Shaw Brothers targets to reestablish the influence of Hong Kong movies inChina
　　In a Shaw Brothers （953.HK, NR） press conference – 12% of which TVB ownsindirectly through its JV with China Media Capital （CMC） – Li Ruigang, vicechairman of TVB and chairman of CMC and Shaw Brothers commented thatafter restructuring Shaw Brothers, it targets to reestablish the influence ofHong Kong movies in China. Hong Kong has good human and financialresources, he explained.
　　Mr. Li will likely continue to increase the company's investment in HK. ShawBrothers is expected to invest —— RMB1bn this year, including eight movies andthree online dramas; some of which are based on TV dramas originating fromsuccessful TVB programs in the past. Some of its future productions will likelyleverage on TVB's production team, artists and its IP rights.
　　Deutsche Bank's view
　　Given the increase in channel competition and diversifications （i.e. free TV,internet, social media and etc）， there is demand for a different form of content.
　　TVB has been branching out to movie production from drama production.
　　Its movie production is now operated under its 12%-owned Shaw Brothers and5%-owned Flagship Entertainment Group, a JV with Warner Bros （TimeWarner TWX.US） and CMC. We believe that by teaming up with CMC, TVB isable to expand its scale in the movie industry and explore other potentials.