Relativity Media Launches Strategic Partnership in China

Relativity Media is joining with China's Huaxia Film Distribution Co. and SkyLand (Beijing) Film-Television Culture Development to launch a strategic partnership to promote U.S.-Chinese coproductions.our editor recommendsChina Online Video Company Tudou.com Prepares for IPO The three companies, along with SAIF Partners, an Asian private equity firm, and IDG China Media, the China-focused investment arm of Boston's International Data Group, are also creating what is billed as the first China/U.S. distribution company, SkyLand Entertainment. Relativity, SAIF and IDG China plan to develop, produce, acquire and distribute Chinese material with worldwide appeal. Relativity will distribute all of its future films in China, including Immortals, Haywire, Act of Valor, its Untitled Snow White Project, and The Raven, through SkyLand. These films will still be subject to China's annual quota of 20 foreign films distributed on a revenue-sharing basis. Distribution will still technically be through Huaxia, which, along with China Film Group, is one of only two state-run companies authorized to import and distribute foreign films. SkyLand, a fully-funded, vertically-integrated film and multimedia production, distribution and financing company, which was jointly owned and controlled by SAIF Partners and IDG China Media, is now also owned by Relativity. SkyLand is also partnered with a China-based renminbi fund to co-invest in local film and television content and production, with a budget equivalent to $100 million. SkyLand has functioned as SAIF and IDG's entertainment arm, and most-recently co-produced Snow Flower and the Secret Fan, inspired by the novel by Lisa See, directed by Wayne Wang, which was released stateside by Fox Searchlight. "China is the fastest-growing film market in the world, with over 6,000 screens and over $1.5 billion in box office revenue last year, an increase of over 60% last year alone. We're excited to be entering into this booming market with such great partners in SAIF, IDG and our new strategic partnership with Huaxia. Given the substantial platform created by SAIF and IDG in SkyLand, we believe together we can grow a distribution business in China which brings global product to China, and brings Chinese product to the global market," Relativity founder and CEO Ryan Kavanaugh said. Kavanaugh, Huaxia Film's executive chairman Guoqin Gu, SAIF Partners' managing partner Andy Yan and IDG China Media's founding partner Hugo Shong announced the initiatives Monday at a press conference in Beijing. "This partnership will broaden the cooperation platform introducing significant resource for the co-production of future movies while allowing us to build on valuable movie production experiences from overseas. Meanwhile, such partnership will also open the channels for Chinese movies to air globally and offer international audiences a better understanding of Chinese culture," Gu said. Related Topics International Asia Relativity Media