February 17th, 2012
03:35 PM GMT
Share this on:

Hong Kong, China (CNN) – It’s likely that lots of people in Tinseltown are pretty happy - dare I say giddily animated. That probably includes China’s Vice-President Xi Jinping, who’s widely expected to succeed Hu Jintao as president of China in 2013.

That’s because Xi, wrapping up his week-long U.S. trip in Los Angeles, is expected to announce a major $2 billion silver screen deal between two Chinese firms and Dreamworks Animations - the latter famous for its witty, highly-produced and family-friendly cartoon flicks like Kung Fu Panda, Shrek and Madagascar.

In focus is a huge joint venture with the U.S. animation studio involving major Chinese state-owned media companies. One is Shanghai Media Group,China’s second largest broadcaster. The other is China Media Capital, a fund that backs China’s entertainment industry.

The story centers on the construction of a brand-new film studio – not in Hollywood, but in Shanghai. 

The plotline focuses on the maturation of China’s adolescent film, television and live stage industries, with the help of Dreamworks’ expertise.

And the score may sound like the theme from Jaws, when the great white nears to take a chomp out of another hapless victim: Western company wants access to China (duh duh)…China gives permission, allows Western company in and learns as much as it can (duh duh, duh duh)…China then boots Western company out, copies what it has learned and exports similar products (cue bloodcurdling scream).

Foreign film makers may rightly be shouting about how this expected deal may benefit them, given China  allows just twenty foreign films to be shown in the country’s theaters. 

That is not expected to change with Xi’s visit to Hollywood, but it may turn out to be a loophole for Dreamworks at least.

Once it’s set up in China, the movies it helps to produce out of that new Shanghai studio may not be counted as foreign films, meaning Dreamworks could reach more eyeballs through more movies than other Western competitors who don’t have such a deal.

Looking ahead, other foreign movie companies may want to consider something similar for greater access too. 

In 2011, China raked in $2 billion in movie ticket sales to be the world’s number three movie market. Japan barely edged out its neighbor, pulling in $2.3 billion. The U.S. maintained its number one ranking with just more than $10 billion.

But within the next ten years, China is expected to boast the most ticket sales in the world.

And movie companies both inside China and out will not want to miss that multi-billion dollar rush to the box office.

soundoff (10 Responses)
  1. That'snotTrue={

    Hopefully the productions will be better & not just remake of other movies....and have a point in there somewhere? Hollywood need a LIN-gustist who'll make both entertaining & meaningful movies...unlike most of the products now. =.=

    February 17, 2012 at 10:14 pm |
  2. Paul Felix Schott

    Some will sell their soul for money all the money in the world will not buy their way into heaven.
    This year 2012 more than 100 million will suffer from Malnutrition and Dehydration. Many will die!
    Over 45 million Americans are on Government Food Stamps in this country this year 2012. And that
    Number is only going up. Why on Earth would anyone sell out your country men? For those with
    blinders on. There is A World Food Shortage Crisis going on, and it will not get any better
    with time.

    United We Stand In GOD We Trust

    The Lord's Little Helper.
    Paul Felix Schott.

    February 17, 2012 at 11:12 pm |
  3. Marco Hsiao

    Bruce Lee 李小龍 has good innovation on movies of Chinese Kung Fu. Some Hong Kong movies also have inspired the US movies. The US movie "The Departed" copies from Hong Kong movie "Infernal Affairs" 無間道 is a recent example. Ang Lee 李安 is a Taiwanese director, his work, Crouching Tiger, Hidden Dragon, gets 4 Oscars.

    February 18, 2012 at 12:32 pm |
  4. jakson

    Strangest way to the marriage application

    February 19, 2012 at 11:38 am |

    great china

    February 19, 2012 at 9:05 pm |
  6. jim

    What the hell does Ni-Hau mean?

    February 24, 2012 at 1:31 pm |
  7. Charles

    *Jim, it's "Hello" in Chinese

    February 27, 2012 at 9:53 pm |
  8. Adil

    I cnnaot believe that the best Tokyo restaurant in the list only makes it into 20th place, and that it is l'Atelier If you travel to Tokyo, get the Michelin guide, don't trust the Miele

    February 27, 2012 at 10:14 pm |
  9. Ema

    for those that don't know "Ni Hao" is the Chinese almost everything phrase for "hello."

    March 10, 2012 at 4:11 am |
  10. jpg to vector images

    Excuse for that I interfere … here recently. But this theme is very close to me. I can help with the answer. Write in PM.

    P.S. Please review our icons for Windows and windows13icons.

    September 15, 2012 at 7:45 pm |

Post a comment


CNN welcomes a lively and courteous discussion as long as you follow the Rules of Conduct set forth in our Terms of Service. Comments are not pre-screened before they post. You agree that anything you post may be used, along with your name and profile picture, in accordance with our Privacy Policy and the license you have granted pursuant to our Terms of Service.

About Business 360

CNN International's business anchors and correspondents get to grips with the issues affecting world business, and they want your questions and feedback.

Powered by WordPress.com VIP