Business model for IP adaptation in China. (CGTN Photo)
"Intellectual Property" or "IP" for short is part of the lingo in today's entertainment industry in China.
IP can be a story or a concept that could be adapted into a movie, television series, computer games and any other commercial derived products and applications.
Intellectual property adaptations have been a pillar of Chinese film-making and drama-making for decades. They are similar to Hollywood's purchase of literary property or underlying property.
Most domestic IP works are born from novels, comics or games that provide a complete story and engaging characters. And the most popular ones are those with romantic, mythological and historic narratives.
Business models
There are two models in the Chinese market: A company can create self-owned IP products or cooperate with cross-field partners.
The first model is often used by content creators who have resources to operate their own downstream business including films, online dramas, games and entertainment shows.
IP ownership is significant as it allows continuous creation and various business models, such as derived products.
Chinese online entertainment service iQiyi launched its Yunteng Plan, an online literature IP program, in 2017.
The second model is often used by the consumption sectors, particularly retail. For example, Alibaba's film affiliate AliFilm cooperated with the Pokemon Company in an event that brought over 30 million U.S. dollars to the Chinese tech behemoth.
A successful IP is adaptable, profitable, marketable and admirable.
First, the IP can be made into a film or a TV drama. If it is profitable and marketable it can attract investors.
Most importantly, the IP should be admirable – without quality work, a product's influence is only temporary.
IP adaptations
The models of IP adaptation plus drama and IP adaptation plus film are commonly used in the market.
Domestic IP films and IP dramas have strong influences on the domestic box office.
For example, "Candle in the Tomb" was adapted into several films, dramas and computer games. It's a fantasy novel series written by Zhang Muye about a team of grave robbers seeking hidden treasures.
The first book was published online in 2006. It quickly became a bestseller in China with an estimated readership of six million.
IP adaptation & film
"Candle in the Tomb" was adapted into several films in China.
"Chronicles of the Ghostly Tribe" was directed by Lu Chuan and raked in 106 million U.S. dollars at the box office; "Mojin－The Lost Legend" by Wu Ershan grossed 278.3 million U.S. dollars; and "Time Raiders" starred one of China's most popular young actor Lu Han.
A popular IP is a safe bet at the box office because it already boasts a considerable fan base.
Ideally, the film becomes such a hit that it can be developed into a bankable franchise.
IP adaptation & drama
"Candle in the Tomb" was also adapted into TV dramas and online dramas.
The eponymous online drama received acclaim for the acting crew's performance as well as for staying true to the novel. It amassed over five billion views in total.
Original IP and IP adaptations are essential for the success of the industry's nascent ancillaries and downstream market, and are increasingly taking a bigger part of the overall revenue pie.
And so, Chinese companies are going all out to create authentic content, without sacrificing quality.
