Chinese online giant Tencent Holdings is setting up a new film production business, Penguin Pictures. According to local media reports, the company, which competes with Alibaba and Baidu in the Middle Kingdom space, said the banner will concentrate on online dramas with minority investment in some 10-15 movies per year as it eyes development of its own pool of artists.
Tencent has already been active in the film sector, making an investment in Monster Hunt, the monster hit that has taken over $380M at the local box office. Rival Alibaba last year established Alibaba Pictures and is seeing the fruits of its first Hollywood investment as Mission: Impossible – Rogue Nation was released in China on Tuesday to $18.5M. There’s no word yet on Tencent’s strategy to invest in local versus Hollywood movies.
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