Working in harmony with Hollywood

China's Pangu Investment Company has announced it has settled its dispute with Paramount Pictures ahead of the release of Transformers 4: Age of Extinction in China. Previously the Beijing-based developer filed a lawsuit against Paramount, accusing the movie company and its two Chinese partners of failing to include its landmark building in the movie as agreed. The case shows that it is still not easy for Chinese companies to have their products included in Hollywood blockbusters.

In 2009, Metersbonwe managed to place ads in Transformers 2, which was the first time a Chinese brand cooperated with a Hollywood blockbuster. Metersbonwe subsequently produced a Transformers T-shirt which sold over 1 million pieces, rapidly raising its revenues.

Most Chinese brands cooperate with Hollywood movies through intermediary agents. They will usually charge more than $1 million, this will cover both the product placement and the authorization fees for the brand to use the film's content and image to advertise and develop derivative products.