Hollywood Looks to China for Capital
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Hollywood Welcomes Chinese Investors
Frenzied consumers aren’t the only ones looking for a good deal this December, as Chinese conglomerates turn to Hollywood for the best holiday shopping. With a red hot market on the line, Tinseltown is more than happy to receive capital from Chinese investors.
credit: Diane Panosian
In a recent article featured on China Daily titled, Hollywood Could be Saying Hooray For More Chinese Capital producer Jack Binder, president of Film Budget Inc., had this to say about Chinese investments in Hollywood:
“Amid the huge risks and rising costs of production, distribution and marketing, Chinese capital ‘is providing and will continue to provide much needed operating financing to the US film business’, said Jack Binder, founder of Film Budget Inc, a Los Angeles-based consultancy that helps moviemakers plan their budgets.”
Whether you’re making a Hollywood blockbuster with a movie budget in the hundreds of millions or a shoestring indie flick, the American box office seems to have reached its peak. With that in mind, Chinese box offices have been growing exponentially. To illustrate, the Chinese movie industry is “expected to reach $6 billion in 2014, according to EntGroup, a Beijing-based entertainment consultancy.”
A Winning Formula for Transformers
It seems Paramount’s “Transformers” understands the potential of China’s mega market, going as far as to have the premiere there. So, why does the franchise love China so much? Because China loves “Transformers”. According to Pras Subramanian in an article on Yahoo.com titled Why China, not the U.S., is the audience Hollywood Wants, “Transformers has pulled in over $300 million from China alone, whereas box office receipts in the U.S. are around $241 million for a movie that just crossed the $1 billion mark in worldwide ticket sales.”
Considering “Transformers 4” was made with a movie budget of $285 million, China’s sales alone make the film profitable.
Largest Chinese-Language Movie Ever To Be Filmed in L.A.
As Hollywood’s grasp on the American film industry starts to loosen, foreign productions are more than welcome in Southern California. That’s why many see the filming of the biggest Chinese-Language movie on Hollywood soil, titled “Hollywood Adventures”, as a step in the right direction. Made with a movie budget of$30 million, “Hollywood Adventures” brings some much needed capital to the area. In a recent publication on the L.A. Times website titled Chinese movie ‘Hollywood Adventures’ is being filmed in L.A., Lindsay Conner of Phelps & Phillips believes the movie:
“reflects a growing trend toward Hollywood and China continuing to find ways to work together, whether it’s exploring themes that are relevant to both sides, or using locations or crews that are valuable to both.”
via : Perfect Storm Entertainment
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