Warner Brothers exits from China's movie theatre mkt

BEIJING: Warner Brothers International Cinemas (WBIC) has decided to pull out of six movie theatres it currently runs with Chinese partners, citing "major regulatory changes."

The WBIC, a subsidiary of the US media giant Time Warner, has ceased investment in China's movie theatre market due to major regulatory changes, 'Beijing News' reported, quoting a company announcement.

The Chinese government in 2005 barred foreign investors from holding majority stakes in joint ventures in the entertainment sector.

WBIC will pull out of the theatres in six cities including Shanghai and Nanjing. "The final plan is under discussion," the report said.

The company had plans in 2004 to build 40 movie theatres in China by 2008 through local partners.

In 2003 China allowed seven cities to open theatres with 75 per cent foreign investment on a trial basis.

The Shanghai Film Group Corp. has shown interest in buying stakes in the six theatres.

Eight theatres invested or managed by WBIC in China had a total box office revenues of $15 million last year.