China Media Capital (CMC), China’s leading investment fund focused on media and entertainment, has formed of a strategic investment partnership. The announcement was made in the city of Chengdu at the 2013 Fortune Global Forum.
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.
“China’s media and entertainment industry is undergoing a profound change on various fronts including technology, creativity and commercialization.” said Ruigang Li, Chairman of CMC. “We are privileged to be at the forefront of these unprecedented opportunities as well as challenges. 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.”
“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 Chairman and CEO 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.”
The Chinese media and entertainment market is among the largest and fastest growing in the world. Box office revenue is projected to reach $4.4 billion in 2013, and with an estimated 45% compound annual growth rate between 2009 and 2013. Animation revenues are projected to reach $7.1 billion in 2013, with a 27% CAGR over the same period, and online video revenues are projected to reach $2 billion in 2013 with a 64% CAGR between 2009 and 2013.
Li founded CMC as China’s first media and entertainment-focused investment fund in 2010. CMC’s investment portfolio has participated in several investments and transactions including DreamWorks Animation’s Chinese JV and CMC’s buy of Star China from News Corp. Li was previously the CEO of Shanghai Media Group, where he was credited with transforming the Shanghai based provincial broadcaster SMG into one of China’s largest media conglomerates.