Analysis of the film and television derivatives market
Film and television derivatives are the products of the development of the film and television industry to a certain stage. As an important part of the cultural industry, the operation and consumption of film and television derivatives have played an important role in the soundness and perfection of the cultural industry structure.
Policies
In China, national policies provide legal support and a favorable development environment for the development of cultural and creative products such as film and television derivatives. In November 2016, the Standing Committee of the National People’s Congress issued the “Law of the People’s Republic of China on the Promotion of the Film Industry”. Article 7 of the general provision clearly stated that “Citizens, legal persons, and other organizations are encouraged to develop derivative products such as film image products according to the law”. Since then, various localities have successively introduced distinctive cultural policies. For example, in December 2017, the Shanghai Municipal Committee of the Communist Party of China issued “Several Opinions on Accelerating the Innovation and Development of the City’s Cultural and Creative Industries”, proposing to “Explore the market potential of derivative products, improve the licensing transaction model of film and television works, vigorously develop film and television brand licensing and image marketing, and encourage companies to participate in the follow-up operation of film and television works”. The essence of derivatives authorization is the transaction of intellectual property rights, and the policy’s increased protection of intellectual property rights will protect high-quality content in the derivatives market.
Economic environment
With the emergence and popularity of new types of film and television products such as online variety shows and online movies, the Chinese film market is showing unprecedented prosperity. The Chinese film box office market has maintained a rapid growth trend, from 17.07 billion yuan in 2012 to 64.27 billion yuan in 2019 yuan, with an average compound annual growth rate of 25.5%. Moreover, according to the official data of the National Bureau of Statistics of China, the operating income of nine industries in the cultural and related industries all achieved growth in 2019. Among them, creative design services and content creation and production related to derivatives increased by 11.3% and 6.1% respectively. The influx of capital has injected strong impetus into the film and television derivatives industry.
Social environment
With the rapid development of China’s economy and the continuous improvement of comprehensive national strength, the income level of Chinese residents is increasing. According to data released by the National Bureau of Statistics of China, in 2019, the national per capita disposable income of residents reached 30,733 yuan, an actual increase of 8.9% over the same period last year. The improvement of material life has gradually made cultural consumption a new focus of consumption. From the perspective of household consumption expenditure, the proportion of cultural consumption in the added value of culture and related industries has been increasing year by year, and the national per capita expenditure on film and drama tickets increased by 15.7% over the previous year. The improvement of residents’ cultural consumption provides a good economic environment for the development of derivatives of the film and television industry. As a type of cultural consumption, the consumption of film and television derivatives has a lot of room for growth in the future.
