Redrover Ltd., Korea's leading animation producer, will join hands with China's Suning Group to move into the world's largest content market.
Redrover said on September 21 that it signed an agreement to establish a joint venture with Suning Universal Media, a content subsidiary of the largest private-sector business group in China. The subsidiary, to be formed in Shanghai, will have an initial paid-in capital of 100 million yuan (US$15.7 billion), with Suning chipping in 67 million yuan while Redrover holding the remaining 33-percent stake.
The joint venture will take part in the production process of upcoming animation films such as "The Nut Job II," "The Nut Job III," and "Black Cat Pirates" and take charge of marketing in China. The partners in the joint venture expected they would be able to take a sizable market share in the fast-growing Chinese film market with an annual growth rate of more than 30 percent.
The partners will also take advantage of the extensive sales network through online and physical channels of Suning Group. They also expected substantial sales in the toy market. A Redrover official said, "With the latest agreement, we will be able to secure a steady stream of working capital needed for producing upcoming films such as The Nut Job III and Black Cat Pirates. In addition, all new projects we will undertake in the future will have a strong investment backing of Suning Group." He added, "The working relationship with Suning will continue for future global animation production projects."
