Dentsu anticipates the venture will boost its standing, and client base, in China. Shoichi Yamamura, executive officer overseeing Dentsu's Asian business, said: "I am sure that our involvement in this new venture will result in attracting new business prospectives for the company."
Yamamura also anticipated further tie-ups with SMG. "Being a partner with this entertainment and media conglomerate, which has radio and newspaper companies under its umbrella, will open doors to a new tie-up in radio and newspaper media."
Dentsu would consider similar partnerships with other Chinese broadcasters if the right opportunity presented itself, Yamamura added.
The main focus of the new company, SFS-Dentsu Media & Entertainment, will be supporting the SMG-owned Shanghai East Movie Channel, a pay-TV cable service which started broadcasting in December last year. It is co-run by SMG's movie production subsidiary, Shanghai Film Group, and Beijing Dentsu Advertising, with the local firm taking a controlling stake. Zhonglun Ren, vice-president of SMG, who originally suggested the link-up with Dentsu, becomes chairman of the new operation while Wanjun Jin, director of the media division in Beijing Dentsu Advertising's Shanghai branch, is general manager.
In addition to arranging programming and selling ad slots for the Shanghai East Movie Channel, SFS-Dentsu will also run ad hoc event promotions, such as the forthcoming 7th Shanghai In- ternational Film Festival where Dentsu will source films from Japan.
In Japan, Dentsu is an established player in the movie business, producing films such as Spirited Away and selling the TV rights for blockbusters such as Lord of the Rings as well as local anime titles.