Songcheng Performing Arts joins hands with US SPACES to do VR, spending 160 million yuan, accounting for 80% of the shares

Songcheng Performing Arts Development Co., Ltd. plans to use its own capital of RMB 160 million to establish a joint venture with American technology company SPACES to establish a subsidiary SONGCHENGSPACES (tentative name). The company's shareholding will account for 80% of the joint venture company.

Original title Songcheng Performing Arts: Spending 160 million yuan in VR joint venture with SPACES of the United States

, Songcheng Performing Arts Development Co., Ltd. plans to use its own funds of 160 million yuan to establish a joint venture with SPACES to establish a subsidiary SONGCHENGSPACES (tentative name). The specific form of capital contribution is that Songcheng Performing Arts will contribute 160 million yuan in cash to account for 80% of the joint venture company, and SPACES will use assessed intangible assets to account for 20% of the joint venture company. Songcheng Performing Arts also hopes to break through the core technology of VR, seize the opportunity of the times to integrate culture and technology, and achieve the integration of "performing arts + theme parks +VR" to create huge market value.

The joint venture established by Songcheng and SPACES includes the development and operation of VR and AR theme parks; the application of VR and AR technologies in live entertainment fields such as performing arts and performances; and VR and AR digital platforms and Internet applications. The joint venture company will own all relevant intellectual property rights developed.

According to the arrangements of the relevant service agreement, Songcheng Performing Arts will be responsible for the daily operation and promotion of the joint venture company, and SPACES will provide relevant VR and AR technology, operational services and support to the joint venture company.

2016 is a critical year for Songcheng Performing Arts to build a prosperous ecosystem and accelerate the pace of internationalization. Songcheng Performing Arts stated that it will aim to connect "people and entertainment", focus on the "fan economy", use IP as the source driving force, and use creativity as the core competitiveness to create a four-in-one "live entertainment + Internet entertainment + tourism and leisure +IP", a comprehensive entertainment ecosystem with both online and offline two-wheel drives and interconnected.

In 2016, Songcheng Performing Arts continued to invest in science and technology. On July 19, 2015, Songcheng Performing Arts planned to invest 139 million yuan to obtain a 20% equity of Zhejiang Shenda Intelligent Technology Co., Ltd. through a cash capital increase, and signed a letter of intent for equity investment with Shenda Intelligent. This cooperation between the company and SPACES is the beginning of Songcheng's overseas and technology strategy.

Since the beginning of 2006, a wave of commercialization and popularization of VR has been launched around the world. Songcheng Performing Arts also hopes to break through the core technology of VR and seize the opportunity of the times to integrate culture and technology. Songcheng Performing Arts believes that the form of the theme park can meet the huge space and scenery required by VR, and is the most immersive entertainment experience place.

Songcheng's combined product form of performing arts and theme parks and the number of tourists exceeding 23 million last year will undoubtedly become the most extensive and suitable application place for VR. SPACES has the world's top VR, AR, and MR technology and content. The two founders are the former co-heads of DreamWorks 'Dream Lab. They have led hundreds of VR and MR projects in DreamWorks and have worked with major entertainment, film and television companies in the United States. Maintain close cooperation and contact with relevant independent studios. Songcheng Performing Arts and SPACES will combine their strengths and complement each other, which will create huge market value.

The joint venture established by the two parties will be committed to developing breakthrough and innovative virtual reality, augmented reality, mixed reality and 360-degree experiences and services for the China market, and promoting the above technologies and content to the United States and other countries around the world. The joint venture company will vigorously develop VR theme parks and experience halls in China. It will also superimpose AR and MR technologies on the existing and future live performances in Songcheng to realize the coexistence of real and virtual worlds on the same stage and provide audiences with live viewing effects. In addition, the joint venture company will also assist the company in developing its own IP and obtaining high-quality media and entertainment content from the United States.

This investment is an important measure for Songcheng Performing Arts to implement overseas strategy, technology strategy, and IP strategic goals, and is of promoting significance for its future development.

Editor: Nancy