Emerging Markets New Service Sector

[Aman A.K.A. Ahamburger]

At one point this was just a simple a post. But since the JV was announced there have been a flurry of deals in the entertainment industry in China and there is going to be money for these companies. At this point we can start to talk exclusively about how Western entertainment companies are going to profit off the coming of age of the Chinese middle class.

DreamWorks to open studio in China
www.upi.com/Entertainment_News/Movies/2012/02/18/DreamWorks-to-open-studio-in-China/UPI-92441329594114/

More Hollywood films set for China
www.cnn.com/2012/02/21/showbiz/china-us-film/

Film agreement offers reel opportunities
www.chinadaily.com.cn/bizchina/2012-02/22/content_14666213.htm

China to Get Disney Films Through YOU on Demand
abcnews.go.com/Entertainment/wireStory/china-disney-films-demand-15771693#.T0vA1MX--z4

For indie filmmakers, trade accord with China a 'breakthrough'
articles.latimes.com/2012/feb/20/entertainment/la-et-china-movies-20120220

China opens box office to more U.S. movies
www.reuters.com/article/2012/02/18/usa-china-movies-idUSL2E8DI0JJ20120218

[Aman A.K.A. Ahamburger]

Universal(Comcast/GE) is getting in on the fun!

Universal in Early Talks on China Park, Joint Venture
www.reuters.com/article/2012/02/26/us-universal-china-idUSTRE81P0IG20120226

[Aman A.K.A. Ahamburger]

Some more warming towards the USA culture...

China woos Hollywood studios with film fund
www.google.com/hostednews/ap/article/ALeqM5hB3JqA_AVjwcqPrkGwRPUcdTyGVQ?docId=e9c4e721a27d48868b749a8e3229f0b5

China extended its courtship of Hollywood on Wednesday, with government officials touting a new fund for co-financing movies.
The push comes just weeks after China's leader-in-waiting, Vice President Xi Jinping, unveiled rules that would give foreign films better access to its booming box office and a larger percentage of ticket receipts.

China is looking to learn from Hollywood and develop the ability to make commercially successful movies on par with the biggest blockbusters. U.S. studios are trying to break further into China, where box office receipts rose more than a third last year to $2 billion. That puts it on pace to become the world's 2nd largest movie market in a few years, expected to top $5 billion by 2015.

Meanwhile, North American theater revenue has fallen for two years straight, and ended the year with $10.2 billion in ticket sales. With attendance falling and DVD sales continuing to slump, China represents one of the most attractive growth opportunities for the U.S. movie industry.

Yang Buting, former chairman of one China's two national movie distributors, China Film Group, said that China wants to help make movies that appeal to both Chinese and global audiences while developing its fledgling movie-making industry.

"China boasts a long history and a rich culture," Yang told attendees at a film finance conference in Los Angeles. "But we must see that compared with the American film industry, we still have a long way to go in terms of screenwriting, production, marketing and distribution."

For the last decade, China has allowed only 20 foreign films a year — mostly big-budget Hollywood fare — to get national distribution in a tightly controlled system that limits the foreign share of ticket sales to a range from 13.5 percent to 17.5 percent.

The U.S. had pressed for further easing of the rules since 2007 and a state visit last month by Xi led to a breakthrough. Under the new rules, China will allow in up to 14 more foreign films a year as long as they are made in 3-D or for the big-screen Imax format, and raise the share of ticket sales to 25 percent.

China is also encouraging joint ventures where Chinese companies have a majority stake.

Films co-produced in such ventures can evade the quota system and get a higher share of ticket sales — up to 43 percent of all box office receipts, Yang said in an interview after his presentation.

Several tie-ups have been announced over the last year, including one announced last month that will give "Kung Fu Panda" maker DreamWorks Animation SKG Inc. a 45 percent stake in a Shanghai-based studio with three Chinese companies. That venture is expected to begin operation later this year.

Yang declined to say how much money would be in the fund, called the China Mainstream Media National Film Capital Hollywood Group Inc. He simply said the amount would be "adequate" to co-finance films made at the Hollywood studio level.

Chinese Venture Seeks Partners in Hollywood to Invest in Movie Projects
www.bloomberg.com/news/2012-03-07/chinese-venture-opens-office-in-hollywood-to-invest-in-movie-projects.html

[Aman A.K.A. Ahamburger]

Just like wages, American cinema starts growing in China and then spreads across Asia.

China's rise driving Hollywood interest in Asia
www.sgvtribune.com/ci_20212245/chinas-rise-driving-hollywood-interest-asia

[Aman A.K.A. Ahamburger]

A new Disney Theme park is set to open.... in Shanghai..

China Disney project secures $2 billion loan: media
www.reuters.com/article/2012/04/11/us-china-disney-loan-idUSBRE83A05A20120411

[Aman A.K.A. Ahamburger]

It's amazing how quickly the "reforms" are talking hold in, Iron man 3 is being co-produced in China. Which will be advertised as some kind of triumph by the commies govt no doubt Also, another American film has opened as the largest film ever in China. The Titanic 3d is a hit! When you consider that this is the first time that the Titanic (originally released in 1997) has been shown on the big screens in China, it's clear just how fast the new commie mantra of happiness not GDP is taking hold. It' also like the people in China have always wanted to be free.

Iron Man 3 to be China co-production
www.cbc.ca/news/arts/story/2012/04/16/iron-man-china.html

'Titanic' in 3-D has even higher Chinese debut than originally projected
latimesblogs.latimes.com/entertainmentnewsbuzz/2012/04/china-titanic-3d-box-office-opening.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+newsandbuzz+(News+%26+Buzz)

[Aman A.K.A. Ahamburger]

Its not just the movies anymore. It's getting pretty unreal to be honest. China is literally going to be, for a lack of a better way to put it, a little USA..

NBA China to build world-class stadium
www.chinadaily.com.cn/sports/2012-07/22/content_15606093.htm

DreamWorks to make 'Kung Fu Panda 3' in China
www.ctvnews.ca/entertainment/dreamworks-to-make-kung-fu-panda-3-in-china-1.905884

James Cameron takes 3-D film venture to China
www.reuters.com/article/2012/08/08/centertainment-us-china-jamescameron-3-d-idCABRE8770AD20120808?edition=ca

[Aman A.K.A. Ahamburger]

Can't forget about the drinks..

China Beer Industry Set For Boom, Nomura Says
articles.marketwatch.com/2012-07-24/industries/32808094_1_nomura-analysts-beer-industry-international-brewers

[Aman A.K.A. Ahamburger]

Had a couple mins here wanted to post this. Just like in the 70's and 80's Pro Wrestling is taking off in a new market in Asia.

Chinese fans bowled over by U.S. professional wrestling
www.reuters.com/article/2012/08/12/entertainment-us-china-wrestling-idUSBRE87B04820120812?feedType=RSS&feedName=entertainmentNews&rpc=986

Hollywood Eager to Feed China’s Appetite for 3-D
www.nytimes.com/2012/08/13/business/global/us-filmmakers-eager-to-feed-chinas-appetite-for-3-d.html?_r=1&partner=rss&emc=rss

[Driftr]

Aug 13, 2012 15:09:13 GMT -5 Aman A.K.A. Ahamburger said:

Had a couple mins here wanted to post this. Just like in the 70's and 80's Pro Wrestling is taking off in a new market in Asia.

Chinese fans bowled over by U.S. professional wrestling
www.reuters.com/article/2012/08/12/entertainment-us-china-wrestling-idUSBRE87B04820120812?feedType=RSS&feedName=entertainmentNews&rpc=986

Hollywood Eager to Feed China’s Appetite for 3-D
www.nytimes.com/2012/08/13/business/global/us-filmmakers-eager-to-feed-chinas-appetite-for-3-d.html?_r=1&partner=rss&emc=rss

Hmmmm. Perhaps WWE rather than HRB for me???

[Aman A.K.A. Ahamburger]

Just think if they get into India as well. I would have thought that the UFC would have finished them off here, but they are still huge in NA. It will be interesting to watch, but you would have to imagine that if it takes off in China, the WWE is going to see some REALLY good earnings as that gears up.

[tyfighter3]

If you want to do business in China, be prepared for this in general.
www.marketwatch.com/story/how-liaisons-led-to-massive-corruption-in-china-2012-08-14?link=MW_Nav_NV

[Aman A.K.A. Ahamburger]

I hear that Ty. However, you are aware of Pro Wrastlin' past right? I think the Chinese might learn a thing or two from Mcmahon.. LOL

[Aman A.K.A. Ahamburger]

A certain element wants us to think that our way of life is over, we continue to hear that our way is losing influence in the world. This thread so far has been about China’s new entertainment industry and how it seems to be mirroring the western worlds.

However, the gravity of the situation is much larger than that, in fact what is happening is that all service sectors in emerging markets around the world are starting to mirror the west.

What we are seeing is the result of decades of people immigrating to the west for a better life and our tolerance towards other cultures. Now that freedom has crept around the globe, the American system has captivated the minds of a whole new generation of people.


Survey: Half of Chinese like US ideas on democracy
news.yahoo.com/survey-half-chinese-us-ideas-democracy-145533982--finance.html

India’s Embrace of Foreign Retailers
www.nytimes.com/2012/10/10/business/global/younger-indians-eager-to-embrace-foreign-big-box-stores-and-malls.html?partner=rss&emc=rss&_r=0

KFC rules in Peru as nation is bastion of US fast food
www.independent.co.uk/news/world/americas/kfc-rules-in-peru-as-nation-is-bastion-of-us-fast-food-8219620.html

China Is Now World's Second Largest Film Market Behind the U.S.
www.movieswithbutter.com/blogs/china-now-worlds-second-largest-film-market-behind-us-390185

Now China’s big online video beast has all of Hollywood
finance.yahoo.com/news/now-china-big-online-video-150613847.html

IKEA furniture to retain Scandinavian style in India
in.reuters.com/article/2012/10/26/ikea-india-fdi-design-idINDEE89O0D420121026?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FINbusinessNews+%28News+%2F+IN+%2F+Business+News%29

Out of Africa: Kunle Afolayan bids to bring Nollywood cinema to the world
Hailed as the 'Martin Scorsese of Lagos', Afolayan is finding new ways to take his films beyond Nigerian borders – screening his latest, Phone Swap, at the Film Africa festival in London
www.guardian.co.uk/film/filmblog/2012/oct/30/kunle-afolayan-nollywood-cinema

Shoprite To Open 6th Store In Nigeria
www.ventures-africa.com/2012/10/shoprite-to-open-6th-store-in-nigeria/

Burger King Aims to Grab Market Share
www.themoscowtimes.com/business/article/burger-king-aims-to-grab-market-share/470345.html

India May Bring Starbucks To New Highs
seekingalpha.com/article/953751-india-may-bring-starbucks-to-new-highs

Chinese players will learn from Lin, says Stern
www.reuters.com/article/2012/10/17/us-nba-china-stern-idUSBRE89G0G320121017?feedType=RSS&feedName=sportsNews&rpc=986

McGrady's China move earns NBA plaudits
www.reuters.com/article/2012/10/18/us-basketball-china-mcgrady-idUSBRE89H09A20121018?feedType=RSS&feedName=sportsNews&rpc=986

Reading 'Gone with the Wind' in Pyongyang
omg.yahoo.com/news/reading-gone-wind-pyongyang-051805626.html

Yum raises forecast as China sales still surge
in.reuters.com/article/2012/10/09/yum-results-idINDEE8980EG20121009?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FINbusinessNews+%28News+%2F+IN+%2F+Business+News%29

The Amazing Spider-Man creates box office history
articles.timesofindia.indiatimes.com/2012-07-03/box-office/32522933_1_amazing-spider-man-favourite-superhero-box-office

Box office: 'Skyfall' has bumper opening in India
www.apunkachoice.com/content/article/sid100012174-box_office_skyfall_has_bumper_opening_in_india/

European Film Festival brings biggest ever lineup of 26 movies
www.globaltimes.cn/content/742187.shtml

The 5th annual European Film Festival in China kicked off Thursday at Chaoyang district's Sanlitun Megabox cinema in The Village, allowing Beijing to sample just some of the continent's best full-length movies and short films.

The selection of 26 films, from all EU member states except Latvia, mirrors Europe's diverse film genres and cultures. The program runs the range from dramas and romances to comedies and thrillers, while introducing the new faces of European cinema to Chinese audiences.

China replicates Italian town
thestar.com.my/lifestyle/story.asp?file=/2012/6/30/lifetravel/11534385&sec=lifetravel

Austrian town replica opens in South China
english.cntv.cn/program/china24/20120602/105748.shtml

American brands winners in global market
www.sfgate.com/business/article/American-brands-winners-in-global-market-3945740.php

Not long ago, the Red Peak Group, a global brand-consulting firm with offices in New York, began researching names for a new product in China - a pay-per-view and video-on-demand platform that would allow people to stream licensed Hollywood movies into their homes.

Along the way, they market-tested a range of Chinese-style names for the product. But in the end, the feedback was clear. Consumers in China preferred an American-sounding brand. The marketers went with YOU On Demand.

"What we found was that if you're associated with a positive part of America, which Hollywood is, they want you to be more American rather than more local," says Red Peak CEO James Fox. "There's still a status associated with American brands."

These days the same holds true, marketers will tell you, in the emerging middle classes in developing countries around the world. In Brazil and India, Russia and China, the value of America as a brand-enhancing, anabolic sales booster has never been stronger. Budweiser, General Motors, Tiffany, Jack Daniels, Levi's - the more American-sounding, the better.

In the first six months of 2012, Harley-Davidson's retail sales were up 16.5 percent in the Asia-Pacific region and 58 percent in Latin America. Tiffany's sales in Japan jumped 13 percent in the same period. In the past two quarters, Yum!, the parent company of KFC and Pizza Hut, has opened 328 restaurants in China.

[Aman A.K.A. Ahamburger]

Just a quick note on the 2012 film industry..

Hollywood tops Chinese film market in 2012, first time in four years
in.reuters.com/article/2012/12/31/china-boxoffice-idINDEE8BU01D20121231

China's 2012 box office was dominated by foreign films for the first time in four years as a deal cemented earlier this year saw more Hollywood film screened on the mainland, squeezing out domestic competition.

China's box office receipts are expected to reach 16.8 billion yuan in 2012 and about 8 billion yuan, or slightly less than half the receipts, are from domestic films, the official People's Daily reported on Monday, quoting estimates from the State Administration of Radio, Film and Television.

It is the first time in four years that domestic film receipts totaled less than 50 percent of the market and signals that the February trade agreement to allow more Hollywood movies to be screened in China is having a significant impact on the country's movie industry.

[Aman A.K.A. Ahamburger]

Even though I know we are heading towards a new Asian financial crisis, it's important to note that for the first time in history....

Services Set to Take Largest Share of GDP in Asia

From Japan’s expansion in the 1960s to the Asian tigers of the 1970s and China’s economic liberalization in the 1980s, Asia’s postwar growth has been driven by government strategies that poured investment into producing engineers and factories that made most of the world’s clothes, toys and electronics. With Asian wages and currencies rising, the investment-export model is becoming less attractive, and funds are switching to domestic consumer markets, increasing the need for banking, health care and retail workers.

“This is a natural consequence of Asia becoming wealthier,” said Donghyun Park, principal economist at the Asian Development Bank who has researched the region’s transition from manufacturing. “Millions are joining the middle class every year and demanding more services.”

All of this new wealth will be on display in China's Wanda's $8.2 Billion Movie Fund]. The most interesting thing here, this proves that without a doubt, China and the rest of the east are now developing just like any other western nation over the last 300 yrs.

[Aman A.K.A. Ahamburger]

Only a matter of time before people all over the world stand up to extremists because they want what we have here. Thanks JC.

In Nigeria, Basketball Dreams Are Growing

[Aman A.K.A. Ahamburger]

Free Enterprise, We WIN!.

China reports unexpected drop in September exports

China's exports suffered an unexpectedly sharp decline in September amid weak global demand but imports grew.

"China's dependence on external demand weakened," said the official, Zheng Yuesheng, deputy director-general of the customs agency's statistics department. "This shows China's economic development has transformed from being driven by external demand to domestic demand."

[Aman A.K.A. Ahamburger]

Even though we're in for some short term pain on many fronts, it's important to keep in mind what is shaping up after the fact. The Chinese leadership still plans on using their "war chest" to keep the war at home, at bay.

[bimetalaupt]

Mar 5, 2014 13:59:15 GMT -5 Aman A.K.A. Ahamburger said:

Even though we're in for some short term pain on many fronts, it's important to keep in mind what is shaping up after the fact. The Chinese leadership still plans on using their "war chest" to keep the war at home, at bay.

A+++,  the

interesting :WAR CHEST OF 100% DEBT. We are watching one of the best return to cash only debt free major growth.  Look at some of the books like AAPL or Google.  Chinese growth was financed with cheap money and cheap labor like India and Japan.  Most of the banks in China are insolvent.  There is a major off shore oil firm that most likely will go insolvent and the bonds and loans worthless. We saw that in Mexico with Citibank.

Just a thought,

Bruce

[Aman A.K.A. Ahamburger]

the ,

Thank you for the kind words.

YES 100% debt in the form of UST notes is repeating itself again! No matter what, China will want to help protect it's assets. Friday is due date, once again. The first of hundreds to come due over the next couple of years. How about the new numbers for the debt ratios on the economy? 220%!! China accomplished in 10 years, what took Japan 30 years to do..

Without a doubt the coming Chinese depression will end similar to the US's... Hilary Clinton even came out and said that Putin is ripping a page out of Hitler's playbook.

Deals, deals, deals.

Later,

[Aman A.K.A. Ahamburger]

Yes, the bearish trends are still present. However, as always, it's important to keep an eye on the changing tides. China's manufacturing sector recorded another month below the 50 mark(contraction), however, China official services PMI hits six-month high