One hundred million box office were stolen in one year, 326 theaters were heavily penalized

August 19, 2022

The foreign blockbuster "King Kong Island" is going to be released, and small cinemas around the world are expecting to steal the ticket. However, it never occurred to them that yesterday’s film authority suddenly notified and penalized 326 theaters that had reported to the police at the box office. Let these theaters fall short of wishful thinking. In the notified list, there were 126 theaters that had stolen more than 500,000 ticket boxes, and 110 movie theaters had stolen over 100,000 ticket boxes and more than 500,000. In accordance with the calculation of the minimum stolen box office, the equivalent of the list disclosed a one-time disclosure of 105 million at the box office.

"Chinese movies have already passed 50 billion yuan! There are at least 20% of box office statistics, and movie theaters are the black holes of Chinese movies." Say.

According to the calculation of 10% of the total box office in the year, there are also 4.75 billion stolen box office boxes waiting for investigation. In the just-announced list, the entertainment capital theory found two important features: First, the penalties were very intense; second, the county-level theaters became the hardest-hit areas that evaded the box office.

In fact, county-level cinema revenue is not high, plus various property and labor costs, can be said to struggle every year on the subsistence line. After the release of the list, the company may slow down the pace of creating new studios in the county-level cities, and the existing county-level studios may face severe punishment.

The background of this surprise inspection by the film authorities was the implementation of the Film Industry Promotion Act on March 1 this year. Industry insiders told the entertainment capital that this list is particularly strong in terms of killing chickens and monkeys. This type of assault supervision will become a normal act or a special action to promote the promulgation of the law. It remains to be seen in the next step.

The penalties are so great that the rent for one year is gone.

In the "2017 China Entertainment Industry Conference", Yu Dong once again mentioned the phenomenon of stealing box office. “In 2016, the market is still not standardized, and the phenomenon of stealing the box office is still severe. It can be said that it is worse than it has been over the years.

Today, the department in charge of cinema has issued 326 illegal cinemas, mainly based on the "Promotion of the Film Industry Act."

Article 51 of the law stipulates that movie distribution companies, movie theaters, etc. that have made false transactions or misreported sales revenues and disrupt the order of the film market shall be ordered by the film authorities of the people's governments at or above the county level to make corrections and confiscate the illegal gains. A fine of between 50,000 yuan and 500,000 yuan shall be imposed; if the illegal income exceeds 500,000 yuan, a fine of not less than one and not more than five times the illegal gain shall be imposed. If the circumstances are serious, they shall be ordered to suspend business for rectification; if the circumstances are particularly serious, the original issuing authority shall revoke the permit.

“This inspection was very abrupt, and there was no disclosure of the wind, and I heard that it was a system of movie special funds that was combined with data from various home appliance manufacturers.” A list of famous theater managers disclosed to entertainment capital.

Not only is it sudden, but also the punishment is still relatively large. The punished movie theaters at the box office were about 4 million, and the one-time fine was 200,000. The cinema manager said: "The rent for one year is gone."

I missed the fat of "King Kong Island" "Super 8"

As previously thought, the list of 63 theaters that were announced at the time of stealing more than 1 million in the box office in 2016 was mostly remote areas or county-level city theaters in big cities.

The entertainment capital theory randomly queried five or six theaters that had stolen more than 1 million box office boxes. After discovering that these county- and city-level cinemas had a multi-year box office of several million and a high number of more than 8 million, most of them were about 4 million at the box office, and the ticket houses were Very low.

The annual data of the China Animation Tongxiang Jiabo Movie Theatre and the Film Specialist Office ranked first on the list. The county-level city theater had only 4.27 million in the box office in 2016, which means at least one fifth of the annual box office. It was eaten by the studio itself.

Zhongying Tongxiang Jiabo Cinema is located in Tongxiang County, Jiaxing County. It is a typical county theater with an area of ​​approximately 6,300 square meters. It has a total of 5 movie theaters, 1 VIP hall and a giant screen hall, which can accommodate over 1,200 spectators. The cinema investment for this five-star cinema is between 13 million and 28 million.

This is a treasonable account. If the box office accounts for more than 4 million all year-round, the annual adult profit is about 15% to 20%. It takes at least 15 years or more to recover the cost. If you steal the box office, this time Can be shortened by half.

Among the cinemas notified this time, 63 of them were required to suspend business for at least 3 months from March 27, and another 63 were required to suspend business for rectification for not less than 2 months. At this point in time, the cinematography managers with “recruitment” were very sorry, because it means that these theaters will miss the annual box office blockbuster “Speed ​​and Passion 8” released on April 14, and the loss is inevitable.

The pace of new cinemas in third-tier cities will slow down

In recent years, along with the rapid development of the Chinese film market, the box office trend in the third and fourth tier cities has become clear.

According to Yi En data, in 2016, the growth rate of box office in fourth-line and below cities in the Spring Festival reached 104.97%, an increase of 5.68 percentage points from the same period in 2015, and that of third-tier cities increased by 65.8% compared with last year. The box office in third and fourth-tier cities accounted for more than half of the country’s total box office.

The increase in box office mainly comes from the increase in the number of theaters. According to the China Film News, the total number of screens in China was approximately 41,000 in 2016, an average of 26 screens per day. Among them, 1,612 new theaters were added last year, and 9552 new screens were added. Three and four-tier cities added 3,664 screens, accounting for 38% of the country’s total new additions. At present, the total number of screens in China has reached 41,179 and the number of theaters exceeds 7,600.

Judging from the big trends, the construction of first-tier urban cinemas is almost saturated, and that of second-tier cities is slowing down. In the future, the main layout will be in third and fourth-tier cities. Leading companies like Wanda Cinema will also sink in third-tier cities and continue to acquire and expand.

The rapid expansion of cinemas also increased the valuation of theater assets. Prior to Great Wall Television's acquisition of Nader Films, it had valued 500 million for its five theaters, Xiaoshan Dana, Sheyang Dana, Jiashan Dana, Huzhou Dana, and Jiande Jinma owned by Zhejiang and Jiangsu. However, the valuation of theater assets may shrink in the future.

When Bona Films acquired cinemas in 2016, it encountered two sets of accounts in the theater. “The acquired data shows that the annual box office revenue is 20 million, but the other party will immediately report another set of revenue data. Stealing the box office must be two sets of accounts. As long as the regulatory authorities go to collect the evidence, they will not be able to find out if they grasp the criteria. What?” Yu Dong once said in pain.

In addition, there are industry sources, the future of investment companies in the county's new cinema will also slow down. “A large part of county-level studios earn money by stealing box office. Once they are investigated and punished, some penalties may be directly closed.”

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