Chinese movie-ticketing leader Maoyan says to boost film investment, Tencent partnership

Maoyan Entertainment

10/07/2019 05:29

By Pei Li and Ryan Woo
    BEIJING, July 10 (Reuters) - Maoyan Entertainment  1896.HK ,
China's leading movie-ticketing platform, said it would boost
investment in the domestic film industry and deepen its
partnership with Tencent Holdings Ltd  0700.HK , as it works to
halt a downturn at cinemas.
    The comments come as box office revenue this year lags that
of last year. To reverse the trend, cinemas are pinning hopes on
domestic movies, Chief Executive Zheng Zhihao told Reuters.
    "Whether the full-year revenue will be in line with that of
last year or even exceed, it remains to be seen," Zheng said in
a recent interview.
    Box office revenue slumped 2.7% in the first half of 2019,
showed data from Maoyan, while the number of movie-goers fell
10%. Analysts noted the downturn coincided with a slowdown in
domestic consumption at a time when a trade dispute with the
United States threatens to impact an already softer economy.
    Unlike in countries such as the United States, most Chinese
movie-goers secure seats by buying tickets online from dealers
such as Maoyan and Taopiaopiao, backed by Alibaba Group Holding
Ltd  BABA.N .
    However, the ticketing market is approaching saturation and
so Maoyan aims to expand further in content investment and
distribution, Zheng said.
    "Over the years we have built up our strength in ticketing,
distribution and media, and now we have newly created capital
for manoeuvrability," Zheng said.
    He also said Maoyan has begun a strategic alliance with
gaming and social media firm Tencent, giving it access to
resources from group firms such as Tencent Pictures, Tencent
Video, Tencent Investment and Tencent Music Entertainment Group
 TME.N .
    As well as Tencent, Maoyan is also backed by online delivery
company Meituan Dianping  3690.HK .
    
    DISCIPLINED MARKET
    Some blockbuster movies have been delayed due to amendments
needed to gain approval for wider screening, with sensitivities
particularly high ahead of the 70th anniversary of the founding
of the People's Republic of China. One such title, "The Eight
Hundred", is a patriotic World War Two epic focusing not on the
Communist Party but on its civil war adversary, the Kuomingtang.
    The government is also working to eliminate aspects of the
entertainment business deemed at odds with Communist Party
values. Action taken includes a cap on artists' salaries and, in
an extreme case, a tax evasion fine of $1.62 billion on A-list
actress Fan Bingbing.
    "I don't think we can talk about any industry without the
context of the country," Zheng said. "I believe in a more
disciplined market environment, the industry will enjoy
long-term development."

 (Reporting by Pei Li and Ryan Woo; Editing by Christopher
Cushing)
 ((Pei.Li@thomsonreuters.com; +86 18810385187;))