Online video streaming service MUBI to partner with Hong Kong company in mainland push
Graceful, a subsidiary of Huanxi Media Group, will take a 70pc stake in joint venture
Online video-streaming service MUBI, focused on international arthouse cinema, is looking to race ahead of Netflix in expanding into mainland China before November, according to the company’s Hong Kong-listed partner.
Dong Ping, chairman of Huanxi Media Group, told the South China Morning Post that the proposed joint venture between its subsidiary, Graceful, and MUBI will partner with a third-party holder of an online streaming license on the mainland to expedite MUBI’s foray in the market.
“We have to figure out a way to operate in China without dealing too much with censorship”.
One way to do it is to show less foreign movies, about two-thirds of MUBI’s streaming movie offerings on the mainland will consist of Chinese films, Dong said.
Beijing restricts the content and the numbers of foreign movies released theatrically as well as well as on websites every year. Foreign movies go through more administrative procedures than domestic films.
“Because of Chinese censorship and regulations, it is impossible to just move MUBI into China,” Dong said.
In a framework agreement announced earlier this month, Graceful will inject US$40 million to the joint venture for a 70 per cent share and MUBI will contributes its intellectual property in exchange for the remaining equity. Graceful will also make a US$10 million investment in MUBI for 8 per cent of MUBI’s share.