Dreamworks Animation has agreed to form a joint venture with China Media Capital to establish a China-focused family entertainment company. Oriental DreamWorks will develop original Chinese animated and live-action content for distribution both within China and around the world. Its first film should be released in 2016. Live entertainment, theme parks, games and consumer products are also planned. DreamWorks Animation has enjoyed a strong track record at the Chinese box office, led by its blockbuster KUNG FU PANDA franchise. The original KUNG FU PANDA was the #1 animated film upon its release in China in 2008 and last year, KUNG FU PANDA 2 became the highest-grossing animated film of all time in the region, grossing approximately $100 million. “When you look out five to seven years from now, China will be the number one media market in the world ,” Dreamworks CEO Jeffrey Katzenberg was quoted in the LA Times. “It’s a huge opportunity for us.” The joint venture plans to launch business operations in Shanghai later this year.