guangying Kuaibo and Guangying Times are two completely independent companies.
So Li Xiaoping cannot participate in any daily operations of Guangying Kuaibo.
The cooperation between Guangying Kuaibo and Guangying Times is also normal. Sometimes, TV series produced by Guangying Times may not be sold to Guangying Kuaibo, but may be sold to Penguin.
This is a very normal operation method for large companies and groups with multiple subsidiaries. After all, TV series produced by Guangying Times may not necessarily make Guangying Kuaibo feel good. If they want to buy, they may not necessarily accept the price.
Although everyone is a boss, they still have their own development concepts and their own performance to complete. It is normal that the cooperation cannot be negotiated.
Just like "Celebrating Yu Nian" is obviously the IP of Penguin's subsidiary, but because it failed to reach an agreement with Penguin Pictures, it was sold to Qiyi Video to make a TV series.
If Guangying Kuaibo wants to make a web drama, it also tends to produce it by itself.
When "Soul Ferry" was produced by Guangying Times, the honeymoon period of Guangying Kuaibo's broadcast had long passed.
After a while, Wu Yuan came to the office of the general manager of Guangying Kuaibo.
Facing the professional manager who is responsible for the company's daily operations and administrative work, Wu Yuan also directly talked about the company's next development strategy.
"The company is going to make a big production of self-made dramas next?"
"Yes." Chen Dewei brought Wu Yuan a cup of hot tea and affirmed: "Now the three major video platforms are all making self-made dramas. As the first video platform to make online dramas, we must keep up in this regard."
"Although the company's development strategy is to be based in Asia and take into account the markets of many Asian countries, the most important Chinese market is definitely the basic plate, and we can't relax."
"Now the company is preparing to make three self-made dramas, "Forensic Qin Ming", "He's Coming, Please Close Your Eyes" and "Day and Night Chase", which are expected to be released one after another next year."
Wu Yuan nodded: "What is the total estimated production cost?"
"Fifty million!" Chen Dewei sucked his teeth and said with some heartache.
Just three online dramas, adding up to 50 million production funds, this is definitely a big production!
These are all urban dramas, which are the cheapest type of TV dramas.
Wu Yuan also thinks it's a bit expensive. If it were three or five years ago, three low-cost online dramas like this would cost at most 20 million.
Even in the original time and space without him, the production costs of these three web dramas combined should not be so high.
It can only be said that Wu Yuan's appearance has indeed installed an accelerator for the mainland film and television industry
"In fact, the cost of making self-made dramas is small." Chen Dewei shook his head again and said: "Whether it is a TV series or variety show made by us, although the production cost is not low, we can basically make back the cost or even make a small profit by selling advertisements."
"The company's real money-eating beast is the server maintenance cost for daily operations. With the growth of website users, it will cost hundreds of millions of dollars every year just for the daily operation of servers and websites!"
"The cost in this regard is almost a net loss."
"After all, the advertising fees generated by platform videos, TV series, and variety shows must be used to offset the cost of production and copyright purchases."
"It is unlikely to fill the operating costs by selling advertisements alone."
Being a video platform is a bottomless pit of burning money!
Wu Yuan knows this better than Chen Dewei. He clearly knows that when the three major video platforms are at their peak of losses, a single platform can lose billions of RMB a year!
Even when the losses are the least, they still lose hundreds of millions a year.
As for profitability?
It doesn't exist.
At least it doesn't exist in the mainland.
It's so weird!
Online video platforms in other countries around the world are basically profitable, but it is very difficult for video platforms in the mainland to make profits.
The reasons are very complicated.
There are high production costs for self-made dramas and variety shows. A single platform can spend billions of yuan on self-made productions in a year, which is much higher than the production costs of Japan, South Korea and other countries.
On the other hand, the membership price of domestic video platforms is very low, from the earliest ten yuan a month to the later 25 yuan a month. Even if it has increased by 1.5 times, it is still very cheap.
The monthly membership price of online video platforms around the world is around 50 yuan, which is much cheaper in China. However, China has a large population, and each video platform has tens of millions of monthly active users. It costs a lot of money to invest in servers, and selling memberships alone cannot make up for the cost.
So even if you open a membership, those online dramas will have advertisements in the series, and they are divided into opening insertion, mid-film insertion, and end-film insertion. They are all hard-implanted into the series, but they can be fast-forwarded.
But even so, the server costs generated by the huge "free" video user group in China still make it difficult for major video platforms to make a profit.
Wu Yuan did not dare to challenge this big problem that Penguin and Alibaba could not solve.
He looked at Chen Dewei with a burning gaze and said in a firm tone: "Start financing!"
"Now there are a lot of capitals that want to enter the market, so let these suckers pay for the money." (End of this chapter)
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