Evaluation Of Movie Screenplay Investment

With the rapid growth of the movie market, movie industry has been one of the industries with brightest outlook and greatest potential. Thus, movie industry tends to be an eye-popping choice for investors. However, movie industry is risky for investments. Even though a few successful cases have shocked the market,90percent Chinese-made movies suffer losses while only10percent make profits when we see this in a whole landscape. This condition shows the current blindness of investors in movie industry due to their inadequate knowledge on movie products and the absence of a reasonable valuation method for assessing movie investments. Therefore, this thesis is aiming to establish a scientific and reasonable method in movie investment assessment—screenplay valuation method based on TBCI Standard.The first chapter introduces the background of the movie-investment-assessing issue and the reason to come up with this topic. It describes the current condition of movie industry and the problems in investing the movie industry. It also describes the meaning, logic and innovative thoughts of this thesis, and establishes a clear and reasonable way to assess the investing value of screenplay, with "screenplay" as its core,"Brand Economics" as its theoretical basis, and "TBCI brand credit degree" as its assessing standard.The second chapter gives the point of view in the works related to cultural products in and out of China, and analyzes whether the commonly used methods—market approach, income approach, and the cost approach, could be used in assessing the value of screenplay. In this chapter, we can draw a conclusion that the current valuations method towards cultural products and the3commonly used methods to assess intangible assets are not suitable ways to make a reasonable and scientific assessment on the value of the screenplay, which adds the importance of the establishment of a new assessing or valuation method targeting the investment to movie screenplay.Chapter3introduces the theoretical basis of Brand Valuation. Based on this theory, the thesis comes up with a movie screenplay investment valuation method using TBCI standard. This chapter also gives the definition and introduction of "Brand""Choice Cost" and "Brand Credit Degree", and makes a detailed description of the10factors in the TBCI standards. Besides, in this chapter we would discuss and explain how the Brand Credit Degree could add the value of the asset or why the increase of Brand Credit Degree could reduce the Choice Cost, and thus increase the demands in the market and then add the value and feasibility of the investment.Chapter4emphasizes the explanation of the importance of the movie screenplay, or in other words, why we use the valuation of movie screenplay as the assessment to judge the feasibility of the movie investment. To illustrate this, at first, the chapter describes the procedure of producing a movie product with pointing out the fundamental and deciding importance of the movie screenplay in all parts of the producing process:every part of the movie producing should be tightly subject to a high-level Brand-credit-degree screenplay in order to reduce the risk of every subset in the whole procedure and increase the quality of the movie. Besides, the chapter analyzes the specialties of movie products which result in the high risk of movie investments and increase the importance of making a reasonable evaluation at the beginning level on screenplay.Chapter5gives a detailed description of the assessing method of evaluating the investing value or potential of the movie screenplay—the Brand-credit-degree method (TBCI method) on movie screenplay evaluation. It describes the10factors in TBCI standard respectively, and shows how we could get a comprehensive overall point and make a credit and risk level for typical screenplay.The sixth chapter introduces a real assessment case—33days, through which the chapter gives an example of how to proceed the TBCI method as well as how to get the final overall grade and credit level judging the investing value of a typical movie screenplay for other possible movie screenplay assessment.