Time Warner Wants to Take Over China
In recent years China has become one of the most important markets for entertainment companies. Time Warner has been looking to find new markets and create new platforms for its content, which includes Warner Bros. film studio and cable channels including HBO, TBS, and TNT.
“This partnership with CMC and Ruigang Li will give us a unique window into one of the world’s largest and fastest growing media and entertainment markets,” said Time Warner Chief Executive Officer 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.”
Ruigang Li, chairman of CMC, said China is “undergoing a profound change on various fronts including technology, creativity and commercialization.” Li went on to say, “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 goal of the partnership is “to capitalize on China’s rapidly expanding media sector as digital devices proliferate and China’s demand for high-quality content across multiple platforms rises,” the companies said, citing forecasts that Chinese box office revenue is projected to reach $4.4 billion this year, and online video revenue is projected to reach $2 billion.
The partnership was announced at the 2013 Fortune Global Forum held in the western Chinese city of Chengdu.
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