Huayi Brothers Media Group Faces Competition in Film Production, TV Making and Artist Management Segments According to BAC Report14 Sep 2011 • by Natalie Aster
LONDON – Huayi Brothers has 3 main segments to operate: Film production, TV making and Artist management. And the competition forces shaping in those three appear to be contrary.
Although private film/TV making companies gained an opportunity to develop in the past decade, the film distribution market still shows oligopolistic structure. There are numbers of China's traditional state-owned film production companies with annual production of hundreds of specific materials having propaganda function. There are also hundreds of small private film companies that produce hundreds of small films. These two types of film production companies are now representing two even market forces. Moreover, in TV series the competition is very tough as the market is oversupplied. The situation reflects consolidation and market concentration trends. In the following decade, only large companies will be able to stay competitive and continue full operations.
In Artist management segment the situation is opposite. The barriers to enter industry are very low. As a result, many new small agencies appeared in the market offering their artist management services. These agencies are prime competitors to Huayi Brothers in the segment, and their number is rising due to favorable conditions. Therefore in Artist management sector no consolidation trend is witnessed; market concentration there is low, but competitive environment tends to become stiff.
In Film making and Artist management segment Huayi Brothers secure a strong position. Film production showed a 209.4% increase in 2010, making the major contribution to company’s revenues (which were up 77.4%). The Group has enough funds to further penetrate markets and stay competitive by keeping a smooth pace.
In TV drama series production, however, there are bright opportunities to expand. High quality TV drama series is the key to prosperous future. High quality of TV product raises TV channel ratings and broadens watching audience. Increased attendance of TV channel brings more profits per minute and in total. More profits allow hiring more qualified staff and also make advertisement pricing higher. These factors lead to increased TV series budget, and a bigger budget allows shooting higher quality dramas. Huayi Brothers should aim at the highest drama quality possible to gain audience.
Group’s recent financial performance slowed down due to seasonality. Comparing to December 31 2010, revenue and net income decreased by 69.3% and 57.9%, reaching CNY 163.3 M and CNY 27 M respectively. However, 2010 year results are very strong: revenue and net income amounted CNY 1071.7 M and CNY 149.2 M respectively. 2011 is promising to be another good year with stable growth.
Founded in 1994 and headquartered in Beijing, Huayi Brothers mainly engages in film production, artist management, TV drama making. In 2010 the Group entered Music and Cinemas markets. Several subsidiaries operate under the company’s brand name: Huayi Brothers Stars, Huayi Brothers Motion Pictures, Huayi Brothers Music, Huayi Brothers Global Media Group, Huayi Brothers Advertisement and Huayi Brothers Television. Since 2009 the company trades at Shenzhen stock exchange.
Other information on the company’s present activities, business prospects, financial position and experts’ forecasts can be found in the report “Huayi Brothers Media Group Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis” recently published by Market Publishers Ltd.
Title: Huayi Brothers Media Group Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis
Date: Sep, 2011
An in-depth throughout analysis of the China Media Industry and its competition forces can be found in the report “China Media Industry Comparative Analysis and Companies Ranking”
More company reports featuring SWOT and financial information, industry and competitors analysis can be found in Company Reports Catalog.
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