What does film and television fund mean Is it only possible to do film and television

Film and television investment**: Since 1995, the situation of foreign funds invested in Hollywood has begun to rise, and the concept of portfolio investment has been introduced into the film field, if the funds can be diversified into 20 to 25 films, it can not only avoid risks but also ensure a certain percentage of returns. This trend ran through the second half of the nineties.

In the total investment of the hit movie "Avatar", two film companies have undertaken 60% of the investment, and with the high box office of this movie, the two ** also have very high returns. Li Erwei, the founding partner of Huayingxing Film and Television Investment, explained: "Film and television investment** generally refers to the public and private placement of equity and copyright purchase of film and television projects.

Including special projects** and non-special projects that include the film and television cultural industry**. ”

Film and television investment** generally refers to the public and private placement** of investment in the equity and copyright purchase of film and television projects, including special projects** and non-special projects that include the film and television cultural industry. A brief introduction to the operation mode of film and television:

1) Equity investment in the company.

Company equity refers to the private placement of film and television due to the acquisition of equity in non-listed film and television companies, the operation of film and television projects through non-listed film and television companies, and finally exit through IPOs, mergers and acquisitions, equity transfers, etc., so as to obtain investment returns. This investment model requires a large amount of investment, a long investment and return cycle, and has high requirements for investors to experience in the film and television industry.

2) Project investment.

Film and television private placement**Direct investment in film and television projects refers to the direct investment of funds in film and television projects as an investor in film and television projects, and after the release of film and television projects, the income of film and television projects (including distribution income and other subsequent copyright income) will be distributed in accordance with the provisions of the film and television investment contract.

This investment model is clear, the investment return is fast, and the exit method is relatively flexible. Due to the high-risk nature of the film and television industry, film and television companies often adopt a "packaged" approach in specific operations, and jointly invest in several films under a certain film and television company to share risks. This investment method has become the most mainstream investment method in domestic film and television after the company's equity investment.

The project investment exit method is more flexible than the company's equity investment, and the exit can be achieved through the box office share or other follow-up copyright income, and the project investment cycle is short, and the capital turnover speed is relatively fast, which is a preferred investment method for investors at present.

3) Investment and loan linkage.

This investment model refers to the asset-light nature of film and television projects, relying on their own strength is more difficult to obtain bank loans, in this case, the first can provide a certain guarantee for the project, under the premise of this guarantee, film and television projects can obtain bank loans, for banks, greatly reducing the risk of loan recovery for their separate operations. At present, this investment method has not yet formed a mainstream investment model in China.

Do you mean film and television investment or **?

Just ask the professionals, the experienced kind.

The three most common operating models for film investment**:

1. Investment.

It is mainly a form of ownership of an investment company that makes a profit through a listing or merger. The demand for funds in this mode of operation is very large, the general investor does not have enough assets, the investment experience of the investor is very high, and the company's investment cycle is long, which is different from film investment, and of course the return on investment is also very high.

2. Project investment.

Direct investment in the film company's projects, co-investment in some of the film company's films. Investing in a movie, if the profit is not good, there will be a deficit, and the co-investment will allocate some risks, and the benefits will be quite large. The exit method is also quite flexible, and the box office revenue can be withdrawn after separation, and the advantage of project investment is that the investment cycle is short, and the exit time is faster than the speed of investment.

3. Loan linkage.

If the film project cannot obtain or is difficult to obtain a bank loan, the VC institution shall obtain a bank loan through guarantee while providing the financial needs of the film project, which greatly reduces the risk of the bank and the project.

This is Shanghai's first film and television **, and it is also expected to become the largest film and television in China**. The establishment of film and television **, while proving that China's film and television industry has become a "rich mine" in the investment field, what can it bring to this mineral deposit? There is too much hot money, and investing money becomes gambling Is there a shortage of money in China's film and television industry?

Su Xiao, general manager of Shangshi Pictures, said bluntly: "Chinese film and television are not bad for money. The film and television industry is small, with a total of more than 20 billion movies and TV series a year.

There is no shortage of money in this industry, coupled with the influx of a large amount of hot money in the past two years, the mentality of creators in the entire industry is impetuous, and the quality of works has declined, and many people think that it is caused by too much money. The quality of projects in the film and television industry is difficult to predict by only one or two decision-makers. As a result, the money invested in the film and television industry is like a gamble, winning is a minority, and more is burning money.

In Su Xiao's view, China's film and television industry, which is gradually moving towards industrialization, needs more professional and standardized investment and financing channels and risk control means to escort it. **Entering helps the industry to operate the norm "** is never equal to money. It has a proven track record of success in the operating model of Hollywood films.

Su Xiao believes: "The entry of ** will greatly change the game concept of this industry. Film and television often adopt the method of packaged investment, and rarely only invest in a single project, which plays a practical and effective role in avoiding the risk of film and television investment.

According to the plan, the 3 billion** initiated by Shangshi Pictures and Hony Capital will be mainly domestic investment and project investment, and the investment direction mainly includes TV dramas, movies and a small number of equity investments in the film and television industry. At the same time, Su Xiao also pointed out that "the most important role is to provide a professional governance structure. In order to obtain the best support, film and television companies must be strict with themselves, from each specific shooting plan to each expenditure, with a more professional financial and production process, through the strict inspection of the financial system.

A set of scientific decision-making mechanisms supporting the company also contributes to the company's professional decision-making level. This is not the first film and television team in China. In 2007, the first film and television ** appeared in China, and many ** have appeared since then.

However, in the eyes of industry insiders, most of these ** "thunder and rain", there are not many projects that can really invest in good projects, and the benefits to investors are not obvious. Su Xiao believes that there are currently more than 5,000 film and television companies in China, and most of them are small workshops.

The overall trend of the film and television industry in the next few years is to accelerate integration, and professional ** will provide stable financial support for enterprises, and use funds to drive the number of investments, which will help the expansion and development of the entire film and television industry.

As early as 2007, the first private equity film ** Tiechi came out in a high-profile manner, and Ji Erwei, the founder of Tiechi at the time, planned to invest in 20-30 films with Chinese elements in five years to enter the Western market. The idea of the film won the full house of filmmakers, on the grounds that "a lot of the hot money for investing in Chinese films comes from real estate, which may be withdrawn at any time, and participating in it can provide continuous and stable financial security." The box office champion of the year, "The Gathering Brigade", earned Huayi a 17% return, and China Merchants Bank became famous, and the latter's 50 million unsecured credit loan for "The Assembly" became a classic case of bank-enterprise cooperation.

This year is also the year when Sequoia Capital invested in Poly Bona, China's largest private film distribution company received about 30 million yuan in the first funding, not only Shen Nanpeng, according to a report at the Shanghai Film Festival in mid-June of that year, IDG Asia President Xiong Xiaoge (Weibo) met with a group of entertainment company owners, everyone hoping to get investment from him.

If you want to allocate the capital to invest in films, before 2005, it was mostly a small amount of money to play tickets, and after 2007, it was bustling all over the world for profit. "Before 2005, the capital was black, yellow, cyan, blue, ......Wait, invest in a movie in order to play tickets, launder money, and praise female stars, everything", a film company executive compared the blind and trembling of capital: "The industry is slowly maturing, those who have lost their capital have been washed out, and there are also those who have been left behind by the pain, and the color has gradually become simple - profit-seeking, although all kinds of capital still exist now, but it is no longer the mainstream."

Even if you want to praise female stars, there is a plan and step by step, in order to make more money. "Pure color capital is more and more, according to the "2011 China Film and Television Industry ** Report" estimates, 2006-2011 (the end of May) period, the domestic investment in the film and television industry of the cultural industry has been close to 30, despite the overheating, but in the next five years, there will be no less than 15 billion funds poured into the field of film and television industry.

Whether it is directly investing in film and television projects through film and television investment**, or investing in the equity of film and television companies, investors invest in order to be able to obtain a considerable return on investment. Although through product placement, pre-sale and many other parties, Kaixing-style film and television works can recover part of the investment in advance, but the real investment income still depends on the market response after the screening of film and television works. From production to screening is a long stage of pre-investment, for investors, there is a lot of cost to pay in the early stage, but it is difficult to predict whether the film and television works will sell well, so the risk of investment in the film and television industry is high.

There are many reasons for the risks in the investment of China's film and television industry, on the one hand, the characteristics of the film and television industry itself, from production, distribution to screening, etc., there are many risk factors, on the other hand, the uncertainty of the legal system and regulatory law enforcement behavior undoubtedly increases the risk of investment. In addition, in the past, Chinese film and television investors and participants had weak legal awareness and were careless when signing agreements and making copyright arrangements, resulting in many unnecessary disputes and losses. To a certain extent, many of the risks in film and television investment are still "man-made disasters", and through reasonable arrangements, professionals and the assistance of institutions, many risks can be discovered, curbed and resolved in the embryonic stage.

First, the risk control means of film and television, there are four risks in film and television investment: the risk of pre-selection of the project, the risk of cost control, the risk of completion and the risk of distribution. Investors need to understand how the products they want to invest in can deal with these four major risks.

Second, the dispersion of investment in film and television works, at present, the vast majority of film and television ** return blocks have a relatively large fundraising scale, generally more than 1 billion judgments, in fact, they are also diversifying investment, and they will lay out many film and television dramas. "It is best for investors to choose products that invest in film and television dramas that are more dispersed, and may be less affected by the poor box office of a single film and television drama. Industry insiders said.

Lv Dan also said that the products managed by the company also stipulate the proportion of investment in each film and television work, and stipulate that more than 90% of the investment is in TV dramas.