Entertainment And Venture Capital Under The Outbreak: Different Segments Of The Market Are Hot And Cold, And New Formats Are Emerging.

In the past two years, influenced by many factors, the cultural and entertainment fields are in the cold state as a whole. At this stage, with the outbreak of the new crown pneumonia, different sub sectors of entertainment are facing the situation of ice and fire.

In the first quarter, the formats of films, performances, competitions and so on were almost empty. The data index of games, short videos, live companies' daily activities and pay rates increased significantly. Under such circumstances, what are the reflection and coping strategies of entertainment startup companies? How should entertainment investment fund control investment rhythm and adjust investment strategy?

Reflection on business model of epidemic impact

Chen Yuetian, Chen Hai capital partners, told the twenty-first Century economic report that in the current epidemic cycle, different entertainment sectors have been affected to varying degrees. First of all, for games, short videos, and live broadcasting industry, the user activity of products is increased instead of the benefit of the "home". The user's viscosity is enhanced, and the payment habit is gradually being formed.

Second, the animation, literature, music industry, basically not affected by the epidemic. Because workers in these formats basically work in the form of individuals or workshops, they do not form personnel aggregation, and website operations can also be completed online.

Third, it may not be so lucky for long video products like TV dramas and variety shows. The start of new TV series and new programs needs a large number of actors, such as the theatre group, the audience and the guests. This is difficult to achieve in the current epidemic prevention and control stage, which will also affect the quarterly advertising revenue of the long video sites. Those stocks that have been made and can be online will attract more attention and get more marketing resources.

Fourth, it is most seriously affected by the epidemic under the offline format of films and performances. But this is actually a universal challenge to the offline industry. Catering, consumption, tourism and other industries which rely mainly on offline channels are also affected.

"Through this epidemic, we will constantly reflect on: the current global black swan events continue to occur, what kind of business model can withstand the challenges brought by changes in the external environment, not to usher in a devastating blow." Chen Yuetian said.

Entrepreneurs need to think about whether they should evolve their business models and develop online and offline channels in order to avoid some risks under the condition that the infrastructures of both domestic and offline infrastructures are relatively sound. For example, the movie industry can also take advantage of online exports and do not rely too much on offline channels.

New formats need to cultivate user habits.

"On the surface, some industries that do not rely on offline trading scenarios are less affected by the epidemic, but in fact, as long as any industry is involved in production and marketing, it is difficult to avoid the negative impact of the epidemic as long as any part of the industry is staffed." Three thousand capital founder partner Huang Huang told the twenty-first Century economic report.

For example, the derivatives business, although the Spring Festival online shopping fever continued, most of the logistics channel distribution quickly recovered, but the design and production of derivatives can not be carried out normally. Most of the relevant companies are currently selling inventory products, and new products can only be postponed.

In addition, the game area that everyone is optimistic about, although many enterprises achieve remarkable achievements during the Spring Festival, they mainly aim at the online game products. The development of the game is also labor intensive, relying on R & D personnel to work centrally. The scattered home office mode is inefficient and difficult to sustain. Under such circumstances, many companies are also actively trying to reduce losses, such as the use of a small number of core personnel in accordance with the project team division, the return to Beijing after the isolation period of centralized closed office mode.

During the epidemic, there are also new formats and new attempts in the entertainment industry. Twenty-first Century Economic Observer reporter observed that today's headlines and watermelon videos have launched the "home strawberry" online music festival with the music company's modern sky.

Huang Huang believes that for small theaters, music festivals and other offline formats, online live broadcasting is both an attempt and a breakthrough, and it is also a choice. It is necessary to optimize the product experience and cultivate user habits for a relatively long period. If it is a short-term epidemic, it may not have a big impact on the proportion of the new industry in the market structure. After the end of the epidemic, the original traditional business income will return to normal.

VC is committed to entertainment investment and technology driven projects.

Under the influence of the epidemic, although the VC industry has resumed work, it still has a lot of management work to do research, redevelopment and post investment, and the investment business can only temporarily stop. The same is true for the entertainment investment fund.

"We can understand the basic situation of a company by telephone, but if we want to judge the value of a company's investment, we need to do field research, and contract negotiations must also be face-to-face. It's hard for you to say that the founders of a company have not been to the company, and the money has been fought. Chen Yuetian said.

Nanshan capital founding partner ho Jia also told the twenty-first Century economic report that this year, we will make great efforts to do well in the post investment, improve and standardize the post service system, and effectively serve the enterprises from all aspects of business, finance, taxation, manpower and public relations, so as to ensure the better development and exit of the existing portfolio.

In terms of investment strategy, he said that the investment strategy of Nanshan capital will not change greatly. It will still focus on the entertainment industry and maintain its sensitivity to the industry, including some subdivision tracks that have been invested before, and if there are good quality projects with good differences, they will continue to invest. In addition, the team is very concerned about new opportunities brought by new technologies such as VR / AR / cloud games, including some new industrial opportunities after the outbreak.

"The primary market is different from the two tier market, and it can not invest in events. More emphasis is placed on long-term investment opportunities from 5 to 10 years." Chen Yuetian said. For Chen Hai capital, it still insists on its own investment strategy. At this stage, it mainly focuses on two directions: first, technology driven development opportunities; two, products and contents related to the 95 and 05 groups are also worth investing, and their right to speak is growing.

Huang Huang also said that the overall investment strategy of the company has not changed due to the outbreak, but the overall progress of the work will be postponed. For example, the project launched before the fund was involved in the merger and acquisition involving the companies, lawyers, investors and other parties.

"Another of our investment companies is very lucky. At the twenty-eight month of the twelfth lunar month, a new round of financing is coming." Huang Huang was thankful for this. "We didn't know that the epidemic would be so serious at that time. It was just a routine operation - bag for safety."

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