Li Bonan, the most profitable drama director Photos: CFP

Downturn was the keyword of last year's drama market, with unprofessional investors, dramas at different qualities and inflation-affected consuming power being the major challenges. In 2011, the number of new dramas will increase and many drama producers were quite optimistic about the prospects of cost recovery and profits.

Well-known drama director Meng Jinghui is rehearsing Transformation of Butterfly, his first drama of 2011 that would perform in public next Thursday. His studio also announced that they would offer more new dramas in 2011. Several other drama studios introduced their new dramas as well, like Li Bonan's Studio, Zheteng Cultural Company and Longma Drama Studio.

However, Zhang Changcheng, general manager of Fangjia Hutong No. 46 Cultural and Creative Industry Park, said that at present the new dramas performed at his theater are fewer than old ones, mainly due to limited capital, but it's sure that new dramas would be offered this year. "Dramas pay more attention to profits and it's hard to guarantee consumers' spending power, so some groups, including us, choose the safe strategy of performing old dramas, but any good drama groups should offer new works to maintain sustained competitiveness, despite of big risks," he said. 

Government incentives 

"Beijing Municipal Government has issued the policy that dramas playing in small theaters more than 100 times can receive up to one million yuan as subsidy," Fu Ruoyan, director of Zheteng Cultural Company, said. Two of their dramas have been performed over 100 times and they are preparing to apply for that subsidy. The company got the subsidy from Shanghai Jing'an District Government last year.

For private companies that are always short of capital, the maximum incentive of one million yuan surely increases a big capital resource.

Customization and sponsorship

"We basically relied on selling tickets, but it produced little improvements to our business. Besides the government incentives this year, the scale of enterprise sponsorship and customization is increasing." Fu predicts that there would not be a big increase of output of drama market in Beijing this year, but for drama producers, they have more capital recovery channels.

He said last year his company produced a drama with business sponsorship from Blue Focus Group. Later he contacted several sponsors and was able to find a sponsor for every drama in 2011. He explained that one of his friends in Shanghai has recently got 200,000 yuan ($30,303)in sponsorship from enterprises.

"People pay more attention to public relations through drama nowadays. Intensified competition makes the price to embed the product in films and TV series quite high, while it's a new way to try product placement in dramas for enterprises, and the form of long-term live drama shows is just like the promotion activities organized by enterprises themselves, so the new way would have better publicity effects."

Competitive investors joining in

Fu Weibo, general manager of East Pioneer Theater, said many investors understand neither the operation of small theaters nor the difficulty of their survival; instead, they believe promotion of small theaters is just like other commodities, which can be done through sending small gifts. Compared with last year, institutional investors have joined the market this year and Fu Ruoyan believed that it could be expected that these experienced and competent investors could increase the market volume of the drama industry.

For example qidian.com, the largest website of original literary works, reached an agreement with Shanghai Modern Theatre early this year for a 3-year cooperation that would offer six dramas in 2011, reflecting its expansion of industrial chains. Chen Min, principal of qidian.com said, "The major purpose of our large-scale march into the drama sector is not economic profits, but more possibilities of cultural cooperation."

Against group-purchasing

"We try to increase the creation of new dramas since this year and will produce at least one drama every year," Tian Xu, drama producer of Li Bonan's Studio, said with excitement. In his opinion, one important reason that led to market slump in 2010 was the disturbance of group-purchasing websites. In recent days, some drama groups in Shanghai announced they'd be boycotting group-purchasing and some in Beijing also prepared to do the same.

Tian said that most drama producers are privately owned small groups. It's understandable that they increase popularity through group purchasing, but he said it's undoubtedly a temporary relief that will result in disasters.

"For mature drama brands in Beijing, there are downturns, but not quite as severe, so that means drama quality is the key to scramble for markets," Tian said, explaining that his company would never participate in grouppurchasing again in 2011.

Global Times