Time Warner and China’s leading investment fund focusing on media and entertainment, China Media Capital (CMC), today announced formation of a strategic investment partnership meant to capitalize on China’s rapidly expanding media sector. The announcement came during the 2013 FORTUNE Global Forum, happening through June 8 in Chengdu, China.
As digital devices proliferate among China’s 1.3 billion citizens, the partnership with CMC offers Time Warner a unique window into one of the world’s largest and fastest growing media and entertainment markets.
“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,” said Time Warner Chairman and CEO Jeff Bewkes in the release announcing the partnership. “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 (CAGR) 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.
The partnership is just one more example of Time Warner’s dedication to finding opportunities for growth in expanding international markets.