What’s IP and why is it a BIG HIT in China’s film and television market?
The term Intellectual Property or IP is now frequently used by the Chinese film and television industry. Although it doesn’t sound like a new and super exciting word, it is creating major waves within China, and not for reason you may think.
IP could be a complete story or a concept, which has the potential to be developed into a film, drama, online games, music and any other commercial derived products. The better ones are usually well known online and have accumulated a large legion of fans.
There are key characteristics that an IP should equip to be a success: 1) filmable — it can be made into a movie or TV drama; 2) financeable — it can attract investors; 3) marketable — it is eye catching and can be marketed, so investors are willing to invest; 4) admirable — it should be indeed a quality work, otherwise the influence is temporary.
Most IP works are born from online novels and games, that provide a complete story and engaging characters. More importantly, they can be redeveloped into derived products. It is obvious that younger audiences are the targets. The popular genres of IP are ancient costume, magic, gongfu and romance.
A key quality of IP’s success is worthiness. That’s why developers are grabbing the best ones like crazy, which of course cost a fortune. There are some successful IP works that you can’t miss, such as My Sunshine (2015), Empresses in the Palace (2015), Nirvana in Fire (2015), Interprète (2016), and Ice Fantasy (2016). These dramas are broadcasted on traditional television channels as well as major online streaming platforms.
IP works are definitely a big hit. It might sound like an exaggeration but its true that these films and dramas attract the entire population’s attention. That’s why it is important to know about this.
Take Mojin-The Lost Legend (2015) for example. It accumulated a box office total of USD 230 million dollars (1.54 billion RBM) and became the third highest grossing domestic move in China, exceeding revenues of The Avengers 2: Alltronic Era.
The phenomenon of IP is quite similar to Hollywood’s purchase of literary property or underlying property. A developer would purchase an original script or novel from a writer in order to make it into a movie and other derived products.
Even though IP seems like a novice to the Chinese film and television industry, it is indeed not so new. Star Trek is an undeniable successful case study. It created significant commercial and cultural impact through series of product such as films, books, comics, games and magazines.
The rise of IP products in China reflects the appetite of China’s population, a large potential market and its commercial value. However, it is just in its infancy. We will see how the industry transforms this big hit and generates market value long term.
