The Impact of Film Intellectual Property Value on Equity Financing Efficiency of Film and Television Companies: A Case Study of Enlight Media

Abstract

This paper examines Enlight Media as an instance study to investigate the mechanisms through which the value of film and television intellectual property (IP) influences the efficiency of equity financing for media companies. By reviewing the literature, this article concludes that highvalue intellectual properties, such as ‘Ne Zha’ and ‘Jiang Ziya’, significantly enhance equity financing efficiency by boosting investor confidence, lowering financing costs (with a fee rate as low as 2%), and accelerating the capital acquisition process (20% faster than the industry average). For instance, following the release of ‘Ne Zha 2’, Enlight Media’s market capitalization surpassed 100 billion yuan, while the dilution rate from its targeted share issuance (<5%) remained well below the industry average of 8–10%. Nevertheless, the volatility of intellectual property value (evidenced by a 25% drop in stock price due to a single project delay) and the lengthy development cycle (3–5 years) often conflict with short-term financing requirements, thereby limiting fund utilization efficiency—only 40% of the funds raised in 2020 were deployed. The study recommends reinforcing the development of the intellectual property industrial chain to stabilize value expectations and refining financing strategies to better align with the IP lifecycle.