Shanghai Film & TV Group: Key Player in China's Distribution Venture

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Shanghai Film & TV Group Emerges as Key Player in China's New Distribution Venture

In a significant shift for China's film distribution landscape, the Shanghai Film & TV Group has secured a leading position in a groundbreaking new distribution company set to launch this summer.

Despite previously failing to obtain a license to distribute foreign films independently, Shanghai Film & TV Group has strategically positioned itself as the largest shareholder in this new venture, commanding a 15% stake. The company's head, Zhu Yongde, will serve as chairman of the operation based in Shanghai.

This development represents the culmination of intense competition among regional studios vying for influence in the new distribution entity. China Film, which previously held a monopoly on foreign film distribution in the mainland, will reportedly hold only an 8% stake—significantly less than the 30% it had sought.

Additional stakeholders include several regional film groups: Changchun, Xi'an, E'mei, and Xiaoxiang. The Urban Theater Development Association from Chengdu stands as the only theater chain with representation in the venture.

According to sources at China Film in Beijing, the new company will be formally established in May and commence operations by July 1st. The State Administration of Radio, Film & Television has mandated that the annual quota of 20 revenue-sharing foreign films will be divided equally between China Film and the new distributor.

Shanghai Group demonstrated its distribution capabilities earlier this year with the release of "Jurassic Park III," which earned $1.5 million despite challenges from piracy and competition from "Harry Potter and the Sorcerer's Stone." What initially appeared to be a one-time opportunity for Shanghai Group now reveals itself as part of a larger strategy to establish dominance in the new distribution landscape.

The yet-unnamed company represents a historic end to China Film's long-standing monopoly on foreign film distribution in the world's most populous market.

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