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China Entertainment Industry Indepth Research and Investment Opportunity Report

China Entertainment Industry Indepth Research  and Investment Opportunity Report

Last Update:2014-04-28

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Entertainment Industry is a basic form of fundamental cultural industry. It plays a vital role in cultural market. According to the Cultural Industry Promotion Plan issued by the State Council in 2009, which emphasized developing art performance as one of "Eight Major Tasks" in the development of cultural industry. Moreover, State "Twelfth Five-Year" Plan remains regarding entertainment industry as one of important priorities in cultural industry. Meanwhile, with the fast development of economy, the proportion of cultural entertainment expense has gradually mounted up; the time spent on cultural consumption has also increased little by little; selectivity of cultural products is growing. Besides, great changes have taken place in this field. People's spiritual and cultural need tends to meet a higher level. Nevertheless, the most entertaining and powerful programs have been one of the most popular cultural entertainment ways.

Entertainment Industry is an industry system, consisting of many supporting parts, such as creation, production and performance of entertainment products, as well as sales, consumption, agency-broker, art performing venue. Entertainment products contain many kinds of performing arts, like music, singing and dancing, drama, opera, ballet, ballad, vaudeville, etc. And there are several links in entertainment industry, which includes performing group, performing venue, intermediary organizations of performing and ticketing business of performing. Entertainment Industry is one of core industries in cultural industry system. Furthermore, it's not only a creative-and-labor oriented industry, but also a low carbon industry with low energy consumption but strong sustainability, so it has a great pushing effect on economy. It's estimated that there was 10.8 billion Yuan income in China's performing market in 2010, among which there was 5.718 billion Yuan income for professional art performing venues; there was 1.24 billion Yuan income for touring performances; there was 2.52 billion Yuan income for private groups in non-professional performing venues; and there was 1.32 billion Yuan income for big shows in large stages or venues.

So far, there are several distinctive characteristics in China entertainment industry. For instance, regional culture and location characteristics have decisive influences on the industry. China's entertainment market has a multi-perspective market structure with different ownership forms and various arts performing ways. Its major income sources are box-office income and corporate sponsor. Besides, the position of auxiliary income, like derivative profits, or copyright profits will be promoted gradually in the overall income of entertainment industry chain, but there are still some problems in this industry. Meanwhile, stricter and higher requirements are settle down for performers, staff, and stage setting and so on. The industry is still in its initial stage, so there is no doubt that the industry chain is immature; the entertainment market distribution is not perfect, the state-owned art groups reforming is not completed enough.

But generally speaking, entertainment industry has a bright development prospect, because it’s a vital part of cultural revitalization. At this stage, touring performing market and drama market are at the high-speed development stages. What's more, the emerging markets, such as ballad performing, child play performing and music performing markets, etc. have great potential to develop, among which touring performing industry is the one with the highest industrialization rate. And it had has many kinds of mature industrialization models, like sensational outdoor performance, theme park, touring stage performance, etc. Drama performing is the most active performing form in this market. It has a high frequency rate of creation, and its industrialization trend has been formed initially. Moreover, many influencing brand corporation have been entering into public, such as, Beijing Xixiao Tang Drama Studio, Shanghai Xiandairen Theater Studio, etc.

From the perspective of industry chain structure, there are kinds of corporations in China entertainment industry. As a whole, the cinema line enterprises of performing, the innovative enterprises of crossing borders of performances, the brand enterprises and the restructuring enterprises development well depending on their different advantages, and they are that kind of enterprises with the most investment value in the future. Cinema Line system is good for establishing brands and enhancing corporation value. Though centralized purchasing, and uniformly outputting products, the operation cost may be maximumly lowered down. The innovative enterprises of crossing borders of performances can easily realize superposition effect, with the advantages of making good use of many sources. Nowadays, what derivative products we can see in the market are the result of cross-border merger. It should be noted that the state is vigorously encouraging and promoting the development of restructuring enterprises. It's considered that restructuring entertainment groups have unique assets, which totally differ from others. For example, they have perfect cinemas or theaters, very experienced performers and performing groups, and good hardware performing equipments. Moreover, they are greatly supported by the government. Furthermore, grand developmental planning will be previously drew up at the aspect of development idea. So, it has double advantages: policies and resources over those private enterprises.

With the development of China entertainment industry, there are fiercer and fiercer investment and M&A competition among industries, besides, there are more and more types of models in the industry, such as IPO model, acquisition model, multi-parties investment model, international investment model, etc. Recently, some investment and financing cases' effects have been taken on the industry, including Yunfeng Fund's investment in Beijing Impression Arts Development Co., Ltd.; Hangzhou Songcheng Tourism Development Co., Ltd listing successfully and International investment in China Heaven Creation International Performing Arts Co., Ltd. They set good examples for entertainment market's merger and convergence.

With Forward's long-term tracking and collecting market data of entertainment industry, we roundly and accurately analyze the industry structure system for you from the view of mastering the whole industry. This report mainly focuses on the summary of development ways and prospect of entertainment industry. We develop the new space of the industry with the forward-looking thinking, for the purpose to provide corporations and research organizations which devote to flourish the entertainment market some useful experience and thinking.

Here, we would like to express our sincere gratitude to State Information Center, Bureau of Statistics of China, International Information Research Institute, Chinese Academy of International Trade and Economic Cooperation, Tsinghua University Library, Development Research Center of the State Council and Beijing Essence Forward Research Center, for their great support when we conduct this report!

Notice: All the market data, especially corporations’ ranking data in the report, only for business reference. Please do not take the data for enterprise publicity. Thank you! Or Forward shall not take any responsibility for any consequences!

Qianzhan Business Information Co., Ltd. Industry Research Center
Research Team of Entertainment Industry


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