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China Escalates Hollywood Partnerships, Aiming to Compete One Day China Escalates Hollywood Partnerships, Aiming to Compete One Day
(about 11 hours later)
SHANGHAI — Tucked away in a quiet design studio in this fast-growing city, a team of young animators, illustrators and computer programmers is bringing an ancient Chinese village to digital life. SHANGHAI — Tucked away in a quiet design studio in this fast-growing city, a team of young animators, illustrators and computer programmers is bringing an ancient Chinese village to digital life.
Using three-dimensional texture painting software, the team — mostly graduates of China’s leading arts schools — is adding intricate details to temples, palaces and pagodas. Team members are also helping animate the movements of the digital characters, including two pandas named Po and Mei Mei.Using three-dimensional texture painting software, the team — mostly graduates of China’s leading arts schools — is adding intricate details to temples, palaces and pagodas. Team members are also helping animate the movements of the digital characters, including two pandas named Po and Mei Mei.
“This is what I really love to do,” says Fang Zheng, a 32-year-old animator who studied environmental arts in college. “I’ve always been interested in characters and cartoons and things like that.”“This is what I really love to do,” says Fang Zheng, a 32-year-old animator who studied environmental arts in college. “I’ve always been interested in characters and cartoons and things like that.”
The project, part of the next installment of the blockbuster Hollywood film franchise “Kung Fu Panda,” represents a shift in China’s moviemaking ambitions.The project, part of the next installment of the blockbuster Hollywood film franchise “Kung Fu Panda,” represents a shift in China’s moviemaking ambitions.
No longer content simply to build movie sets and provide extras in Hollywood films, Chinese studios are moving up the value chain, helping to develop, design and produce world-class films and animated features. They want a bigger role in the creative process, one that will allow them to reap more rewards, financially and artistically.No longer content simply to build movie sets and provide extras in Hollywood films, Chinese studios are moving up the value chain, helping to develop, design and produce world-class films and animated features. They want a bigger role in the creative process, one that will allow them to reap more rewards, financially and artistically.
“Kung Fu Panda 3” is the first collaboration between Hollywood’s DreamWorks Animation and its Chinese partner, Oriental DreamWorks, which is partly owned by a government investment fund and a private equity firm, China Media Capital. DreamWorks Animation has taken the lead in the creative and design work for the animated feature, which is scheduled for release in early 2016. Oriental DreamWorks contributes by adding Chinese elements, creating storyboards and building parts of the 3-D digital sets.“Kung Fu Panda 3” is the first collaboration between Hollywood’s DreamWorks Animation and its Chinese partner, Oriental DreamWorks, which is partly owned by a government investment fund and a private equity firm, China Media Capital. DreamWorks Animation has taken the lead in the creative and design work for the animated feature, which is scheduled for release in early 2016. Oriental DreamWorks contributes by adding Chinese elements, creating storyboards and building parts of the 3-D digital sets.
“We’re trying to develop Chinese creative talents,” says James Fong, the chief executive of Oriental DreamWorks.“We’re trying to develop Chinese creative talents,” says James Fong, the chief executive of Oriental DreamWorks.
It is part of a broader push by China Media Capital into the entertainment business. Over the last few years, the investment firm has made deals with Warner Bros. and the IMAX Corporation of Canada. It also helped develop a Chinese version of the hit TV show “The Voice.”It is part of a broader push by China Media Capital into the entertainment business. Over the last few years, the investment firm has made deals with Warner Bros. and the IMAX Corporation of Canada. It also helped develop a Chinese version of the hit TV show “The Voice.”
For American companies, such collaborations offer access to new talent and the chance to understand better a culture that will increasingly be portrayed in its films. And coproduction deals provide greater access to China’s tightly regulated market, which in a few years is expected to surpass the United States as the world’s biggest film market.For American companies, such collaborations offer access to new talent and the chance to understand better a culture that will increasingly be portrayed in its films. And coproduction deals provide greater access to China’s tightly regulated market, which in a few years is expected to surpass the United States as the world’s biggest film market.
With China adding an average of 15 cinema screens every day, the country’s box office brought in $4.8 billion last year, tripling in size since 2010, according to the Motion Picture Association of America. And Chinese piracy is no longer such a significant threat to American studios; for example, “Transformers: The Age of Extinction” made more money in China than in the United States.With China adding an average of 15 cinema screens every day, the country’s box office brought in $4.8 billion last year, tripling in size since 2010, according to the Motion Picture Association of America. And Chinese piracy is no longer such a significant threat to American studios; for example, “Transformers: The Age of Extinction” made more money in China than in the United States.
The rapidly growing market is reshaping the way Hollywood deals with China, from the scripts it accepts to the marketing strategies it adopts. Some of America’s biggest television and movie production houses, including HBO and Warner Bros., are already pushing into China with a raft of joint ventures, partnerships and cofinancing projects.The rapidly growing market is reshaping the way Hollywood deals with China, from the scripts it accepts to the marketing strategies it adopts. Some of America’s biggest television and movie production houses, including HBO and Warner Bros., are already pushing into China with a raft of joint ventures, partnerships and cofinancing projects.
Lionsgate, the American studio that produced “The Hunger Games,” has licensing and financing deals with Alibaba, the Chinese e-commerce giant, and Hunan TV, a Chinese state-owned broadcaster. A unit of the Hollywood studio Legendary Pictures is co-producing an action film here with the award-winning Chinese director Zhang Yimou. And last year, when the former Warner Bros. executive Jeff Robinov set up a new Hollywood studio, he received a $200 million investment from the Fosun Group of China.Lionsgate, the American studio that produced “The Hunger Games,” has licensing and financing deals with Alibaba, the Chinese e-commerce giant, and Hunan TV, a Chinese state-owned broadcaster. A unit of the Hollywood studio Legendary Pictures is co-producing an action film here with the award-winning Chinese director Zhang Yimou. And last year, when the former Warner Bros. executive Jeff Robinov set up a new Hollywood studio, he received a $200 million investment from the Fosun Group of China.
“The center of gravity is shifting so rapidly from Hollywood to China,” says Rob Cain, a consultant who runs Chinafilmbiz.com. “And it’s not just that the audience is going to come from China; so is the capital.”“The center of gravity is shifting so rapidly from Hollywood to China,” says Rob Cain, a consultant who runs Chinafilmbiz.com. “And it’s not just that the audience is going to come from China; so is the capital.”
The Chinese government is supporting the deals, seeing them as part of a broader “soft power” push aimed at enhancing the country’s image and the way its people and culture are depicted on the big screen, at home and abroad. As global filmmakers look to gain entry to the market, they must now consider the tastes and preferences of a Chinese audience, not to mention the wishes of the ruling Communist Party.The Chinese government is supporting the deals, seeing them as part of a broader “soft power” push aimed at enhancing the country’s image and the way its people and culture are depicted on the big screen, at home and abroad. As global filmmakers look to gain entry to the market, they must now consider the tastes and preferences of a Chinese audience, not to mention the wishes of the ruling Communist Party.
“Because of the importance of the Chinese market to Hollywood, no one wants to make movies that offend China,” says T.J. Green, a former Warner Bros. executive who now runs Apex Entertainment, which builds cinemas in China. “Some may see that as self-censorship.”“Because of the importance of the Chinese market to Hollywood, no one wants to make movies that offend China,” says T.J. Green, a former Warner Bros. executive who now runs Apex Entertainment, which builds cinemas in China. “Some may see that as self-censorship.”
That is the price of market entry. A few years ago, the Chinese authorities whetted Hollywood’s appetite by raising the quota on foreign film imports, allowing Hollywood to receive a bigger share of the box-office profits and approving more coproductions with local partners.That is the price of market entry. A few years ago, the Chinese authorities whetted Hollywood’s appetite by raising the quota on foreign film imports, allowing Hollywood to receive a bigger share of the box-office profits and approving more coproductions with local partners.
But analysts say greater access to China doesn’t mean unfettered access. Quentin Tarantino’s “Django Unchained,” for instance, was heavily censored in China. And Hollywood studios complain that the release dates of some Western films are often shifted to bolster local movies.But analysts say greater access to China doesn’t mean unfettered access. Quentin Tarantino’s “Django Unchained,” for instance, was heavily censored in China. And Hollywood studios complain that the release dates of some Western films are often shifted to bolster local movies.
The market, in other words, remains tightly regulated. Authorities have also made clear that they want China to develop its own powerhouse studios, perhaps even its own version of Hollywood, that could eventually compete with Tinseltown.The market, in other words, remains tightly regulated. Authorities have also made clear that they want China to develop its own powerhouse studios, perhaps even its own version of Hollywood, that could eventually compete with Tinseltown.
Major Chinese studios are already taking shape. Alibaba has a studio called Alibaba Pictures. Bona Film and Huayi Brothers are now power players. And then there is the China Film Group, the state-run giant that has its own production bases and long experience working with Hollywood studios.Major Chinese studios are already taking shape. Alibaba has a studio called Alibaba Pictures. Bona Film and Huayi Brothers are now power players. And then there is the China Film Group, the state-run giant that has its own production bases and long experience working with Hollywood studios.
“We want to learn how to make movies that appeal to a global audience,” says Ren Zhonglun, president of the state-run Shanghai Film Group, which is also negotiating to form alliances in Hollywood. “Eventually, we need to go global.”“We want to learn how to make movies that appeal to a global audience,” says Ren Zhonglun, president of the state-run Shanghai Film Group, which is also negotiating to form alliances in Hollywood. “Eventually, we need to go global.”
One of the most ambitious efforts is being financed by the private equity firm China Media Capital, which has become one of Hollywood’s preferred partners in China.One of the most ambitious efforts is being financed by the private equity firm China Media Capital, which has become one of Hollywood’s preferred partners in China.
Last year, China Media Capital announced plans to create a “global content investment fund” with Warner Bros. and the global advertising giant WPP, among others. The firm has bought a stake in the Chinese operation of IMAX. With government backing, China Media brought in new partners to develop a $3.1 billion “Dream Center,” a cultural and entertainment district in Shanghai with theaters, performance halls, restaurants and shops.Last year, China Media Capital announced plans to create a “global content investment fund” with Warner Bros. and the global advertising giant WPP, among others. The firm has bought a stake in the Chinese operation of IMAX. With government backing, China Media brought in new partners to develop a $3.1 billion “Dream Center,” a cultural and entertainment district in Shanghai with theaters, performance halls, restaurants and shops.
The China Media Capital executive behind many of these deals is Li Ruigang, a former government official and Shanghai media executive. It was Mr. Li, 45, who helped set up Oriental DreamWorks, the Shanghai joint venture working on “Kung Fu Panda 3.” Alongside projects with DreamWorks Animation, the studio is also working on its own portfolio of television programs, films and animated features.The China Media Capital executive behind many of these deals is Li Ruigang, a former government official and Shanghai media executive. It was Mr. Li, 45, who helped set up Oriental DreamWorks, the Shanghai joint venture working on “Kung Fu Panda 3.” Alongside projects with DreamWorks Animation, the studio is also working on its own portfolio of television programs, films and animated features.
“We’re talking to all the major Hollywood studios,” Mr. Li said during an interview at the headquarters of China Media Capital in Shanghai. “But we’re also developing our own original Chinese stories. We want it to be high-quality animation that can be distributed globally.”“We’re talking to all the major Hollywood studios,” Mr. Li said during an interview at the headquarters of China Media Capital in Shanghai. “But we’re also developing our own original Chinese stories. We want it to be high-quality animation that can be distributed globally.”
The Oriental DreamWorks studio, now a temporary space in a glass office tower, looks like a creative playground, decorated with colorful toys and Lego blocks. Most of the 260 employees are working on elements of “Kung Fu Panda 3.” Overnight, they ship large computer files to California, where the work can then be integrated into the movie.The Oriental DreamWorks studio, now a temporary space in a glass office tower, looks like a creative playground, decorated with colorful toys and Lego blocks. Most of the 260 employees are working on elements of “Kung Fu Panda 3.” Overnight, they ship large computer files to California, where the work can then be integrated into the movie.
They are determined to forgo dubbing into Chinese, so the partner studios are effectively producing two films. The characters’ mouths and jaws are being animated for two languages, English for most audiences and Mandarin for cinemas in China.They are determined to forgo dubbing into Chinese, so the partner studios are effectively producing two films. The characters’ mouths and jaws are being animated for two languages, English for most audiences and Mandarin for cinemas in China.
“We want to leverage the best of the Hollywood creativity with the best Chinese characteristics,” said Mr. Fong of Oriental DreamWorks. “We make it faster, do it cheaper, and in the end do something really innovative.”“We want to leverage the best of the Hollywood creativity with the best Chinese characteristics,” said Mr. Fong of Oriental DreamWorks. “We make it faster, do it cheaper, and in the end do something really innovative.”