Dalian Wanda Lands on Hollywood Shores - A New Turning Point in the Movie Business

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I wanted to see it for myself, the arrival of a giant player from across the Pacific Ocean, landing on our shores to declare: We have arrived.

Everyone who was anyone in the movie business made it their business to be at Dalian Wanda’s presentation on Monday, cramming into a smallish theater at LACMA in Los Angeles, filling the seats and lining the walls to hear what CEO Wang Jianlin had to say.

L.A. Mayor Eric Garcetti was there, as was Motion Picture Academy President Cheryl Boone Isaacs, producer Avi Arad, Lionsgate executive Patrick Wachsberger and, of course, Thomas Tull, whose Legendary Pictures Wanda acquired for the stunning sum of $3.5 billion less than a year ago. Also, a lot of pretty ladies in peach floor-length sequined gowns.

Also Read: Wanda's China Mega-Studio Seeks Hollywood Shoots With Huge Rebate, $750 Million in Incentives

What Wang Jianlin said, essentially, was that China is going to dominate global moviegoing for the foreseeable future and it intends to dominate movie production, too.

“Any negative outlook on China’s film market is incorrect,” he told the room via simultaneous translation, noting that despite some economic slowdown elsewhere, the Chinese box office is growing at about 15 percent per year — a “sustainable” figure he said that is expected to continue for years.

Backing up his claim is money, lots of it, and consumer demand, a lot of it.

A few points to ponder:

* In 2016 the Chinese box office will reach $8 billion
* By 2018 the box office will surpass North America to reach $10 billion
* By 2026 the Chinese movie market will be $30 billion, 40 percent of the global box office

Then he showed a short film narrated by Matt Damon unveiling a “movie metropolis” in Qingdao (in China’s eastern Shandong province), aiming to become a kind of Hollywood East.

Qingdao Movie Metropolis is to be an $8.2 billion, 408-acre mega studio that will include Wanda Studios, China’s first world-class production facility, and much more: sound stages, a back lot, a theme park, a convention center, six resort hotels, a marina, international schools and China’s largest cinema, with 5,300 seats.

Also Read: China's Wanda Group CEO Says Hollywood Needs to 'Go Back to Storytelling'

And to draw Hollywood producers to the site, Wanda also announced a 40 percent production rebate and a stunning $750 million in production funding for the next five years. The official press release noted almost as an afterthought: “By 2020, Wanda Group aims to become a world-class multinational corporation with assets of $200 billion, market capitalization of $200 billion, revenue of $100 billion and net profits of $10 billion.”

So their ambitions are not exactly subtle.

For those who were here in Hollywood when the German money was flush, when the Japanese were spending big in media and entertainment, when the Gulf Arabs were throwing around cash, the China foray may have a familiar feel.

I remember visiting cash-rich Dubai and Abu Dhabi in fall 2008 just as the world financial markets were failing, and being given a tour around the massive production facilities that were being built with the aim of making the Arabian Gulf a hub for global movie and television production.

But the financial crisis endured, oil prices fell and that never happened.

China is different, and it feels like everyone knows it. Wanda has lined up allies in Hollywood – not just Tull but AMPAS elder statesman Hawk Koch, and Boone Isaacs, who got Wanda to endow a wing in the new AMPAS museum.

Wang was no supplicant in his evening presentation. He didn’t hesitate to tell Hollywood how they should fix their storytelling ills: “You have to find ways to please the Chinese audience,” he said, adding, “Now Hollywood tells less of a good story. To depend just on the scene and [special] effects will not work forever.”

Also Read: Lawmaker Wants DOJ to Probe Dalian Wanda's Hollywood Acquisitions

As the group of Chinese VIPs were being given a private tour of the unfinished museum, Hollywood’s moguls gathered on the plaza for a few drinks before the Wanda-hosted dinner – Warner’s Kevin Tsujihara, former Fox chief Jim Gianopulos, UTA partner Jim Berkus, Sony’s Andrew Gumpert, MGM’s Gary Barber to name a few.

None would be so foolish as to ignore the arrival of a foreign potentate. The moment feels like a new turning point in the history of Hollywood. When a Chinese behemoth lands on your shores and lays claim to future partnership, whether you want it or not, even in clubby Hollywood the natives learn to play nice.

Hollywood's 22 Biggest Box Office Champs in China (Photos)

Chinese moviegoers love to spend their hard-earned yuan on Hollywood blockbusters like "Captain America: Civil War," "Avatar" and "Star Wars: The Force Awakens." Comedies and dramas? Not so much. Read on to see which American hits have raked in the most money (according to BoxOfficeMojo) in that nation across the Pacific.
Disney/Marvel/Lucasfilm/Fox
"Furious 7" (2015)

$390.9 million

The Vin Diesel and Dwayne Johnson revved-up action flick is easily the highest-grossing Hollywood movie ever in China. The late Paul Walker remains among China's most beloved American actors.
Universal
"Transformers: Age of Extinction" (2014)

$320 million

Mark Wahlberg starred in the sci-fi movie based on the foldable toys, which was co-produced by two Chinese firms and was the first Hollywood movie to make more than $300 million in the Middle Kingdom.
Paramount
"Avengers: Age of Ultron" (2015)

$240.1 million

The superhero mashup is China's highest-grossing Marvel Cinematic Universe film, a franchise that's been embraced by the country's young-leaning moviegoers.
Marvel
"Zootopia" (2016)

$235.6 million

The buddy-cop comedy is the highest-grossing imported animated film in the history of the Chinese box office, and it played especially well in China's second- and third-tier cities.
Disney
"Jurassic World" (2015)

$228.7 million

Like "Furious 7," the dinosaur sci-fi adventure was produced by Legendary Entertainment, which was acquired by China's Dalian Wanda Group in January.
Universal
"Warcraft" (2016)

$220.8 million

Another Legendary film, this one inspired by a video game series, flopped in the U.S. but dominated the Chinese market, which is home to about half of the video game's players worldwide.
Universal
"Avatar" (2009)

$204.1 million

The worldwide smash hit also captivated Chinese audiences, even back in 2009, when the country's box office was a fraction of the size that it is today.
Fox
"Captain America: Civil War" (2016)

$190.4 million

The latest film in the Marvel Cinematic Universe -- with an ensemble cast that includes Robert Downey Jr., Chris Evans, Scarlett Johansson and Don Cheadle -- continued the iconic comic book company's momentum in China.
Marvel
"Transformers: Dark of the Moon" (2011)

$165.1 million

The prequel to this film, 2009's "Transformers: Revenge of the Fallen," made $65.8 million in China, setting the stage for "Dark of the Moon" to be the country's highest-grossing Hollywood film since "Avatar" at the time.
Paramount
"Kung Fu Panda 3" (2016)

$154.3 million

The Mandarin-language version of the movie starring Jack Black as a friendly fighting bear had the characters reanimated so their mouths moved naturally with the translated words.
DreamWorks
"The Jungle Book" (2016)

$150.1 million

The live-action/animation hybrid was a hit in several international markets, especially India, and it also played well throughout China.
Disney
"Mission: Impossible - Rogue Nation" (2015)

$135.7 million

China's Alibaba Pictures invested in "Rogue Nation," and star Tom Cruise visited several Chinese cities to promote the film, helping it open strong and stick around in theaters even though its China debut came more than a month after its U.S. premiere.
Paramount
"Star Wars: The Force Awakens" (2016)

$124.2 million

Despite China being one of the few markets that didn't catch "Star Wars" fever -- the movie put some people there to sleep -- Disney's promotional efforts helped it clear $100 million.
Lucasfilm
"Interstellar" (2014)

$122 million

The epic space adventure starring Matthew McConaughey, Anne Hathaway and Jessica Chastain connected with Chinese audiences, even though it wasn't in the 3D format that crowds there have grown used to.

Paramount
"The Hobbit: The Battle of the Five Armies" (2014)

$121.7 million

The third and final installment in Peter Jackson's "Hobbit" series was another movie that succeeded even though it was released in China well after its U.S. premiere.
Warner Bros.
"Iron Man 3" (2013)

$121.2 million

All three movies in the Robert Downey Jr. franchise have played in China, helping build brand awareness beyond just the bankable Marvel name.
Marvel
"X-Men: Apocalypse" (2016)

$12o.8 million

Disney bought Marvel Entertainment in 2009, but Fox acquired the film rights to Marvel's "X-Men" franchise before then. It doesn't seem to matter much in China, where anything Marvel often turns into a big hit.
Fox
"Captain America: The Winter Soldier" (2014)

$115.6 million

The predecessor to this year's "Civil War," "Winter Soldier" was a hit despite its fairly political content, which is usually a negative in Chinese theaters.
Marvel
"Terminator Genisys" (2015)

$113.2 million

The fifth "Terminator" film was the franchise's lowest-grossing since the 1984 original, but it was the first in the series to get a Chinese theatrical release.
Paramount
"Pacific Rim" (2013)

$111.9 million

The futuristic sci-fi adventure, in which humans battle sea monsters, is yet another fantasy action movie that Chinese audiences loved.
Warner Bros.
"Ant-Man" (2015)

$105.4 million

Yet another Marvel Cinematic Universe movie, "Ant-Man" made just $180.2 million at the domestic box office but was a much bigger hit in China.
Marvel
"San Andreas" (2015)

$103.2 million

China knows Dwayne Johnson from the "Fast and Furious" franchise, and the earthquake disaster film he headlined last year reverberated at the Chinese box office.
Warner Bros.

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Chinese moviegoers can’t get enough of America’s big-budget action flicks

Chinese moviegoers love to spend their hard-earned yuan on Hollywood blockbusters like "Captain America: Civil War," "Avatar" and "Star Wars: The Force Awakens." Comedies and dramas? Not so much. Read on to see which American hits have raked in the most money (according to BoxOfficeMojo) in that nation across the Pacific.

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