Core view
In 2021, under the multiple effects of deepening reform on the supply side, scarce traffic on the demand side and the high base of the industry in 2020, the growth rate of China's game industry fell after rising in 2020, and the growth of the mobile game market hit a new low. In 2021, the actual sales revenue of China's game market was 296.5 billion yuan, a year-on-year increase of 6.4%. China's mobile game market is expected to achieve an annual sales revenue of 225.5 billion yuan, a year-on-year increase of 7.6%, significantly lower than the 32.6% increase catalyzed by the domestic economy in 2020. Under the high base, the growth of game revenue from going to sea has slowed down, but the share of going to sea has increased steadily. In 2021, the actual sales revenue of China's independent R & D overseas market reached US $18.013 billion, a year-on-year increase of 16.6%, and the growth rate decreased by 17pct. China Network audio-visual program Service Association issued the detailed rules for the audit standards of network short video content (2021) (hereinafter referred to as the "new regulations") ）。 The new regulations are expected to promote the short video platform to speed up the revision of content audit standards, and deal with illegal accounts and videos by taking off the shelf and sealing. At the same time, as film and television second innovation is an important content required by short video users, the new regulations are also expected to promote the short video platform to speed up the negotiation with film and television content copyright owners. It is not ruled out that using the music copyright procurement mode for reference, the licensing method of purchasing film and television copyright in large quantities and providing users with editing materials for free or charge is adopted. The contraction of industry capacity and the contradiction between content supply and demand will benefit the leading enterprises in the drama production industry, and the optimization of copyright protection environment is expected to gain enterprise performance in the long term. It is recommended to pay attention to Zhejiang Huace Film And Tv Co.Ltd(300133) and Mango Excellent Media Co.Ltd(300413) .
Risk warning: covid-19 epidemic prevention and control; Required consumer price; China's regulatory policy; Overseas Internet market policy.
Market performance review: CITIC media index rose or fell by + 6.42% throughout the week, outperforming Shanghai Composite Index, Shenzhen Composite Index and gem index, ranking first among 30 CITIC primary industries. From the perspective of subdivided industries, the animation sector performed best last week, with CITIC's tertiary index up or down + 16.42%, followed by internet film and television audio, information search and aggregation.
Industry highlights: the Beijing Film Bureau formulated and the Beijing CDC released a new version of the guidelines for epidemic prevention and control in Beijing Film screening venues| The 2021 annual conference of China's game industry was held| The press and Publication Administration will implement the positive energy leading plan for online games| China Network audio-visual program Service Association issued the detailed rules on the standards for the review of online short video content (2021). | iqiyi updated the subscription price of gold VIP members from 0:00 on December 16, with a price increase of 8.62-20%. The public beta of the mobile game "magic tower" topped the IOS free list immediately after its launch. | MIHA Tour "original God" The mobile terminal's overseas revenue increased by 60.5% month on month in November, returning to the top of the list of mobile travel revenue| Krafton's "pubg: new state" ranked first in the global mobile game download list in November, and Garena's "free fire" ranked second|
