It is no secret that the film business is becoming increasingly complex and competitive. As movie budgets grow and the stakes become higher, more players enter and shape the marketplace.
Dalian Wanda Group (“Wanda”) is an example of a company that is changing the filmmaking landscape through its financial creativity. Wanda’s founder recently announced its plan for “a $150 million annual incentive program — jointly funded by Wanda and the Qingdao municipal government — that will subsidize up to 40% of a production’s costs.” Furthermore, “the Qingdao incentive, which will cover up to $18 million per production, will be administered by a 10-member panel — five from Wanda, and five from the Qingdao government. Applicants will be considered on a first-come, first-served basis,”
The Qingdao incentive is interesting because it offers a hybrid alternative to traditional funding programs, drawing from private and government funds alike, as opposed to state-only sources (e.g., those commonly found in the United States). Furthermore, Wanda’s program is interesting because it serves as a reminder of the financing alternatives potentially available to filmmakers.
To read more about filmmaking in China visit:
http://variety.com/2016/biz/news/chinese-company-wanda-1201900301/
Ross A. Carbone, Esq. is an associate in the Corporate practice group, and Media, Sports and Entertainment sector, of the law firm of DLA Piper LLP (US).