More Investments in China Helps Hollywood Companies to Continue its Globalization of its Products
The recent investments and acquisition in China is helping Hollywood to continue in globalizing its products and connect with the Chinese market. According for executive US movie producers said that in order for the business to work they need to work on a global stage. Aslo a statement from Martin Willhite, the chief operating officer for Legendary Entertainment that from the earlier days, Legendary Entertainment is planning to reach out and deliver its products to the largest audience possible.
The company was creating a global product instead of a US product, and according to Willhite Legendary is deciding to expand their global reach by creating an office in China to understand how the industry is working in the country. Just earlier this year Legendary was bought by Dalian Wanda Group for $3.5 billion. As the company grew, they also understand globalization has more success, saying that the company has gone through different kinds of capital partners ranging from private equity firms to institutional capital and financial investors.
Vice president and CEO for Wanda Cultural Industry Group Jack Gao said that the movie Warcraft which was produced by Legendary got a record breaking opening in Chine and made $200 million with 90 percent of ticket sales were purchased online. He said that China was a more profitable market than in the US setting an example for the transformers movie which grossed $400 million in the US with $80 million in marketing, but earned $480 million and spend $20 million in marketing in China. Gao said that reason for such high sales is that online tools are more developed in China having a much greater reach to the audience and is being used by more consumers.
Although Wanda is at the early stage in the industry and in the process of globalization, the company is aiming to be a strategic investor by adding value to Hollywood and connect Hollywood movie makers to the Chinese market.