"Kung Fun Panda 3" earned a co-production status in China. This means that the company behind the famous animation film, DreamWorks Animation, would now have greater access and larger revenue share in the country's film market.
The good news comes at a right time. DreamWorks Animation's stock has not been doing so well lately and the company had already made hard decisions such as laying off its people and having a smaller release slate.
Being given a co-production status in China allows the animation company a bigger share in the world's second biggest film market, which is a status many other companies would like to have.
This status means that the film would be treated as if it is domestic, and therefore, would not be subjected to China's steep import quota. Films awarded this status can also enjoy higher chance of getting a mainland China release, immunity from blackout periods, as well as high as 43-percent increase in share of value.
Getting the status is a mean feat. Some huge movies wanted it but were not given the chance. For example, "Iron Man 3" rooted and lobbied hard for the status, but it was not able to get through China's strict filtering.
As reported by the State General Administration of Press, Publication, Radio, Film and Television (SAPPRFT) website, Dreamworks Animation, its Chinese unit Oriental Dreamworks and their Chinese partners--which include China Media Capital, Shanghai Media Group and Shanghai Alliance--achieved this highly sought-after status for the three-quel on Jan. 15.
Despite the good news, the Chinese release date of the animated film is not yet confirmed.