Not so long ago Gmbox already informed about the dizzying financial success of Tencent . Now I would like to concentrate on the future plans of the owners of League of Legends in the field of intellectual property. But to begin with – quite a bit of history, that it is clear, as the Chinese company from its humble beginnings reached today’s excessive ambitions.
Tencent was founded in 1998, the year, and its first product was a popular instant messenger QQ (no, it’s not a rip-off ICQ to, well, you). In 2004, the company first listed its shares on the market, and then hit the online game. But it was fun in a style checkers, naval combat, or – at best – chess. Already at that time the main rival Tencent, NetEase, became very well to make a model of free-to-play.
In Tencent frankly admit to ourselves: a classic one is surprised, to develop their own game is impossible, so it is better to concentrate all efforts on the licensing of high-quality foreign products, distributing them at the expense of popularity and coverage of the most QQ. In 2008, Tencent acquired a number of successful licensing in the United States and South Korea. And if Dungeon & Fighter, we have practically unknown, something about CrossFire and League of Legends is not heard only the lazy Russian gamers.
CrossFire recently passed a bit – had to give up the position of CS: GO, but LoL reigns on his throne unchallenged. Is that DOTA 2 acts as a power broker, but this is detail. Of course, Tencent has noticed the growing popularity of League of Legends, and decided to only one license is not limited. Chinese share in project initially increased from 22 to 93-x, and then to 100%.
Why Tencent relied on LoL? Because MOV bit like QQ. It may seem strange, but the system messaging and multiplayer games do have something in common, namely the business model. Do you want to be the messenger is not like everyone else? Want cool avatars, emoticons and emouty? Come across. Exactly the same system applies in LoL: cosmetics for your favorite champion is not cheap.
Just cosmetics – is the main bread of the Chinese company. Unlike the giants of Silicon Valley, Tencent never really to rely on advertising. For comparison, advertising revenues account for 90% of Google’s total revenue, from Facebook – all 95%. In Tencent only 17%, well lion’s share of the cash flow – 78% – it is just for Plaschik LoL and faces to QQ. 78% of the $ 16 billion a year. More than 12 yards dollars a year. At Smiley and skins. If someone does not know yet, stop for a second and vote scale.
Moreover, the model works particularly well is in China during the official ban on the console and the most cruel of piracy has led to the fact that buying a boxed version of AAA games in China – still a relative rarity. In this case, drain the same amount in an application that was originally free – it’s for a Chinese citizen in the order of things.
Despite the huge success, Tencent has decided not to be limited to only one make-up – it’s not Oriflame and Avon, in the end! In 2011, the company began to operate in accordance with its new strategy of “pan-entertainment”. I do not mean Polish gentleman, and not even the Greek god of cattle, and a total coverage of all areas of the entertainment industry. In 2012, there were comics and animation of Tencent, in 2013 the company began publishing e-books, as well, in 2014, Tencent Pictures has been registered, and this is a step in a great movie.
Such a strategy reminiscent of Disney, the studio of the great animator only repelled by the animation, and the launch pad Tencent – this game. Moreover, in some aspects of Chinese novice already outshines its Western teachers. For example, Disney Company bought Marvel for $ 4 billion in 2009, the year, and Lucasfilm in 2012 – exactly the same. And Tencent is only one 2016 zabyudzhetirovala costs of mergers / acquisitions in the amount of nearly $ 21 billion.
Imposing capital Tencent already finds application: buy Finnish Supercell, created the legendary Clash of Clans and Clash Royale, can be compared with the transaction Disney-Lucasfilm. Part of the creative team of “The Simpsons” and the studio that created “Futurama” is already preparing a series of animated films with the characters Supercell – Clash-a-Rama. Meanwhile, Riot launched merchandise and board game of LoL, and began experimenting with animation.
Like a real space monsters from Japanese hentai, Tencent is trying to cover its tentacles all areas of entertainment, but the main goal – a movie. According to experts, in the near future China’s film market will grow to $ 10.5 billion per year, and will give way to the United States only.
The most successful example of Tencent victories in the new field of cinema – Warcraft. Of course, in the US the film grossed only $ 47 million, but in China – $ 221 million, which allowed him to break into the top-3 for the year at the box office. Tencent prefers the IP, the more familiar for the Chinese film fans: science fiction, comics and just fantasy.