Research On The Profit Model Of Wanda Films

With the rapid development of China's economy and the improvement of per capita disposable income of residents,as an important part of the cultural industry,the total box office income of films continues to rise,and the total number of screens in China's screening industry also shows a geometric growth.However,in recent years,the attendance rate of cinemas is difficult to improve,and the newly added cinemas generally have low revenue and difficult to recover costs.These data quietly indicate changes.Profitability is the foundation and core of the survival and development of an enterprise.Only long-term and stable profitability can cope with the rapidly changing film market.In the face of these difficult to ignore the potential threats,can not help but cause us to the projection industry enterprise profit model attention.This paper takes Wanda film as the main research object and makes an in-depth analysis of its profit model.With its unique direct-sale profit model,Wanda film can maintain its high ticket price while maintaining a high market share.The components of its profit model are respectively box office earnings as the core,individual consumers and corporate customers as the object of profit,box office and advertising revenue as the main source of profit,film screening to maximize the value of the main profit measures,and finally the vertical integration of the value chain as the profit barrier.Although the direct profit model has certain scale advantages and brand advantages,as well as the characteristics of low cost and differentiated operation.But at the same time Wanda film also exist marginal revenue decline in profit source,profit point have alternatives to threats and expand rapidly may cause a potential pitfalls,such as management dilemma for Wanda film in the hidden trouble in specific profit model,this paper respectively from the Angle of strategy and financial analysis of the causes of the problem,put forward the corresponding optimization Suggestions and measures,and finally has carried on the summary and outlook.It is hoped that the study on the profit model of Wanda film can provide certain learning and reference for other theaters.