MUMBAI: This is a significant move in the race towards tapping the entertainment resources and outlets in China. Beijing Gehua Cultural Development Group (Gehua Group) and Clear Channel Entertainment (CCE), which produces and markets live entertainment events have announced a landmark, 50-year joint venture.
The JV will create a new entity Gehua Clear Channel Entertainment And Sports Company. The company will have a 50-year, first right of refusal to mount live tours of performance shows, promote international events, manage venues, sponsorship opportunities, ticketing, logistics, artist management, food and beverage services, merchandising, staging, sound and lighting.
The new company will bring international entertainment and sports events to China. It will also look to create opportunities through which Chinese artists and events can tour the globe. In addition the company will aim at creating international event and venue management systems within the Chinese sports and entertainment related industries.
Clear Channel like other media companies realises that with the robust growth of its economy, China offers tremendous potential as a destination for the live entertainment business. With its rapidly expanding middle class, China is emerging as the world's largest consumer market, and with its high concentration of young people (355 million people between 15 and 29), live entertainment is a compelling business and marketing opportunity.
Gehua Group GM Wang Jianqi says, "We want to present the world with many existing and developing Chinese cultural and sports events. We are looking to bring major events to the city of Beijing in a way that benefits the joint venture company, the citizens and the performers."
Acknowledging Beijing's history of success spanning many centuries, Wang added that the state-owned entity The Gehua Group's long-term partnership with Clear Channel Entertainment will ensure a legacy of substance and vision.
This is the first agreement to result from three years of discussions with political and cultural leaders of China. Clear Channel Entertainment has focussed on understanding those leaders' vision for the future of China's sports and entertainment industry. It has evaluated the potential development of more than seventeen Chinese cities. It has also devoted time and research to determine the business structure that would create opportunities for success; and has selected each city's most experienced and prominent sports and entertainment entities.
CCE senior VP Ed Cunningham says, "From the first moment I landed in Beijing, it was clear that the political and business leadership in Beijing was committed to providing every citizen with access to world-class sports and entertainment events. The partnership is an important step in reaching this objective, and it is a monumental opportunity both for the development of China's sports and entertainment industries. We have all worked diligently and tirelessly to achieve this
objective, and now we will continue to work together to establish a foundation for sports and entertainment in Beijing and throughout China, a foundation that we hope will support major events for decades."
