How can you become a star without money?

Chapter 101 The Pioneer of Web Series

IP stands for Intellectual Property.

Essentially, it is a cultural and creative carrier composed of copyright, patent rights, trademark rights, etc.

The concept of IP emerged relatively late in China because copyright protection was developed much later.

Its core value lies in the extensibility of the work itself, not in the single influence of the work, but in building a sustainable and expanding brand and influence. The best example of this is naturally the rights protection giant, Disney.

Before 2011, the only Chinese works that could barely be considered intellectual property were Jin Yong and Qiong Yao.

It wasn't until Tencent entered the entertainment industry in 2011 that the concept of IP was combined with the internet, laying the foundation for increased copyright awareness brought about by the "Sword Net" campaign.

The first domestic work to generate an IP concept should theoretically be the "Ghost Blows Out the Light" or "Tomb Raider" series. It not only proved its commercial value, but also built a sustainable brand influence, mainly reflected in the phenomenon of "generating electricity for love" in the multifaceted development of fan culture in film, music, and literature.

Therefore, to determine whether a work has IP value, we mainly need to see how many fans in its fan community are dedicated to creating content. In the era of short videos, the value of a personal IP is reflected in how many fans create clips for the creator.

The IP concept that Wang Yao proposed to Dongfang Xin at this time was still a very trendy and avant-garde thing for Berna.

After listening to Wang Yao's brief explanation, Dongfang Xin's brows remained furrowed. "It sounds like this IP concept is a bit vague."

"It's actually very simple. A successful IP needs to have a diverse influence that can be continuously developed across media, generations, and circles. For example, 'Calabash Brothers' was the first valuable IP seed for our generation, but because it couldn't continue to expand the world view or character branches of the work, it was difficult to develop into an IP."

In contrast, "Pleasant Goat and Big Big Wolf" is now preparing to expand its worldview into science fiction. Combined with its continuous development of each character, it actually has the potential to become an IP. For example, the box office and critical success of "Pleasant Goat and Big Big Wolf 2" this year will make audiences look forward to "Pleasant Goat and Big Big Wolf 3" next year. As long as it can continue to give audiences room for imagination and a sense of novelty, the value of the IP will increase infinitely. "Wang Yao gave an example.

"I understand. What Mr. Wang means is that in addition to some practical plans, we also need some IP project plans that don't have much value at present but will be very valuable in the future?" Dongfang Xin said thoughtfully.

"Yes, I've looked at the projects you've invested in over the past two years. They've basically been following industry trends, using big stars + comedy + medium-sized investment models like 'Big Soldier,' 'Sophie's Revenge,' and 'Stealing Wind' to guarantee returns, and star-studded + big themes + big investment models like 'Bodyguards and Assassins,' 'Red Cliff,' and 'Mulan' to gamble on box office numbers."

"But these projects are all one-off events; viewers won't think about their future development after watching them," Wang Yao laughed.

"Don't 'Red Cliff' and 'Mulan' count? These are works we created by imitating Marvel's DL model, so they should fit the IP you're talking about, right?" Dongfang Xin frowned.

"These two count, but there's a problem with these two IPs: if you can make a film about them, others can too. The core of an IP isn't just the content, but also the copyright."

There's a phenomenon in our film industry: when a genre becomes popular, all production companies rush in. Last year, "Nanjing" was a hit, so this year Director Zhang made "Jinling," and Huayi Brothers made "Tangshan." This is a typical example of projects following the market.
"The characteristic of IP is that projects drive the market, and you need to stimulate the audience's anticipation through IP attributes. This is the core difference that distinguishes a production company from other companies," Wang Yao corrected.

"Are sequels to 'Painted Skin,' 'Ip Man,' and 'Detective Dee' going to be made? Are they considered intellectual property?" Dongfang Xin asked.

"Yes, Huayi has become aware of this issue, but the problem also lies in the copyright of these IPs themselves. There are so many stories in the 'Strange Tales from a Chinese Studio' series, and everyone can make their own films. You make a film about Painted Skin, I make a film about Fox Spirits. The audience only cares about who makes the best film, and then they forget about it. Moreover, these can only be considered derivative IPs or fan works."

How do you get viewers to only watch works produced by your company and build a fan base for your own IP? The IP I'm talking about must meet two specific conditions: first, exclusive copyright, and second, audience stickiness," Wang Yao countered.

Dongfang Xin narrowed her eyes. "I understand. So the significance of IP isn't about grabbing box office revenue, it's about grabbing audiences?"

"It's about winning over fans. As the internet develops more and more rapidly, the fan effect accumulated by an IP will become stronger and stronger. In the past, you invested based on the original work's fan base, but in the future, the distinction between original work fans and film and television fans will become more and more obvious."

Moreover, good original works, such as those by Jin Yong, can indeed form an IP that has been adapted and remade over the years, which has made audiences tired of it. However, Qiong Yao's works are limited by their style, making it difficult for them to have a significant impact because the content cannot withstand scrutiny.

That's why we need fresh IPs to attract fans. To put it bluntly, the film and television industry will eventually be like the internet industry: users equal value. Wang Yao smiled.

"It sounds like IP and cultivating stars are very similar?" Dongfang Xin pondered.

“Yes, but the advantage of IP is that as long as you own the copyright, it will always be yours. But celebrities are out of your control. For example, the celebrities you are currently working closely with are the foundation of your IPO. If they were to refuse to work with you, wouldn’t your valuation collapse instantly?” Wang Yao chuckled.

"So, if President Wang collaborates with us, he will focus on the IP direction?" Dongfang Xin asked knowingly.

"No, it depends on what kind of services your company wants. If you want services related to box office, publicity, or even artist management, I can provide those, but I personally feel that the improvement in these areas wouldn't be significant." Wang Yao shook his head.

"If we collaborate on an IP project, what kind of results can we expect to see before November?" Dongfang Xin asked.

“It depends on the project budget.” Wang Yao raised the corners of his mouth. “The process of screening and incubation is not something that can be done overnight, and not every IP seed can be successfully incubated. A project requires at least 2000 million yuan and a cycle of ten months. If you want to see results quickly, the more you incubate at the same time, the greater the probability of seeing results.”

"That sounds like a huge investment. This means we can't guarantee profits by the end of the year," Dongfang Xin frowned.

This year's expected net profit is less than 100 million yuan. If all of it is invested in new projects, and we end up with a deficit by the end of the year, wouldn't that be disastrous?

Not to mention the board of directors, even she wouldn't agree.

"Marvel's original comics have decades of content accumulation. It took hundreds of millions of dollars and more than a decade to develop a Spider-Man and an Iron Man, but the value of other derivative IPs has also increased subsequently."

Disney acquired Marvel this year, valuing the original works at $40 billion. With the development of multi-dimensional channels and platforms, it could grow at least several dozen times in size, which of course requires a lot of money. Wang Yao smiled.

"Is there a safer way?" Dongfang Xin joked.

"Yes." Wang Yao nodded.

"Ah." Dongfang Xin was stunned. She was just joking; she didn't expect it to actually happen.
“I recently talked to Wang Jinhua about variety show projects. They have short investment cycles and quick returns. If everything goes smoothly before the end of the year, they can generate more than one-fifth more revenue for you,” Wang Yao said.

"One-fifth?" Dongfang Xin was surprised.

That means an additional ten million US dollars in revenue? That's equivalent to a share of a film that grossed 2 million US dollars.

"You mean, you have a variety show that can rival 'If You Are the One'?" Dongfang Xin asked again to confirm.

The variety show field has always been the exclusive domain of major TV stations, mainly because it relies too heavily on advertising revenue, has high censorship standards, and its commercial value is not recognized.

Even a long-running show like "Huanben," which has been around for over a decade, only manages to generate hundreds of millions in advertising revenue annually, thanks to its high frequency of 44 episodes per year. This year, Jiangsu TV's "If You Are the One" managed to stand out, reportedly securing an exclusive title sponsorship of 2 million yuan, which is also because sponsors in the dating industry are relatively wealthy.

Most variety shows are considered high-quality if they generate over ten million yuan in advertising revenue throughout the year, so most established entertainment companies don't really care about this lucrative market.

But now Wang Yao says he can create a variety show comparable to "Happy Camp" and "Non-Disturbance" in a year, which is indeed quite shocking.

“It might not be just one; it could be multiple.” Wang Yao shook his head.

"Could you tell me what kind of variety show it is?" Dongfang Xin asked curiously.

If Berna can develop revenue streams from variety shows, it will definitely be a significant advantage for its IPO.

"I can only say it's in the cultural field, but the specific projects haven't been finalized yet," Wang Yao said with a slight smile.

“Compared to IP, variety shows are indeed closer.” Dongfang Xin smiled. “Then let’s sign a one-year cooperation agreement for new media promotion first. As for the variety show, I still need to discuss it with other departments.”

"The market rewards those who are insightful the most. The trend of IP is irreversible and it is also a symbol of assets. Miss Dongfang can discuss this seriously internally." Wang Yao finally left some bait.

Finally, the two parties signed the same annual framework agreement as Huayi, worth 30 million yuan, with a total annual CPM of 3000 billion exposures, plus 100 million complimentary tickets, but with a specific partnership with Berna Cinemas.

Berna's contract is easier to fulfill than Huayi's because their main films this year, "The Gunman" and "The Laughing King," are easy to promote.

The main entity in this contract is Wang Yao's own Xinghuo Media. He will subcontract 500 million yuan to Kanpianer.com for execution, and the rest will be profit.

After seeing Wang Yao off, Dongfang Xin quickly returned to the conference room, where several more people had already joined.

Ignoring everyone else, Dongfang Xin briefly recounted her communication with Wang Yao to Yu Dong, the boss at the head of the table.

"Ridiculous! A paparazzi who stirs up trouble and spreads rumors, does he really think he's the leader in the film and television industry?" Before Yu Dong could speak, the middle-aged man in the lower position mocked.

"President Zhao, please don't say that. Mr. Wang works in internet new media, which is different from paparazzi." Dongfang Xin glanced indifferently at Zhao Tianzheng, the vice president of Berna.

"Xiao Xin is right, Lao Zhao, young people have their advantages," Yu Dong said with a smile. "But this kid's vision is truly remarkable. No wonder he was able to stir up such a storm in the industry in such a short time by using the internet."

"That's right, I also think that the film and television industry will very likely adopt the same style as internet companies in the future." Yu Dong first affirmed Wang Yao's theory, then smiled and said, "But regarding IP, I think it's still a bit premature. His example of Marvel is inappropriate. The Western entertainment industry is already well-developed, from production to the market, but our domestic industry is still fragmented."
It's not like no one in Hong Kong has considered similar development directions before; Xu Ke and his team tried it, but failed. Our focus going forward should still be on special effects. The success of *Avatar* will inevitably drive the development of 3D special effects films.

However, he did remind me that "Pleasant Goat and Big Big Wolf" is indeed a good IP, and we could try investing more in similar works; the family-oriented market still has great potential.

"Pleasant Goat and Big Big Wolf 2" has grossed nearly 120 million yuan at the box office, with an investment of only over 10 million yuan, not even including subsidies. It has a tenfold return on investment, making it the biggest beneficiary of the Spring Festival film season.

"As for variety shows," Yu Dong pondered for a moment, "wait for Wang Jinhua's reaction and see the lineup. Sponsors invest in these shows because they're after the talent."

Dongfang Xin nodded without saying much, and then they began to discuss the progress of several projects after the New Year. When they talked about whether there were any other areas that could be expanded, Zhao Tianzheng spoke up again.

"Mr. Yu, that kid's company is invested by Meishe. Since he won't accept the acquisition, we can indirectly control the company by acquiring Meishe."

“That’s a good idea, and Meishe’s current business system is already profitable. Although it’s not a large company, it can still provide some talent support,” another shareholder chimed in.

“Maybe there’s still a chance to replicate the success of internet celebrities like Qu Shou,” Zhao Tianzheng said with a smile.

Yu Dong thought for a moment, "We can talk to them about this first and see what Meishe thinks. After all, I heard they have plans to go public in the next two years, and their valuation is said to be 2 million?"

"It's not that high, the real valuation is only around 1 million," Zhao Tianzheng said with a smile.

"Mr. Zhao, that's last year's data. Because of the added value from Qu Shou and Ma Ruo of Tianhuo Network Media, the industry's current assessment is already 2 million yuan," Dongfang Xin chuckled.

Zhao Tianzheng was taken aback upon hearing this.

"Oh? This young Mr. Wang's company actually gave Meishe such a high valuation?" Yu Dong became interested upon hearing this.

"Does Xiao Xin mean that Qu Shou and Ma Ruo are now worth almost as much as Fan Bingbing?" Zhao Tianzheng asked doubtfully.

“That’s not the case. The main problem is that Tianhuo’s accelerated training method for artists is overvalued. In the past, it took about three years to train a second-tier artist. If we use the Tianhuo model, it can be compressed to 2-3 months, and it seems that we can incubate multiple artists at the same time.” Dongfang Xin shook her head.

"Skyfire Mode?" Yu Dong raised an eyebrow and smiled. "This young CEO Wang has certainly brought a lot of new things to the industry."

"Maybe this is what he meant by 'Internetization'?" Dongfang Xin said with a smile.

"Let's try contacting Meishe first. If it's too expensive, forget it. Old Zhao, I'll leave this to you," Yu Dong said with a smile.

"Don't worry, Mr. Yu." Zhao Tianzheng was overjoyed to hear this, after all, overseeing such a large acquisition project meant that the opportunities and potential profits were considerable.

"Xiao Xin, you continue to liaise with Wang Yao. We just signed Tong Yao, right? Let's see if we can use the Tianhuo model to package him. If we can create a second Zhang Ziyi, it might have a surprising effect," Yu Dong said with a smile.

Beijing is a cultural center, and with supporting universities such as Beijing Radio & Television University, Central Academy of Drama, and Beijing Dance Academy, it is the first choice for most entrepreneurs in related fields.

Among them, Yonghe Cultural Industry Park is one of the most important clusters of the cultural and entertainment industry in Beijing.

Since its inception in 06, the park has attracted hundreds of millions of yuan in investment and government subsidies every year since early 10, fostering more than 200 companies of all sizes. These companies are mainly in two categories: digital content technology (online games, animation production, film and television post-production) and cultural and creative industries (advertising media, fashion planning, art economy), plus a few copyright and cultural tourism projects.

Among the more well-known ones are Fiber Optic Media and CCTV Animation. After being introduced to the park's director by Ren Quan and learning about the relevant welfare policies, Wang Yao decided to contribute to the cultural and creative industries in Beijing.

They moved into the park and founded [Spark Entertainment Technology Company], whose main business is cultural copyright and animation and film production.

Because the "Beijing 11th Five-Year Plan for the Development of Cultural and Creative Industries" provides a subsidy of 30% of the production cost for eligible film and television production projects, provides up to 5 million yuan in funding support for R&D investment in animation companies, and various tax benefits.

Joining now means you can still enjoy these benefits; otherwise, the policy will change next year.

When I talked to Dongfang Xin about IP trends, I wanted to use their large capital to pave the way. Developing IP in 2010 was a dead end, since copyright-related rules were not perfect, the cost of protecting rights was too high, and most IPs suitable for development required the special effects industry as a foundation.

However, it is already possible to plan ahead, and the largest source of IP in China in the future will be the online novel industry. Currently, 80% of the online literature industry in China is in the hands of Shanda.

In 2010, the total size of the digital literature market (online literature) was 1.3 million, but the piracy market was 50 billion.

With a market size of around 1.6 million online literature writers, the output value was only 1.3 million. It's easy to imagine how much of a bargain there was to be made in online literature at that time.

Shanda Literature is currently valued at around 10 billion yuan, and it is almost impossible for it to be sold because it is the main sector that Mr. Chen continuously injects capital into Shanda.

Moreover, Wang Yao doesn't have that much money for acquisitions right now, but he can still get involved.

Currently, the entire market consists of only three parties: Shanda, Perfect World, and Kongzhong.

The first two rely on paid subscription models to generate profits, while the latter leverages its channel advantages to develop a "new media wireless online literature" track, quietly making a fortune.

The representative of this wireless online novel style is the style of "Dragon King's Son-in-Law" and "Country School Beauty". In his previous life, Wang Yao's most profitable period was when he and his cousin Zhou Cong founded a "ghostwriter" studio with the help of the new media wireless style around 16 years ago and completed their initial capital accumulation.

During that period, the monthly royalties of several million yuan were like picking up money off the ground.

After all, there were far more monks than porridge, and readers back then were really not picky.

The same hit storyline, with a different name, a different character, and a different setting, can be used to create several more hit books.

In 2010, new media wireless channels were just emerging. With the help of the predecessors of mobile reading bases (such as Migu), although they did not develop to a terrifying extent, they were still able to support a group of authors.

Currently, the average income of lower-level authors in online literature is less than 2000 yuan per month. It will take until mobile devices become widespread to drive up the average income of the entire industry.

However, many top authors have indeed reached an annual income of millions.

Wang Yao's Xinghuo Literature Network was established to accumulate IPs, so it is very generous in terms of revenue sharing. Ordinary authors can get 28%, which is 10% higher than Feilu next door. With the combination of social insurance and housing fund benefits plus high revenue sharing, it should be able to poach many editors from neighboring peers.

With his cousin Zhou Cong's talent as a "Dragon King's son-in-law," the website is poised to profit from mobile wireless channels in its early stages. Later, its own copyrighted adaptations and market sales will likely give most traditional production companies a small shock.

However, during the preparation stage, a suitable mascot was lacking.

However, they first established the Xinghuo Culture brand, and the park approved a 200-square-meter office for them, with an annual rent of 300,000 yuan, which is indeed a preferential treatment in this location.

After two busy days, we finally have a base in the capital.

The main business here is Xinghuo Literature Network and post-production.

Since there are subsidies, the online short drama (micro-drama) business can be launched ahead of schedule.

Wang Yao transferred Luo Hongming and his team from Shanghai to Beijing. However, relying solely on "School Beauty is Here" was not enough to support this business line. After thinking it over, Wang Yao considered several candidates for the role of the pioneer of web dramas.

Dapeng: He has just successfully entered the Liaoning TV host circle through the internet effect of "Debade". Sohu is preparing to use him as a hub to carry out comprehensive cooperation with Benshan Media. The cost of poaching him is relatively high.

Chen Xiang: It seems he's also working at the TV station.

The Smiling Brothers: They're probably pretty much falling apart by now.

Zheng Yun: The pioneer of the micro-film era. Her team is already in place. I wonder if Tencent's entertainment department has signed a cooperation agreement with her, since she has a high reach on QQ Space.

Wang Nima: I should prepare to start a business with Rage Comics.

Oh, and there's also the Chopstick Brothers.

Wang Yao drafted a list and handed it over to headhunting firms to contact.

The first to respond was Brother Chopsticks, who was also in Beijing.

　感谢月映江海、古月耀今朝、好大一颗、郑博古、跳跃的空格键、万里血票、临夏老武、枭魈枭魈、Richard517、你中奖啦、雪舞情岚、支宫阙、寻meng、飞翔的湘北。若非所宇、zcy8568800、wangL、wison11、gspbc、miumiu5CHEN、血之药、hurry~、baosha、冉冉升起的冉126、闲着干点啥、失乐缘、龙王123777、亦安雅、老书虫黑瓜、谜途的龙哥、大地匈奴、瓜尔佳夏末、那是深刻、水粉誓言、挚爱皇冠Tara、微笑开膛手、WINDWIND、恶魔的微笑、食之无所得、紫霄依韵、橘座_aC、陈诺诺诺、gaowenbo、魂梦（青灰）、养活清晾、关山度若、destinyzxx、点一首老哥、龙宇鹰扬、大煞风景的、绍程、上帝的休息日、东兑木、舞梦中华、尘星锁月、鸟山香一、喜欢茶妹、

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(End of this chapter)