Pinewood Studios expand into China

Pinewood Studios

Pinewood Studios have signed a joint venture with Seven Stars Media limited to expand their operations into China 

 From the press release:

Pinewood Shepperton plc ("the Company" or "Pinewood"), a leading provider of services to the global film and television industry, today announces that the Group has entered into a 50:50 Joint Venture Agreement with Seven Stars Media Limited ("Seven Stars"), part of one of China's leading private media groups which provides content creation and distribution, media services and events.

The joint venture, to be called "Song Lin", initially will assess a number of business proposals in the growing entertainment market in China. Under the terms of the joint venture, Pinewood will provide its expertise with limited capital investment. The proposals include:

-providing co-production opportunities for film and television producers;
-the creation of film and television diploma courses to be delivered by UK educational institutions in Beijing, Tianjin and four other cities
-developing production financing and related services for Chinese film and television productions;
-a series of film themed entertainment venues in Shanghai and regionally; and
-creating film themed projects in Beijing, Shanghai and Wuhan.

Seven Stars is one of the largest and fastest growing media conglomerates in China, with operating subsidiaries and joint ventures in Hong Kong, Europe, UK and the United States, and its founder and Chairman Bruno Wu has been a leading figure in the international entertainment industry for over a decade.

Prime Minister David Cameron said:

"It's great to see Pinewood Studios expanding its business with the announcement of its joint venture with Seven Stars Media. The creative industries are a rapidly growing area of China's economy and will increasingly provide huge opportunities for UK companies competing in the global race. Pinewood is leading the way, taking advantage of China's thriving entertainment and media sector and building on Britain and China's growing trade relationship."

Ivan Dunleavy, Pinewood CEO, said:

"The Chinese market for content is the fastest growing in the world and taking Pinewood's experience and skills to that market in partnership with such an established and successful local partner is a truly exciting prospect. The joint venture brings together two companies with significant experience and will provide a conduit for film and television productions to maximise their impact in China. The partnership with Seven Stars, under Bruno Wu's direction, represents a strategic step forward for Pinewood's international development. If successful, the joint venture could provide significant opportunities for UK film and television producers."

Bruno Wu, Seven Stars Chairman and CEO said:

"Together with Pinewood, we have identified a significant number of business opportunities for the short, medium and long term. The joint venture will aim to improve the standard of media production, create co-production opportunities for Chinese producers and export Chinese film and television content overseas. Our local knowledge and scale combined with Pinewood's unique operational skills and international reputation will enable our joint venture to participate in China's content explosion."

The Chinese entertainment and media market is worth $137,458 million and is predicted to grow to $192,516 million by 2016. The Chinese filmed entertainment market is worth $4,478 million and is expected to almost double by 2016 to $7,374 million(1). In 2011 the Chinese Government listed the creative sector as a pillar industry.

(1) PWC Global Entertainment and Media Outlook: 2012-16, 13th Edition, June 2012

Pinewood already has studios in the UK, Germany, Canada, The Dominican Republic and Malaysia. This joint venture will provide opportinities for them to operate in the growing Chinese market.