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Shanghai: After years in the making a group of seasoned movie industry executives have formed an innovative studio called LABS (Los Angeles-Beijing Studios) with an ambitious mission to evolve the Hollywood studio system from the outside in.

Headquartered in Los Angeles, but with offices and operations in Beijing, Shanghai and Taipei, LABS has set its well-funded sights on full integration of the two biggest film markets in the world – China and North America. LABS is certainly not the first company to connect these two markets, but their bridge is paved with a unique approach to take competitive advantage of the bourgeoning China market.

Total gross box office receipts in North America reached approximately $9 billion in 2014, whereas US-produced movies garnered $14 billion overseas. Significantly, box office revenues in China surpassed $4.8 billion for the first time last year while hits like Transformers 4 and Fast 7 made more money in China than North America.

LABS’ CEO, Al Ovadia, says there’s a hidden significance to China’s growth, and opportunities for the studio lie well beyond box office receipts. “Merchandising, franchising and global co-productions --which we call our ‘Golden Triangle’ is LABS’ primary strategic model.”

Ovadia headed the licensing department at 20th Century Fox, overseeing global licensing, operations, product placement, branding and promotions in addition to helming the interactive division. His success in licensing and brand management was later recognized at Sony Pictures where he was executive vice president of consumer products, including management of the Spider-man franchise and other blockbuster hits.

“We believe that the LABS model of integrating merchandising and licensing beginning as early as the script stage will impact US-China co-productions artistically and financially. This high level of complex engagement and early commitment, bonding story and consumer products, doesn’t currently exist in the Chinese film industry, and is a rarity in Hollywood.”

“LABS’ competitive advantage is in our proven ability to develop blockbuster projects that also qualify as co-productions in China. Ultimately as we sync with the China government, we hope to help inspire movie fans internationally to enjoy and pursue other Chinese content films,” Ovadia said.

LABS has assembled over 100 intellectual properties in its development pipeline led by producer and LABS exec Sriram Das. With nearly 20 completed screenplays in the works, the new studio is actively engaged with the China government to clear its slate. Das explained, “The first phase of our production plan includes sci-fi, fantasy, animation, action-adventure and star studded thrillers. What’s more, I’m excited to help make these genres augment our Golden Triangle strategy with Ovadia at the helm.”