China Media Capital, Warner Bros seal film production deal

The move is seen as a boost to Sino- USA cultural ties ahead of President Xi Jinping’s visit to the United States this week. This new venture will be based in Hong Kong, China and will also have offices in Beijing and Los Angeles, California.

Flagship Entertainment will be owned 51percent by CMC – with Hong Kong broadcaster TVB holding 10 percent of the CMC-led consortium – and 49 percent by Warner Bros.

“We look forward to working with CMC in this exciting new venture, as we gain additional insight into the Chinese film industry”, Warner Bros. chairman and chief executive officer Kevin Tsujihara said in the statement.

Warner Bros. says it has signed a deal with China Media Capital to create a new company called Flagship Entertainment Group to create top-quality Chinese-language movies and premium content for the growing market in China.

“The subtext is all these studios are looking at how they can get better access to the China market”, said Ben Cavender, Shanghai-based principal of China Market Research Group, adding it also opened up channels to Chinese facilities and funding.

Said CMC founding chairman Ruigang Li, “CMC has been actively investing and operating throughout the ecosystem around the explosive content market in China and around the world”. This partnership with Hollywoods most iconic studio will bring Warner Bros deep experience in creative storytelling and unparalleled expertise in producing global titles to Chinas film industry, Ruigang said.

The new entity will develop, distribute and produce a slate of Chinese-language films, including global tent poles, for distribution in China and around the world.

China Media Capital is a pioneering private equity style fund that was started with backing from state companies, and has since attracted worldwide finance from top entertainment and media conglomerates including Warner Bros., WPP and Ratpac Entertainment.

“I and the current-term government attach great importance to cultural and creative industries in Hong Kong“.

Netflix, which streams films and TV shows to homes and mobile devices, earlier this month announced it was including Hong Kong as part of its global expansion.