Mar 26, 2020 (China Knowledge) - Maoyan Entertainment (1896) and Tencent (0700) have reached a new cooperation in film and TV series' promotion and distribution. That is, Tencent will provide Maoyan with such services, and latter will pay for related service fees.
This cooperation mainly includes two aspects. First, Tencent will provide online and offline promotional services for Maoyan's movies and TV series, and hold fans’ activities and promotional road shows. Second, in terms of distribution, Tencent will coordinate with Maoyan to distribute promotional contents to cinemas and TV stations, set marketing strategies and monitor box office performance and market feedback.
Since 2017 Maoyan has already hired Tencent for these services, but only several modest deals. Because Tencent's platform and media resources are rich and some of them are unique, these are complementary to the traditional channels that Maoyan engages. Just last July both parties had set up an alliance which Maoyan has worked closely with Tencent in a number of areas, including film and TV series' promotion and distribution.
Maoyan's board expects its 4 to 6 upcoming movies or TV series will be given to Tencent for promotion and distribution this year. The maximum expense is expected to reach as much as RMB 50 mln in 2020. The figure is about 31 times than that of 2019, recorded RMB 1.61 mln.
The company's 2019 annual report released on Mar 24 shows its cost on content promotion and distribution registered RMB 350 mln, up 30% year on year. It accounts for 8.2% of total revenue, up 10 percentage points year on year.
This agreement unveils Maoyan’s heavy reliance on Tencent's broadcast channels. The surge on services fees Maoyan paid to Tencent may affect its future cost, but deep binding with Tencent will definitely drive up Maoyan's efficiency and effectiveness of its marketing and sales.
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