Last week, Paramount Pictures deepened ties with two of its Chinese partners, as the studio signed a strategic agreement that will have China’s Huahua Media and Shanghai Film Group co-finance the studio’s full slate of films over the next three years. But maybe as important as the funding — which could add up to as much as $1 billion — is Paramount’s ability to piggyback on their marketing might, which could help the studio continue to cash in inside the Middle Kingdom.
Huahua has served as an investor and marketing partner in several previous Paramount films, including “Jack Reacher: Never Go Back,” “Star Trek Beyond,” “Mission Impossible: Rogue Nation” and “Transformers: Age of Extinction,” which became the highest-grossing movie of all time in China with $320 million at the box office when it was released in 2014. Shanghai Film Group was also an investor in “Jack Reacher.”
Huahua CEO Kefei Wang, who has distributed more than 40 films in his decade in the film industry, said one key to the success of movies like “Transformers” and “Star Trek Beyond” in the Chinese market was enlisting pop stars to come up with custom songs, a tactic he said Huahua came up with.
“[Huahua] actually introduced the concept of having popular pop singers perform theme songs for all these incoming imported films,” Wang told TheWrap through a translator. “Becuse a lot of people catch on to our marketing ploys — because they see it has some level of success — we get copied quite frequently. Huahua has to always push the envelope.”
For “Star Trek Beyond,” which made a healthy $65 million in China, Huahua developed an integration with popular Chinese variety show “Happy Camp.”
Wang said the previous one-off deals were part of “building the steps of this larger cooperation between [Huahua], Shanghai Film and Paramount,” and that the larger agreement “made a lot of sense to have the synergy between the three companies.” As part of the deal, Huahua and Shanghai Film Group will jointly staff an office on the Paramount lot. Wang couldn’t share what exactly will be happening out of that office or who’s going to be working there, but said it’s all part of “cultural change as our China film industry and Hollywood gets closer.”
“This deal made sense for Huahua,” he said. “It was always our goal to partake in the world film market.”
While certain types of Hollywood films have become reliable performers at the Chinese box office — the Marvel Cinematic Universe and “Fast and Furious” franchise are especially popular there — Chinese films haven’t really made much of an impact in the U.S. even as the country’s box office continues to grow exponentially. Wang believes that will come in time.
“We are still in the beginning stages of China-U.S. film relations,” he said. “There still needs to be more time to have an exchange of technologies and storytelling methods so we can really bring Chinese-language films to the rest of the world.”
Wang said he’s excited by Paramount’s entire slate, but there’s one movie he’s clearly eyeing that should be a monster hit in China.
“One particular film is of course ‘Transformers: The Last Knight’ with ‘Transformers: Age of Extinction’ breaking the record,” he said. “That’s definitely the tentpole that we’re most looking forward to. We have many marketing ploys [to roll out].”
12 Chinese-Owned Media Companies, From Dick Clark Productions to AMC (Photos)
A firehose of Chinese investment has been flowing into Hollywood for the last few years, as Middle Kingdom firms have scooped up production companies and theater chains by the billion. And while D.C. has finally taken notice -- and is asking the government to take a closer look at foreign ownership of American content companies -- Chinese firms have already accumulated a substantial portfolio of media and entertainment-related companies often at healthy premiums. And Hollywood isn’t ready to look that gift horse in the mouth.
AMC/Carmike/Legendary/Getty Images
AMC THEATRES Owner: Dalian Wanda Group
Wanda, a real estate and entertainment conglomerate owned by China’s richest man, Wang Jianlin, made its first Hollywood splash in 2012 when the company paid $2.6 billion for AMC Entertainment, the parent of AMC Theatres, the second-largest theater chain in the U.S.
AMC Theatres
Carmike Cinemas Owner: Dalian Wanda Group
Wanda-owned AMC paid $1.2 billion to acquire Carmike Cinemas in a deal that just closed in November. The combined chain will be America’s largest theatrical exhibitor, passing former No. 1 Regal Entertainment.
Mike Kalasnik
Legendary Entertainment Owner: Dalian Wanda Group
Wanda paid $3.5 billion for the “Jurassic World” production company in January, even though Legendary lost $500 million last year, according to a Chinese regulatory filing. However, plenty of Legendary’s high-octane action and fantasy flicks have been bigger hits in China than the U.S., such as “Warcraft.”
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Dick Clark Productions Owner: Dalian Wanda Group
Wanda spent $1 billion to acquire the producer of the Golden Globes, American Music Awards and “New Year’s Rockin’ Eve.” The deal marks Wanda’s first foray into television after spending billions on the big screen.
Dick Clark Productions
Voltage Pictures Owner: Anhui Xinke New Materials
Anhui Xinke, a copper processing company, bought an 80 percent stake in Voltage parent Midnight Entertainment for $351 million. Voltage is the production company behind Oscar-winning films including “The Hurt Locker” and “Dallas Buyers Club.”
Voltage
STX Entertainment Owner: Hony Capital, Tencent
Independent distributor STX was founded with investments from private equity giant TPG and Chinese firm Hony Capital. The company also has a co-financing deal with China’s Huayi Bros. Media, and this year secured a strategic investment from Tencent to expand into digital content, music and virtual reality.
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World Triathlon Corporation Owner: Dalian Wanda Group
Wanda paid $650 million last year for the company that organizes the Ironman Triathlon races, folding it into its new Wanda Sports division.
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IM Global Owner: Tang Media Partners
Tang Media Partners, which has offices in Shanghai and L.A., acquired a controlling stake in Stuart Ford’s film finance firm from Indian conglomerate Reliance in June. IM Global has financed or produced more than 30 Hollywood films, including Mel Gibson’s “Hacksaw Ridge.”
IM Global
Studio8 Owner: Fosun Group
Chinese conglomerate Fosun is the largest shareholder in former Warner Bros. chief Jeff Robinov’s production company, having invested $200 million in Studio8.
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Dichotomy Creative Group Owner: LeEco
Consumer tech company LeEco’s subsidiary Le Vision Pictures opened an L.A. office this year and hired former Paramount Pictures President Adam Goodman to run it and oversee a slate of English-language films. As part of the deal, LeEco acquired Goodman’s production company, Dichotomy.
Adam Goodman
Cirque du Soleil Owner: Fosun Group
It’s a Canadian circus, not a movie or TV studio, but Cirque du Soleil operates six Vegas shows, several tours and earned $845 million in revenue in 2014. Last year, TPG and Fosun acquired a majority stake in Cirque du Soleil for $1.5 billion.
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Riot Games Owner: Tencent
Tencent acquired a 93 percent stake in the video game publisher for $400 million in 2011 and acquired the remainder last December. Riot’s “League of Legends” is the most played PC game in the world.
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Firms from China have been scooping up production companies and theater chains by the billion in recent years
A firehose of Chinese investment has been flowing into Hollywood for the last few years, as Middle Kingdom firms have scooped up production companies and theater chains by the billion. And while D.C. has finally taken notice -- and is asking the government to take a closer look at foreign ownership of American content companies -- Chinese firms have already accumulated a substantial portfolio of media and entertainment-related companies often at healthy premiums. And Hollywood isn’t ready to look that gift horse in the mouth.