Although Marvel Entertainment had initially announced its intention of coproducing Iron Man 3 in China with DMG Entertainment, a Chinese media group, it later decided not to do so, possibly because to approve a co-production the Chinese government requires specific Chinese elements and that China has to be central to everything the film is about, the London Financial Times reported today (Thursday), citing a Hollywood executive familiar with the process. To do so, Marvel likely concluded, might have harmed the film's appeal in other overseas markets. However, in not applying for co-production status, the studio forfeited its ability to command half of box-office revenue in China, the second-largest film market in the world, and was required instead to settle for 25 percent -- the same percentage that all other Hollywood films currently net. Indeed, the Times observed, no Hollywood film has yet been released as a co-production with China. It appears that the first to qualify will be the animated Kung Fu Panda 3, which will not be released until 2015. It is being produced by Oriental Dreamworks, a joint venture between DreamWorks Animation, China Media Capital, Shanghai Media Group and Shanghai Alliance Investment Ltd.
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