Summary of the Core Message
This news article suggests that China's film industry should adopt the "low-price breakthrough" strategy employed by Luckin Coffee: by setting ticket prices around 9.9 yuan, the cost for audiences to make trial and error decisions is reduced. This allows the market (through audience choices) to filter out the quality of films. Good films will gain sustained high box office success due to positive word-of-mouth, while poor-quality films will be quickly eliminated by negative reviews. Mediocre films will earn a reasonable profit, ultimately leading the industry from relying on marketing to make money to surviving on the quality of its content.
1. 9.9 yuan is not a loss—it's a filter for audience feedback
The essence of the 9.9 yuan price point is not to lose money on each ticket sold; rather, it aims to reduce the risk of disappointment for audiences. For example, if you spend 9.9 yuan on a cup of milk tea and it doesn't taste good, you won't buy it again, but if it does, you might buy more and even recommend it to friends. The same principle applies to movies:
- Audiences are willing to spend little money and not afraid of wasting it, so they are more open to trying more films—especially those with low production costs that lack mainstream popularity.
- Good films will attract more viewers because their quality justifies the price. For instance, the movie "The Eight-Arched Cage" initially attracted many viewers at a low price, and its positive reputation led to a box office of over 2 billion yuan.
- Poor-quality films, even at a low price, will receive negative reviews from audiences, resulting in no repeat business or recommendations, and they will quickly be phased out by the market—without relying on celebrity influence or marketing gimmicks.
2. The inspiration from Luckin Coffee's strategy: first compete on price to enter the market, then focus on quality to retain customers
Luckin Coffee initially used a 9.9 yuan coffee price to break into the market, attracting people who didn't usually drink coffee and quickly gaining customer loyalty. Later, it retained customers with innovative products like coconut latte and thick milk latte. The film industry can follow this approach:
- First, compete on price: Use low prices to draw audiences back to theaters (for example, after the pandemic, many found ticket prices above 30 yuan too high; a 9.9 yuan price might encourage them to return).
- Then, focus on quality: Low prices are just a starting point; whether customers stay depends on the content. Film producers must improve scripts and production quality. After all, if an audience spends 9.9 yuan on a poor-quality film, they may not be willing to pay even more for the next one. However, if they enjoy a good film, they might be willing to pay a higher price in the future.
3. Precise segmentation of three types of films: each finds its place
The 9.9 yuan strategy will help clarify the different segments within the film industry:
- Good films thrive: Movies like "The Wandering Earth 2" attract more initial viewers at low prices, and their reputation leads to higher attendance and higher overall box office revenue.
- Poor-quality films fail: Films that rely on celebrity appeal or weak plots will receive negative reviews and lose audiences, leading producers to stop making such films.
- Mediocre films earn a moderate profit: Low-budget, heartfelt films or light comedies may not be groundbreaking but are still appealing to specific audiences and can achieve decent box office results. They don't rely on marketing to make quick profits but on genuine audience interest.
4. Why China's film industry needs this strategy: to address long-standing issues
The current film industry faces three major problems:
- High ticket prices: The average ticket price in 2023 is around 35 yuan, which many consider too expensive, leading to a decline in attendance.
- Poor-quality films relying on marketing: Some films use celebrities and false promotions to attract viewers, but the producers still make money despite negative reviews.
- Good films being overlooked: Low-budget, quality films go unnoticed due to lack of marketing funding, resulting in poor box office performance.
The 9.9 yuan strategy addresses these issues by encouraging audiences to try new films, allowing good films to stand out, and forcing poor-quality films to be exposed. It helps the industry return to a focus on content as its core value.
Conclusion
The 9.9 yuan price point is not a magic solution; it's a tool to eliminate poor-quality films, give good films their due recognition, and help mediocre films find their proper place in the market. Just as Luckin Coffee used low prices to gain popularity and then retained customers with quality products, the film industry needs to first use low prices to attract audiences and then improve its content to achieve sustainable growth.