Perfect World looks westward
Updated: 2016-07-07 11:19
By Lia zhu in San Francisco(China Daily)
Employees of Perfect World Entertainment, a Redwood City, California-based subsidiary of Perfect World Co Ltd, are building team spirit in a baseball game in San Francisco. Provided To China Daily
Perfect World Pictures Co Ltd, a China-based multimedia enterprise, looks to the US market to deepen its globalization strategy through its core business in games, movies and television.
The Beijing-based Perfect World Pictures announced in April 2016 that it had merged with Perfect World Co Ltd, a major Chinese online game developer and publisher, for around $1.8 billion, and is set to develop the pan-entertainment industry at a faster pace.
In the operation of movies and television, Perfect World Pictures produces around 500 episodes of TV series every year and numerous local-language movies. Being one of the marketers of foreign films in China, Perfect World Pictures has also brought films, such as Ghost Rider 2, The Last Stand, Ender's Game, Rush and the Divergent franchise, into the Chinese market.
In February this year, the company further boosted its globalization strategy by entering into a five-year agreement with US film conglomerate Universal Pictures.
Under the agreement, the Chinese company would participate in the Universal films with an investment portion of about 25 percent. The partnership will begin this year and last five years or for 50 pictures. The company will be entitled to permanent global proceeds of the Universal films in which it invested, including box office, multi-media distribution and merchandise revenue.
It represents the first time a Chinese company has invested in a multi-year deal with a major Hollywood studio, and the first time a non-State-owned enterprise (SOE) company has worked directly with a major studio in the US.
The deal is one of the important steps for Perfect World to realize the strategy of "developing a comprehensive platform integrating the world's technological and cultural essence", according to Robert H Xiao, CEO of Perfect World Co Ltd.
The agreement will also help Universal increase its influence in the Chinese market through Perfect World's experience in production and distribution, and help Perfect World better understand the US cultural industry and pave the way for expanding overseas market, he said.
Especially after the merger of Perfect World Co Ltd by Perfect World Pictures, the deal is expected to help Universal Pictures monetize its IP in games, said Xiao, adding that the two sides also will collaborate in other related areas.
As for games, Perfect World Co Ltd released the virtual reality game Subnautica in March. The open-world survival game, developed by Unknown Worlds Entertainment, a San Francisco-based subsidiary of Perfect World Co Ltd, allows a player to explore an aquatic alien planet by scuba diving and traveling in submersibles, while collecting resources and food to survive.
The PC version of the game gained popularity at the online game platform Steam since it was released in December 2014. The Xbox One version has been released in April 2016.
In May, Perfect World Entertainment, a US subsidiary of Perfect World Co, Ltd, announced that it will publish Gigantic, a multiplayer online battle arena video game developed by Motiga. Release is set for late this year.
In the coming years, Xiao said Perfect World will continue to seek partnerships with US and European developers to further grow the international market and increase overseas revenues.
This year, the company will push further for cooperation with overseas top artists to become a leader of international operations among Chinese cultural enterprises, Xiao said.
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