BEIJING -- China's main state-owned film company, China Film Group, and Hollywood's Crest Digital announced a joint venture Tuesday to deliver home entertainment and technology software content via multiple digital platforms to mainland China consumers.
Announcement comes after the U.S. filed two trade cases against China at the World Trade Organization. There had been speculation that China could take reprisals against U.S. firms.
The two companies will collaborate on digital media ventures in China, including the creation of a new state-of-the-art DVD and CD manufacturing facility, scheduled to open outside Beijing late this year. With an initial land space of more than 800 acres, the complex will be the largest entertainment and studio facility in Asia.
The companies intend to announce additional ventures over the next six to 12 months, including one focused on CD and DVD anticounterfeiting technology.
The areas of focus for the partnership are interesting given that the WTO complaints relate to copyright piracy and restrictions on the sale of American music, videos and movies.
"Among other benefits, the collaboration will provide significant growth opportunities for companies that own or create entertainment content as they will now have greater access to sell their products to the Chinese consumer," Crest said in a statement.
The joint venture provides a secured critical distribution and pre-recorded DVD/CD manufacturing solution in China's highly regulated domestic entertainment and media industry.
The partnership will also focus on developing emerging digital content delivery technologies for its clients, including video-on-demand, IPTV, Internet and mobile.
Eric Loong, Crest Digital's chief operating officer, said China Film Group was a "critical component for Hollywood and foreign content owners seeking distribution of their valuable entertainment optical software and intellectual property in China."
China Film dominates Chinese media, with its interests spanning most of the country's movie productions and a big chunk of TV production too, as well as distribution and exhibition, the import and export of product, digital cinema construction, printing and processing, film equipment manufacturing and CD and DVD manufacturing.
