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.
Founded in 2007 in the US, MUBI has taken a different approach in streaming movies from Netflix. There are only 30 movies available on its website but it adds one new movie while deleting another everyday. It charges a monthly subscription fee of US$4.99.
MUBI is available in more than 200 countries and territories, excluding China, according to the company.
OTT, which refers to over-the-top service, or delivery directly to the consumer through the internet, “is growing like crazy in China,” said Efe Cakarel, founder and chief executive of MUBI. “It is very important for us to come to China but we need to come in a very strong way.”
MUBI is also willing to adapt to China’s regulatory environment, “I am okay to show content that respects the government regulations,” Cakarel said. He said there will still be plenty of great movies that can be approved by the censors.
Cakarel said China will be the third country in the world to have a dedicated team select movies for local market after the UK and the US.
“I am moving to Beijing in March and will spend most of my time in China this year,” Cakarel said.
