With the Chinese film market in overdrive and expanding rapidly, it probably should come as no surprise that Hollywood would come sniffing around, looking for a chance to cash in. Warner Brothers studios looks to explore the market that others such as Paramount Pictures, DreamWorks Animation SKG Inc, Lions Gate Entertainment Corp and Walt Disney have already begun exploring. They entered into an agreement with a Chinese venture capital firm to produce Chinese language films.
According to Time online, "the film company reached an agreement with China's government-backed venture-capital firm China Media Capital (CMC) to establish Flagship Entertainment Group Ltd., which aims to exploit the Asian superpower's growing appetite for blockbuster movies." Flagship Entertainment Group Ltd is the new company that will blend Warner Brothers movie making and distribution network with China Media Capital's financial clout. The Time article noted that ticket sales jumped 34% since last year and are expected to rise above $10 billion dollars annually. Warner's will own 49% while CMC will 51%.
It is part of a global drive to penetrate the burgeoning Chinese market. Studios are having trouble getting around the censors and the quota system. Ben Cavender, Shanghai-based principal of China Market Research Group had this to say, via Reuters, "The subtext is all these studios are looking at how they can get better access to the China market."
The upside to the proliferation of platforms which to view content on is, quite simply, more content is needed. In China, though Hollywood films typically perform very well, smaller Chinese films are starting to gain footholds and compete with the bigger Hollywood fare. If China's economy holds strong and continue to grow, it wouldn't be at all surprising to see more joint ventures. Especially since, according to the same Reuters article, "Films that qualify as co-productions and meet various criteria are exempt from China's current quota of 34 imported films each year, and have an easier time navigating censorship issues with notoriously picky industry watchdogs."
We may be witnessing the true start of a world cinema.
