director of the millennium
Chapter 700 Financing
Deformities are deformities.
Wu Yuan is just one person, and at most he is a member of a large film and television company. He has no way to fight against the entire era.
Not only can he not fight against it, he also has to try to integrate into this fanatical circle.
There is no way. If you don’t fit in, you will be eliminated.
It doesn't really matter for Guangying Times. Their main job is still production and movie making, and TV series are just one of their industries. Even if the pace has slowed down in recent years and newcomers have taken over as 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 some fresh blood who can act in movies, which is good for the development of the company's film industry.
But Wu Yuan's other company, Guangying Kuaibo, which is located just upstairs from Guangying Times, cannot turn a blind eye to the current hot and distorted TV drama market.
If Guangying Kuaibo does nothing, it will really be eliminated at the speed of light.
Just like Sohu, LeTV and others are still in the first tier of domestic video websites, but after two years, there will be no platform for these websites.
As the three major platforms are moving much faster than the original time and space and are all focusing on producing their own dramas, Guangying Kuaibo must also keep up to ensure that it at least does not fall behind.
Otherwise, in the next two or three years, the three major video platforms will have a large number of excellent self-produced dramas to attract video users to open memberships. If Guangying Kuaibo does not have any attractive new dramas, users will be lost in large numbers.
This may be the bad side of Wu Yuan's butterfly effect.
After all, in the original time and space, it would take until at least 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 web dramas, which undoubtedly guides everyone in advance in the fog.
So Guangying and Kuaibo will have to spend money together.
After Li Xiaoping understood these things clearly, Wu Yuan immediately came to the light and shadow fast player upstairs.
Although both are called "Guangying", Guangying Kuaibo and Guangying Times are two completely independently operated companies.
Therefore, Li Xiaoping cannot participate in any of the daily operations of Guangying Kuaibo.
The cooperation between Guangying Kuaibo and Guangying Times is also normal. Sometimes, the TV series produced by Guangying Times may not necessarily be sold to Guangying Kuaibo, but may also be sold to Penguin.
This is a very normal way of operating for large companies and groups with multiple subsidiaries. After all, the TV series produced by Guangying Times may not necessarily be good to Guangying Kuaibo, and even if they want to buy them, they may not be able to accept the price.
Although we all have the same boss, we all have our own development ideas and performance targets to achieve. It is normal that we cannot reach an agreement on cooperation.
Just like "Celebrating More Than Years" is clearly the IP of Penguin's subsidiary, but because of the failure to reach an agreement with Penguin Pictures, it was sold to Qiyi Video to be made into a TV series.
If Guangying Kuaibo wants to make a web drama, it also tends to produce it itself.
"Soul Ferry" was produced by Light and Shadow Era back then, and the honeymoon period of its broadcast on Light and Shadow KuaiBo has long passed.
After a while, Wu Yuan arrived at 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 directly talked about the company's next development strategy.
"Is the company going to produce its own drama next?"
"Yeah." After serving Wu Yuan a cup of hot tea, Chen Dewei affirmed, "Now the three major video platforms are all producing their own dramas. As the first video platform to produce 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 base and we cannot relax."
"The company is now preparing to produce three self-made dramas, "Forensic Qin Ming", "He's Coming, Please Close Your Eyes", and "Day and Night Chase". They are expected to be released one after another next year." Wu Yuan nodded: "What is the total estimated production cost?"
"Fifty million!" Chen Dewei said with some heartache, sucking his teeth.
They are just three web dramas, but the total production cost is 3 million, which is definitely a big production!
These are all urban dramas, which are considered the cheapest type of TV dramas.
Wu Yuan also felt that it was a bit expensive. If it were three or five years ago, three low-budget web dramas like this would only cost 2000 million yuan at most.
Even in the original time and space where he did not appear, the combined production costs of these three web dramas 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 money spent on making our own dramas is small." Chen Dewei shook his head again and said, "Whether it is a TV series or a variety show we make ourselves, although the production costs are not low, we can basically make back the money or even make a small profit by selling advertisements."
"The company's real money-eater is the server maintenance costs for daily operations. With the growth of website users, it will cost hundreds of millions of dollars every year just on server and website daily operations!"
“The cost in this regard is almost a net loss.”
"After all, the advertising fees generated by the platform's videos, TV series, and variety shows must be used to offset the costs of production and copyright purchases."
"It is unlikely that we can cover the operating costs just by selling advertisements."
Running a video platform is a bottomless pit of burning money!
Wu Yuan knows this better than Chen Dewei. He knows clearly that when the three major video platforms are at their peak of losses, a single platform can lose tens of billions of RMB a year!
Even when the loss is the lowest, we still lose hundreds of millions a year.
As for profits?
nonexistent.
At least it doesn't exist in the mainland.
It's just so weird!
Online video platforms in other countries around the world are basically able to make profits, but it is very difficult for video platforms in mainland China to make profits.
The reasons are complicated.
There are high production costs for self-produced dramas and variety shows. A single platform can spend tens of billions on self-production in a year, which is much higher than the production costs of Japan, South Korea and other countries.
On the other hand, the membership prices of domestic video platforms are very low, from the earliest ten yuan a month to the later 25 yuan a month. Even though 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. A lot of money has to be invested in servers, and it is impossible to make a profit just by selling memberships.
So even if you have a membership, those web dramas will still have in-series ads, which are divided into opening inserts, mid-film inserts, and end-film inserts. They are all hard-implanted into the series, but you can fast forward.
But even so, the server costs generated by the huge domestic "free" video user group still make it difficult for major video platforms to recoup their costs and make a profit.
Wu Yuan did not dare to challenge this difficult problem that neither Penguin nor Alibaba could solve.
He looked at Chen Dewei with burning eyes and said firmly: "Start financing!"
"There is a lot of capital that wants to enter the market now, so let these unlucky people pay for it." (End of this chapter)
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