According to PWC, the Media and Entertainment sector is estimated to grow by an average of 5% per year globally till 20191. In particular, AGCS sees significant opportunities in Asia, which is estimated to beat the global average and grow by an average of 6% per year in the same period.
UNESCO2 statistics see Asia dominating the film industry, accounting for nearly half of the world’s movie production with 44% of movies produced in 2015. The 47 stage Ramoji Film City in Hyderabad, India, spans 1,666 acres and holds the Guinness World Record for being the largest film studio in the world. The live music segment is also thriving, as global brands like US dance festivals Ultra Music Festival and Electric Daisy Carnival, and UK festival Creamfields have expanded and made their debuts in Asia in recent years.
Increasing Chinese investment in Hollywood, a rise in the number of co-productions and local productions will raise demand for Entertainment insurance in the world’s second largest movie market behind the US, accounting for 8% of movies produced. From 2005 to 2015, China’s film production more than tripled, rising from 260 to 686 movies. On an international scale in 2017, China has invested over USD 5 billion in Hollywood. Dalian Wanda Group acquired US studio Legendary Pictures in 2016, making it the first Chinese firm to own a Hollywood studio. In the same year, Alibaba announced a partnership with Hollywood’s top grossing director Steven Spielberg to produce, distribute and finance films both in China and globally.
Michael Furtschegger, Head of Entertainment International AGCS, commented: “We have seen a greater demand for Entertainment coverage from the region in recent years, with the increasing number of live events both locally and across Asia, as well as Chinese investment in Hollywood. AGCS will be looking to leverage on our strong reputation as a global player providing first class Entertainment insurance products and services to capitalize on these opportunities and gain a leading market share in Asia in the next three to five years.”
AGCS has already seen early success for its Entertainment line in the region, having insured the production of “Bleeding Steel”, a Jackie Chan film that was produced across various locations.