Looking to capitalise on the growing Chinese media and entertainment industry and the proliferation of digital devices, Time Warner and China Media Capital (CMC), an investment fund focused on media and entertainment, have come together to form a strategic investment partnership. The announcement was made in the western Chinese city of Chengdu.
The alliance pairs the world’s leading video-focused content company, home of such businesses as Warner Bros, HBO, and Turner Broadcasting, with the pre-eminent investment platform in China dedicated to the media and entertainment sector. The goal of the partnership is to capitalise on China’s rapidly expanding media sector as digital devices proliferate and China’s demand for high-quality content across multiple platforms rises.
“This partnership with CMC and Ruigang Li (Chairman of CMC) will give us a unique window into one of the world’s largest and fastest growing media and entertainment markets,” said Time Warner Chairman and CEO Jeff Bewkes.
“Increasing our global presence is one of Time Warner’s strategic priorities and China is one of the most attractive territories in which we operate, but it is complex. This alliance will give all our businesses a savvy and accomplished partner as we strive to bring our leading brands and storytelling to people everywhere, across a wide range of devices,” he added.
“China’s media and entertainment industry is undergoing a profound change on various fronts including technology, creativity and commercialisation.” said Ruigang Li, Chairman of CMC, adding, “We are privileged to be at the forefront of these unprecedented opportunities as well as challenges. We are pleased to forge this partnership with Time Warner, a global power of television, film, and digital content, to jointly explore innovative ways of creating premium content for the new generation of consumers at the age of Internet and mobile, which will further contribute to the dynamic industry development in China.”
The Chinese media and entertainment market is among the largest and fastest growing in the world. Box office revenue is projected to reach $4.4 billion in 2013, and with an estimated 45 per cent compound annual growth rate (CAGR) between 2009 and 2013. Animation revenues are projected to reach $7.1 billion in 2013, with a 27 per cent CAGR over the same period, and online video revenues are projected to reach $2 billion in 2013 with a 64 per cent CAGR between 2009 and 2013.