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China Film Group Partners with U.S. Replication Company

10 Apr, 2007 By: Erik Gruenwedel

Seeking to establish a foothold in China's highly regulated film and entertainment industry, Los Angeles-based Crest Digital April 10 announced the formation of a partnership with China Film Group (CFG), the largest state-owned media company in the communist country.

Under terms of the joint venture, Crest and China Film Group will orchestrate a series of home entertainment distribution channels, including DVD, CD, video-on-demand (VOD), IPTV and electronic sellthrough.

Crest, which has disc authoring, encoding, menu design and replication contracts with all the major studios, is collaborating with CFG to build a state-of-the-art DVD, CD and high-definition manufacturing facility that will employ 500 people near Beijing.

The partnership comes as the U.S. has said it plans to file formal complaints with the World Trade Organization regarding China's rampant piracy of Hollywood movies and music.

Crest COO Eric Loong said the deal with CFG is critical to Hollywood wishing to distribute content and intellectual property in China.

“China Film Group is a critical component for Hollywood and foreign-content owners seeking distribution of their valuable entertainment optical software and intellectual property in China,” said Loong. “Crest is the first digital media services company to create this type of partnership in China.”

The two companies said they would announce in the next months additional projects, including one focused on anti-counterfeiting technology.

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