After breaking several records of midnight show, premiere day, etc. of Chinese mainland’s film and television market, the box office of World of Warcraft exceeded RMB 1.4 billion on June 20. Correspondingly, the derivatives of Warcraft are sold hotly. Now, the model of Doomhammer, characters’ Garage Kits and other hot items are out of stock in some theaters, which urges the dealers to replenish urgently.
In view of the first success in World of Warcraft derivatives market, analysts of cinemas industry pointed out that, as a super IP with 10 years’ history and more than 100 million fans in the world, Warcraft’s dolls and marketing models are just small part of the IP derivatives market. Optimistically, scene marketing relating to Warcraft will witness a RMB 500 million market space, which will change the profit model of “thinking highly of ticket sale and thinking little of derivative products” in mainland film and television market and create a new blue sea market. This fully proves that the potential value of hot IP films and televisions resources far exceeds the movie itself.
Think highly of ticket sale and think little of derivative products, a huge difference between IP marketing at home and abroad
The derivative products marketing in overseas market has a long history and has formed three main categories, including daily life derivatives (shoes, costume), toy derivatives (mecha, Garage Kits, plush toys, etc.) and scene derivatives( entity marketing scenario, IP creative materialization and entertainment experience derivatives). It has formed a complete industrial ecology, including copyright trade, creative development, product design, marketing channels, etc. The series of cartoons, films and derivative cultural products of Doraemon, which were created in 1969 and developed for almost half a century, are typical examples of daily life derivatives and toy derivatives marketing. Disney, the global culture and entertainment giant with the historical market value of over $200 billion, is the paradigm of scene derivatives marketing and shows the strong money-spinning ability of world’s top IP.
Now, more than 70% of the revenue comes from the movie derivative industry in Hollywood. China has become the second largest film market, but 90% of the revenue comes from box office and the embedded advertisements. The huge difference of box office and derivative performance at home and abroad fully proves that IP marketing in China is just in its infancy and a potential market beyond imagination is gestating. As a phenomenal event, IP marketing of Warcraft may become an important turning point of the industry.
Refusing to depend on ticket sale, PPTV develops IP derivatives as "the second market”
Marked by World of Warcraft, the domestic industry gradually deepens the understanding about IP derivatives market. Based on the insight into the trend, PPTV conducted deeper strategic cooperation with mTime.com, rights and interests holder of Warcraft IP derivatives, after obtaining its exclusive Internet copyright. PPTV will take scene derivatives as the entry point, create this high-quality IP into an entertainment scene through offline aggregation and offer immense experience.
Therefore, in addition to online operation and popularization of World of Warcraft in the early stage, PPTV also sponsored the Warcraft show in Sanlitun. A lot of stars, fans and PPTV members attended the show. At the same time, PPTV announced a series of strategic plans including overseas high-quality IP introduction, construction blueprint of IP derivatives franchise stores in the 2016 Shanghai International Film Festival which was just ended. PPTV also cooperates with the sponsor of the film festival to sell film festival derivatives through multiple channels i.e. site demonstration, online order, collection of some goods on site and sending of some goods by couriers.
With the introduction of more business models and channels, the marketing of super IP derivatives gets better. This is the general mobilization of PPTV fans online and offline, big data, marketing channels, store resources of Suning.com and strategic partners. The culture O2O service system, including IP incubation, derivative development, fans community marketing, link contents, IP propaganda and derivative realization of channels and E-commerce, is ready to come out. The future fact will prove that the box office has price and IP is priceless.