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Wanda’s leadership has suggested a desire<br />
to acquire cinema assets in different territories<br />
around the world. What was the fi rst place<br />
outside China where Wanda sought to acquire<br />
cinemas? That would be the good ole U.S. of<br />
A. Subsequently, Wanda indicated an interest<br />
in Europe, and I have heard several reports<br />
of conversations to acquire large exhibition<br />
companies on that continent too.<br />
Wanda’s leadership has expressed interest<br />
in the strength of the American exhibition<br />
industry and the desire to learn more from<br />
cinema operations in the world’s most developed<br />
market. That speaks volumes about the<br />
strength of our market.<br />
If the Chinese government were somehow<br />
trying to make a soft power play into the<br />
United States, how would the acquisition of a<br />
cinema company even make that goal possible?<br />
Would Wanda and AMC risk commercial<br />
disaster by showing lots of Chinese movies?<br />
Would the Chinese censor the themes that<br />
could be included in the AMC movie slate?<br />
These are ridiculous concepts that fly<br />
in the face of the capitalist underpinnings<br />
of this large investment. Chairman Wang<br />
has indicated his desire to keep the existing<br />
executive team in place at AMC, to learn from<br />
his investment as the experiences here might<br />
help him overseas, and to make a healthy<br />
return. And of course the growing strength<br />
of Wanda’s combined box office returns and<br />
screen count may give the company added<br />
leverage with suppliers.<br />
GROWING TIES BETWEEN CHINA AND<br />
THE UNITED STATES MAY OPEN UP<br />
THE MARKET IN CHINA<br />
The potential benefits of the Wanda-AMC<br />
deal are not limited to the American market.<br />
China’s current movie and cinema market<br />
lacks freedom. The government strictly limits<br />
the number of foreign movies that may be imported<br />
for exhibition each year. A government<br />
censorship authority decides which movies<br />
contain appropriate themes, and Chinese law<br />
limits investment in cinema operations by foreign<br />
companies. The Wanda-AMC deal, taken<br />
in combination with other strengthening ties<br />
between the two countries, may help loosen<br />
these restrictions.<br />
There has been some progress lately in the<br />
market. In February of this year, U.S. and<br />
Chinese negotiators announced an agreement<br />
to increase the number of U.S. fi lms allowed<br />
to be shown in Chinese movie theaters and<br />
provide a more equitable share of revenue for<br />
U.S. fi lm companies after a strong push by<br />
the Motion Picture Association of America for<br />
such reforms.<br />
Subsequent to the agreement, fi lm industry<br />
ties between the two countries have grown in a<br />
number of ways. Disney, DreamWorks Animation<br />
and News Corp. (owners of Twentieth<br />
Century Fox) formed coproduction partnerships<br />
that will include some of their biggest<br />
movies. DreamWorks, in particular, is going<br />
into China in a big way by forming Oriental<br />
DreamWorks, a Shanghai-based joint venture<br />
to develop entertainment projects including<br />
theme parks and live productions.<br />
Coupled with these advances in China, it is<br />
possible and perhaps even likely that Wanda’s<br />
experience in the U.S. cinema market may<br />
translate into greater openness back home.<br />
The Chinese government seeks to develop<br />
the domestic exhibition infrastructure in the<br />
country to serve rapidly rising demand. What<br />
better way to expand the exhibition market<br />
than to allow more entries by foreign interests?<br />
Wanda’s experience in the United States will<br />
surely inform its fellow countrymen that cinema<br />
operations in a freer market can produce<br />
growth and returns. And a simple sense of<br />
fairness suggests that if China’s biggest cinema<br />
player can come into our country, and perhaps<br />
Europe, then non-Chinese exhibition interests<br />
should have greater access to the growing<br />
market in China.<br />
We live in a global marketplace. Movies<br />
provide an international language. The times<br />
are changing. I welcome the confidence placed<br />
in American exhibition by one of the most<br />
significant business conglomerates in China,<br />
and I look forward to greater foreign development<br />
in the Chinese market too.<br />
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