Huanxi will invest $40 million in Mubi China for 70% of the joint venture entity. Mubi’s contribution by way of license of its intellectual property and know-how into Mubi China will be for 30% of the joint venture entity.
Huanxi, headed by producer Dong Ping, will also pay $10 million for an 8% stake in London-based Mubi.
Mubi introduces to its subscribers one film each day, available for 30 days and accessible across multiple devices, via a monthly or yearly subscription. It plans the same model in China.
“There is a growing demand by Chinese audiences for quality content online. Our joint venture with Mubi would allow us to combine our deep expertise in creating, acquiring original, event-driven content in China with Mubi’s powerful, user-friendly platform,” said Dong in a statement.
Mubi has recently secured exclusive rights to Paul Thomas Anderson’s Junun and signed deals with Sony Pictures Television, Paramount Pictures, Miramax, eOne, Icon and StudioCanal. In April, Mubi will partner with New Wave Films to release Miguel Gomes’ “Arabian Nights” theatrically in the U.K. and online via the streaming service.
Dong is a veteran producer with credits including “Crouching Tiger, Hidden Dragon” and “Journey To The West.” He was also formerly the head of ChinaVision, a company later acquired and renamed as Alibaba Pictures Group.