Business
UPDATED: 13:53, October 18, 2004
Warner Brothers to launch China's first film-making venture
U.S. film giant Warner Brothers Pictures, the movie-making unit of Time Warner Inc., said it would set up its first movie production joint venture in China with State-owned China Film Group and the privately-run Hengdian Group.
The Beijing-based Warner China Film, the first film-making venture since the Chinese Government relaxed its laws governing the industry in December, would produce, market and distribute Chinese-language feature films, TV movies and animation, a joint statement said late Thursday.
Warner will hold 30 percent of the new venture, while China Film Group, the country¡¯s largest, will own 40 percent, with eastern Zhejiang Province-based conglomerate Hengdian Group taking the remainder.
The deal marks Warner Brothers' fifth in China in less than two years as the Time Warner unit seeks to capitalize on China's growing affluence and appetite for films.
Foreign entertainment companies have been eager to invest in the world's most populous country, eyeing a potential market of 1.3 billion consumers. Similarly, Chinese companies are eager to tap foreign financing and expertise.
Until the recent rule changes allowing overseas producers to own up to 75 percent stakes in Chinese film companies, Sino-foreign productions could only sign on to one movie deal at a time.
"Warner China Film marks a new milestone for the Chinese film industry and demonstrates that it is quickly opening to foreign investment," Yang Buting, chairman of the China Film Group, said.
Production budgets will range 12-50 million yuan (US$1.5-6.0 million) for feature films and 1.7-2.5 million yuan for TV movies.
Warner Brothers' latest expansion in China follows plans to build 40 movie theatres by 2008 through local partnerships as well as a deal with State-run Chinese Audio Video next month to open video sales and rental shops in leading cities.
Source: Shenzhen Daily/Agencies
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