BEIJING, April 20, 2020 /PRNewswire/ -- Zheng Zhihao, CEO of Maoyan Entertainment ("Maoyan" or "the Company") (Hong Kong: 1896), a leading platform providing innovative Internet-empowered entertainment services in China, said COVID-19's impact on the entertainment industry is only temporary, and that China's domestic entertainment industry will recover earlier than other industries that rely more heavily on the global market.
Entertainment is an indispensable need for consumers in China and demand will stabilize as the pandemic recedes, according to Zheng. The experience of watching movies in theaters and the excitement of going to live performances are not replaceable by other activities. Consumers' pent-up movie going demand will be released when the pandemic is over and theaters reopen, he said.
"The pandemic is delaying entertainment consumption, but the demand will not vanish," said Zheng. "The pandemic's impact on the entertainment industry is only temporary. The growing momentum for the industry will continue in coming years. China has a complete entertainment ecosystem, so the industry will rebound earlier than other industries that heavily rely on the global market."
According to a Maoyan survey in March, more than 70% of movie lovers in China were eager to return to cinemas after they reopen, up from 54% in February.
Unlike many manufacturing industries that are highly globalized, China's entertainment industry has a complete ecosystem, covering both the supply and demand sides. The industry has the capability to meet the enormous and growing entertainment demands in the country. As a result, if the pandemic in China ends earlier than in other countries, the domestic entertainment industry will also start to recover earlier than many other industries.
Turning the crisis into new opportunities
The whole entertainment industry has been severely hit by the COVID-19 pandemic, but the impact varies for different entertainment sectors. The collaboration among different sectors will help the industry survive this difficult time and turn the crisis into new opportunities in the long run, said Zheng.
"Some movies canceled their theatrical releases and were shown instead through online streaming platforms, which helped ease the short-term impact while also creating long-term opportunities," said Zheng. "However, theater screening and online streaming are two different models. Theater screening has its own advantages in audio-visual effects, viewing atmosphere and social experience. For movie production companies, the theatrical release is still the preferred channel to generate return on their investment. Therefore, there is no need to worry that theater screening will be replaced after the pandemic."
The online releases of movies will also create more IP-related opportunities for the industry in the long-term, Zheng added. The cooperation and interaction between online and offline channels will generate synergy to attract the target audience and support the development of IP content and products.
More responsibility for internet companies
"While offline companies in the industry are facing more pressure because of the pandemic, internet companies like Maoyan should take more responsibility to enable the industry to fight against the pandemic and prepare for the market's recovery," said Zheng.
When a number of movies canceled their releases in late January, just before the Spring Festival, Maoyan immediately announced that all users could claim full refunds. In just three days, all refunds for the Spring Festival holiday movies were completed, with more than 5 million tickets returned.
For industry partners, Maoyan organized a series of online training sessions and business seminars, and also released market survey reports, to help partners learn current industry trends and seize new opportunities as the market begins to recover. Maoyan survey in March found that implementing strict precautionary measures, ticket discounts and the quality of new movies were key factors that will attract the audience back to cinemas.
About Maoyan Entertainment
Maoyan Entertainment (Hong Kong: 1896) is a leading platform providing innovative Internet-empowered entertainment services in China. Since its inception, Maoyan has grown from an online movie ticketing service provider to an innovative one-stop platform for entertainment services. Maoyan has a comprehensive strategy to become a leading platform servicing the entire entertainment industry in China. The upgraded strategy is supported by five key platform pillars: online ticketing platform, products and services platform, data platform, marketing platform, and funding platform.
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SOURCE Maoyan Entertainment