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Look no matter what I'm here for the long term this has a big future and it's worth the wait especially when the revenue starts coming in this will explode!
Right...
I got a feeling yod is going to have a good week!
2/17/2012 8:00:00 AMDeals Concluded With iQIYI, Sohu, YOU On Demand And Youku HONG KONG, Feb, 17, 2012 /PRNewswire via COMTEX/ -- Celestial Tiger Entertainment (CTE), the recently-launched independent Asian media company, today announced several major content licensing deals for Video On Demand (VOD) rights with multiple platforms in China, including iQIYI, Sohu, YOU On Demand and Youku. The deals establish CTE's presence as a significant content distributor in Asia in addition to its operation of six branded pay TV channels across Asia Pacific. The deals encompass feature films and television content from the Lionsgate (LGF) library, and enable CTE to further penetrate China's booming 2 billion-plus RMB ($300 million U.S.) video-on-demand market. Lionsgate, a diversified global entertainment company, is partnered in CTE with Saban Capital Group and Astro's Celestial Pictures. "These VOD deals represent just the first step for CTE's content distribution in China," said Wendy Reeds, CTE's Executive Vice President, Content Sales and Distribution. "CTE has a strong library of film and television content from Lionsgate, as well as original CTE productions, that we are proud to bring to viewers in China." "We are pleased to have the opportunity to work with the leading video-on-demand companies in China to strengthen their product offerings to their users, and we are excited about participating in a market that is achieving such unprecedented growth," said Jenny Suen, Director, Content Sales and Distribution. CTE noted that its content licensing deals meet a rapidly growing need for copyrighted content in the intensely competitive 2 billion RMB Chinese online video market, which is poised for continued strong growth after a 170% increase in 2010 over the previous year. As the exclusive sales agent for all of Lionsgate's content in Greater China and Southeast Asia, CTE has access to a vast array of commercially successful and critically-acclaimed films and television series, and the licensing deals announced today included Quentin Tarantino's classic Reservoir Dogs, Lionsgate's Oscar-winning drama Monster's Ball, director David Lynch's sci-fi classic Dune, the action franchise Crank, and the multiple Emmy© Award-winning television series Mad Men. CTE's licensing deals are for non-exclusive VOD rights with the following companies:
iQIYI is an independent online video company founded by top Chinese search engine Baidu (BIDU), and Providence Equity Partners, and focuses on licensed, high-definition, professionally-produced content. For more information, please visit .
Sohu.com Inc. (SOHU) is one of China's leading Internet companies with services encompassing news, search, communication, and entertainment, with a strong presence in the online video industry. For more information, please visit .
YOU On Demand Holdings, Inc. is a leading national Pay-Per-View and Video On Demand platform that offers premium content on a transactional and subscription basis. For more information, please visit
Youku Inc. (YOKU) is China's leading online video site, and features user-generated, self-produced, and licensed content from over 1,500 content partners. For more information, please visit
Media enquiriesPauline PoonCelestial Tiger EntertainmentT: 8522626 8131E: pauline.poon@celestialtiger.com For Lionsgate corporate inquiries, please contact: Peter D. Wilkes310/255-3726 pwilkes@lionsgate.com
The middle class in China has topped more than 300 million people. And they are a growing factor in the world's economy.
Q. What does that mean for the U.S. and the rest of the world?
A. It means a lot of opportunities for American companies selling in China.
A lot of U.S. companies are doing extremely well in China. While GM filed for bankruptcy a few years ago, their sales in China soared. Chinese consumers helped GM to turn around.
Nike is doing so well, Pizza Hut, Kentucky Fried Chicken. A lot of smaller companies are looking to sell into China. That will help the American economy.
Because of rising wages in China, we are already seeing some manufacturing jobs come back to this country. Those jobs will continue coming back and that will create jobs in the U.S. as well.
The same thing goes for the Western economy in general. Chinese consumers love Italian products. They want Italian products made in Italy.
Everybody's got to chill out I really like what happen after hours! Long and strong!
I like this post you put out in june of 2012 it only gotten better since then so what is your excuse? http://investorshub.advfn.com/boards/read_msg.aspx?message_id=76197993
Shake and bake baby just make sure you're not shorting the stock!
Good one LOL......
Thank you just bought more.
There’s never been a better time to engage with vod in china you on demand has the winning China strategy they have the right local partners and government contacts to enable success.
China’s entertainment industry a perfect trifecta of opportunity a huge potential market that has only begun to be tapped; growth that is unprecedented in the history of the movie business! If you’re not making China a major priority then you’re probably squandering the opportunity of a lifetime. Before you know it China will be the world’s largest movie and vod market the entertainment is getting hot in asia look how many move theaters started popping up , and if you’re not thinking and acting on that reality every single day then you’re not doing enough.
China is not only growing fast, it’s changing fast too.
* 4229.1 million population in Asia
* 800 million global TV audience
* 400 million homes with Pay TV across Asia Pacific
* 4.6 million households with 3D TV
* US$55.8 billion TV subscriptions and license fees in Asia Pacific
* US$226.5 billion entertainment and media spending in Asia
Chinese Theatrical Market Booms, But Real Action May Be In Video On Demand!The Motion Picture Association of America released statistics today saying that Chinese theatrical revenue grew 35 percent to nearly $2 bill…Mar. 23, 2012 The Motion Picture Association of America released statistics today saying that Chinese theatrical revenue grew 35 percent to nearly $2 billion last year, making China the world’s third biggest film market behind the U.S. and Japan. More quietly, though, a U.S.-based upstart VOD distributor, YOU On Demand, might be emerging as an even greater force for U.S. studio profits in China.
Much attention has been paid to last month’s relaxation of trade restrictions in China, which increased the number of American films that can enter the country each year for theatrical play from 20 to 34, while upping their revenue splits from a paltry 13 percent to a slightly better 25 percent.
However, under the direction of former professional wrestler Shane McMahon — who cut his global media teeth working as an executive under his father, World Wrestling Entertainment impresario Vince McMahon — YOU On Demand is on a trajectory to become an even more lucrative revenue stream for U.S. movie suppliers in the emerging market they view as having the most potential.
The New York-based company — which is in the midst of seeking a listing on the Nasdaq — made headlines last summer, when it signed Warner Bros. to the first ever VOD deal in China. Just within the last month, YOU On Demand has announced similar agreements with Disney (NYSE: DIS), Lionsgate (NYSE: LGF) and Magnolia Pictures, and more big U.S. studio partnerships are expected to be announced soon, a company spokesman told us.
YOU On Demand is just getting started in terms of infiltrating the vast Chinese consumer market, but growth prospects appear promising.
YOU On Demand entered China under a 20-year exclusive contract from the government to run national VOD services. Like other foreign companies entering the Chinese market, its’ doing this via a joint venture — in this case with the Chinese broadcaster CCTV-6 and its pay-TV arm, China Home Cinema. Through that partnership, YOU On Demand’s VOD service is already in 3 million Chinese cable homes equipped with digital set-top boxes via carriage deals with four local cable systems. It is the leading transactional VOD service in China, controlling about 88 percent of the market.
By the end of 2012, YOU On Demand expects to be in 12 million homes with additional cable deals in place. YOU On Demand currently charges consumers anywhere from $1 to $3 per movie rental, but hopes to evolve that to $3 to $5 as more Chinese consumers get used to legally paying to watch American movies. Meanwhile, the company is playing both ends of the business-model spectrum, with plans to also launch a Netflix-like subscription VOD service sometime later this year.
YOU On Demand has been able to entice American studios with a “anything is better than nothing” proposition, given the traditionally rampant piracy of U.S. video content in the region. Going forward, the company projects sizable revenue for its U.S. partners, who provide their video content on a revenue share basis under which they control a majority interest.
This split, of course, beats the 75-25 arrangement the Chinese government has agreed to for U.S. theatrical releases in the country. Also, U.S. VOD suppliers aren’t subject to the same 35-movie-per-year quota that they endure on the theatrical side.
BTIG Research analyst Richard Greenfield in a blog post Wednesday: “Whether or not YOU on Demand remains the leader in transactional VOD and can successfully enter the SVOD business in China, the Chinese VOD/iVOD and SVOD ancillary revenue market should be an increasing focus of global media investors over the next couple of years.”
You on demand is increase its foothold in China Too me eventually it's big bucks and Don't be surprise Companies like Netflix will love to be in that Marketshare
In China for example, we expect the number of VoD households to increase at a CAGR of 64% from 2009 to year-end 2014, while DVR households will grow at a 59% rate. By our estimates, these rapid growth curves will translate into more than $1bn in DVR revenue and nearly $240m in VoD revenue in 2014. Explosive growth will also take place in India.
Let me clear that just about little over year ago And over 18 million Homes already It's only going to get better Go check out how cable companies working in China you will discover Slowly but surely Most of them already getting set up with vod Programming the cable companies are offering, We are on the ground floor only takes one switch to turn this monster on!
What do you expect company just launched year ago Look how much they have accomplished. You show me a start up company year old That has done as much as this company has done In this sector Just for arguments sake go check out Netflix when they started!
Starting in January, Guangxi Cable's VOD-ready customers will be able to enjoy YOU On Demand's Transactional Video On Demand Increases Distribution to 18.2 Million Cable Homes Passed Nationallyhttp://finance.yahoo.com/news/demand-signs-guangxi-cable-video-140000653.html
Needham & Company, LLC is a nationally recognized investment banking and asset management firm focused solely on growth companies and their investors. Founded in 1985 by George Needham, David Townes and Raymond Godfrey, Jr., the firm is headquartered in New York City with offices in Boston, San Francisco, and Menlo Park, CA.
Needham’s principal activities involve assisting our clients through a variety of advisory and transaction-related services, with a specific focus on:
Public and private financings
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Equity research
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Since its inception, the firm has acted as lead or co-manager in over 500 public offerings (including 200 IPOs), been an agent on more than 80 private placements, and completed over 275 mergers and acquisitions. Together, these transactions total almost $60 billion.
At Needham, extensive experience in our markets, combined with the teamwork inherent in our independent partnership structure, enables us to provide clients with the long-term advice they need to achieve their business goals. The Firm's commitment to exceptional service is unique in today’s business climate, and is born of a tradition which stresses integrity above all else. http://www.needhamco.com/Default/AboutUs/Overview.aspx
15th Annual Needham Growth Conference
January 15 - January 17, 2013
The Needham Growth Conference (NGC) gives institutional investors, private equity firms and venture capitalists access to 350 growth companies from a broad range of industries including Clean Technology, Communications, Consumer, Enterprise Infrastructure, Healthcare, Internet & Digital Media, Semiconductors & Semiconductor Equipment and Software & Services sectors. In addition to presentations by senior executives, the NGC features three outstanding keynote speakers, and a variety of thematic panels. These panels feature senior managers and industry experts discussing critical topics that will impact technology stock valuations in 2013 and beyond. A key goal of the NGC is to deliver investable choices coupled with a better understanding of the rapidly changing environment in which each company operates. The NGC’s early January timing makes it the perfect way to start the year, with a critical eye toward creating the ideal portfolio for 2013. The 3-day NGC features public and private company presentations, Q&A sessions, and 1-on-1 meetings for qualified institutional investors and venture capital firms. This conference is by invitation only. Please contact your Needham salesperson for registration details as space will be limited.
Thanks I hope for all of us we make it big here The big increase in viewer numbers 18 plus million the odds are looking pretty good here!
Let's just say everything does work out Do you see a forward split here because of the stock being so tight And if everything does work out in our favor where do you see yod this year?
We just have to sit back and wait now the reward is going to be worth it With all the signing up there doing where not talking thousands were talking millions The revenues are going to go through the roof and so is YOD!
Headquartering its Chinese operations out of Beijing, YOU On Demand has positioned itself is one of the more vital distribution hubs for U.S. films, with studios including Warner Bros., Disney, Lionsgate and Magnolia signing output deals with the company within the last year.
Like other foreign companies entering the Chinese market, YOU On Demand is accomplishing its goals via a joint venture — in this case with the Chinese broadcaster CCTV-6 and its pay-TV arm, China Home Cinema. Through that partnership, YOU On Demand’s VOD service is already in 18.2 million Chinese cable homes equipped with digital set-top boxes via carriage deals with four local cable systems. It is the leading transactional VOD service in China, controlling about 88 percent of the market.
By the end of 2013,YOU On Demand expects to be in 30 million homes with additional cable deals in place. YOU On Demand currently charges consumers anywhere from $1 to $3 per movie rental, but hopes to increase that to $3 to $5 as more Chinese consumers get used to legally paying to watch American movies. Meanwhile, the company is playing both ends of the business-model spectrum, with plans to also launch a Netflix-like subscription VOD service sometime later this year.
Wait until these guys show some revenues down the road don't be surprise the stock does a forward split down the road it is just amazing it's trading at these levels just have to have a little patient here I can see this being the next Netflix Of China!
The cable segment in China is expected to be the dominant digital platform for HD programming in the country by the end of 2009, stated the IMS Research report.
According to a March 2008 Communications Technology story, China has an estimated 160-190 million cable subscribers. Many of these subs signed up in anticipation of the 2008 Summer Olympics.
IMS Research reported that digital cable is expected to pass 69 million Chinese households by year-end 2009 and forecast that 3.2 million digital cable households will have the capability of viewing HDTV programming by the end of 2013. We're in the right place at the right time,this is not going to be here Much longer!
According to Global Times, a new China-ASEAN movie industry base will be built in Fangchenggang, Guangxi Zhuang Autonomous Region to boost the international cooperation of the film industries between China and Southeast Asian countries.
The city government of Fangchenggang, the China Film Association and the China Film Foundation will cooperate on the project, which intends to bring a 100 billion-yuan ($15.4 billion) investment to the city.
The project aims to build an international film and cultural industry base and will include an international movie production base, movie trade center, talent education base, leisure center and creative advertising center, according to the city government, which signed the cooperation contract with its partners on Monday 31 May in the China National Convention Center. Details of when construction will start and how the investment will be distributed were not made public.
The local government touted Fangchenggang as an important border city between China and Vietnam for its easy access to other Association of Southeast Asian Nations (ASEAN) countries.
“We have the geographic edge to launch this kind of international industry base,” Xuan Peijun, Secretary of Fangchenggang Municipal Party Committee, told the Global Times, adding that “the city has the potential to become one of the world’s largest movie industry bases, given that the city is already positioned as a mining and tourism flagship.”
http://china-screen-news.com/2011/06/guangxi-plans-a-new-15-4-billion-movie-industry-base-for-china-southeast-asia-cultural-exchange/
Jilin, Shandong and Guangxi, and has total annual production capacity of 972.5 million .... Japan across the Pacific Ocean, as well as the Asia Pacific Cable Network 2, ... analysis firm Displaybank forecast that the $7.5 billion market for large-size ...
http://www.screendigest.com/reports/2010920a/10_10_china_cable_television/view.html
Good news! YOU On Demand Signs Guangxi Cable For Video On Demand In China
NEW YORK, Jan. 7, 2013 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand") China's leading national Pay-Per-View (PPV) and Video On Demand (VOD) platform, has signed a carriage agreement with cable operator Guangxi Cable, the sole cable operator in the southern province of Guangxi. Guangxi Cable provides service to five million cable homes.
Starting in January, Guangxi Cable's VOD-ready customers will be able to enjoy YOU On Demand's Transactional Video On Demand (TVOD) and Subscription Video On Demand (SVOD) offerings. These include YOU On Demand's "YOU Cinema On Demand" SVOD service that makes available hundreds of hours of Hollywood films with new titles added every week, as well as, YOU On Demand's "CHC Cinema On Demand" service, which provides the ability to choose among hundreds of award-winning domestic movies each month.
"It's very exciting to be a part of Guangxi Cable's programming and to have them carry our service," said Shane McMahon, Chairman and CEO of YOU On Demand. "With the addition of Guangxi Cable to our family of cable operators, YOU On Demand is off to a great start in reaching our year-end 2013 goal of 30 million cable homes passed."
YOU On Demand currently has content deals in place with many of Hollywood's top studios including Warner Bros. Entertainment, Disney Media Distribution, Paramount Pictures, NBCUniversal, Lionsgate, Miramax, and Magnolia Pictures, as well as a broad selection of the best content from independent and Chinese filmmakers.
About YOU On Demand Holdings, Inc.
YOU On Demand is the leading national Pay-Per-View and Video On Demand platform in China. The Company offers high quality premium content to customers across China through its Near Video On Demand (NVOD), Video On Demand (VOD) and Subscription Video On Demand (SVOD) services. The Company consists of a portfolio of businesses that include alliances with leading media operators, comprehensive end-to-end content delivery, an exclusive billing solution, governmental partnerships and approvals, and value added services.
YOU On Demand has secured strategic partnerships with the largest media entities in China, and has a highly experienced management team with a strong background in Cable, Television, Media and Telecom. The company is headquartered in New York, NY, with its China headquarters in Beijing. For more information, visit http://www.yod.com.
Very interesting to read ! Ericsson and YOU On Demand are deploying the first secure internet protocol delivery system of digital content to cable operators throughout China. The system ensures that content owners can be confident that their digital assets are protected at every stage of the delivery process and that cable operators have access to the premium Hollywood and domestic content their subscribers want. Content is packaged, processed and delivered by Ericsson content management systems. YOU On Demand expects that its VOD and PPV services will be available to 3 million subscribers by the end of the year.
"Working with Ericsson, YOU On Demand can enable China's cable operators to give consumers the best TV experience with premium content, enhanced sound and high definition picture quality, all in the comfort of their own home," said Shane McMahon, Chairman and CEO of YOU On Demand.
Over 50 percent of global on-demand content assets are processed by Ericsson solutions. YOU On Demand joins a list of companies using Ericsson's content management solutions that includes HBO, Showtime and Starz.
"This venture relies on Ericsson's experience and ability to help operators deliver TV services with the highest consumer value, operational excellence and profitable business performance," said Mats Olsson, Head of China & North East Asia, Ericsson. "Our long-established reputation for delivering next-generation TV experiences in China has seen YOU On Demand place their trust in us and we are pleased to be part of this well-timed and exciting project."
YOU On Demand will utilize Ericsson's MediaPath secure content delivery system and Xport Producer comprehensive storage encoding solution to implement its VOD and PPV platform. The platform is the first comprehensive end-to-end system of its kind for the largest television market in the world.
Notes to editors:
About YOU On Demand Holdings, Inc. YOU On Demand is the first national Pay-Per-View and Video On Demand platform in China. The Company plans to offer high quality premium content to customers across China through its Near Video On Demand (NVOD), Video On Demand (VOD) and Subscription Video On Demand (SVOD) services. The Company consists of a portfolio of businesses that include alliances with leading media operators, comprehensive end-to-end content delivery, an exclusive billing solution, governmental partnerships and approvals, and value added services. YOU On Demand has secured strategic partnerships with the largest media entities in China, and has a highly experienced management team with a strong background in Cable, Television, Media and Telecom. The company is headquartered in New York, NY, with its China headquarters in Beijing. For more information, visit http://www.yod.com.
Ericsson Video Management Products
Xport Producer by Ericsson
Next Generation MediaPath SCDS by Ericsson
Our multimedia content is available at the broadcast room: www.ericsson.com/broadcast_room
Ericsson is the world's leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company's portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices.
Ericsson is advancing its vision of being the "prime driver in an all-communicating world" through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 90,000 employees generated revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ New York.
www.ericsson.com www.twitter.com/ericssonpress www.facebook.com/technologyforgood www.youtube.com/ericssonpress
CONTACT:
Jason Finkelstein YOU On Demand 212-206-1216 Jason.Finkelstein@yod.com
Stuart Zakim DiGennaro Communications for YOU On Demand 732-754-9051 stuart@digennarony.com
SOURCE YOU On Demand Holdings, Inc.
COPYRIGHT 2011 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2011 Gale, Cengage Learning. All rights reserved.
I am a little shy of 30,000 Shares i have good feeling this is the year for this stock!
Do you have any idea who is selling these bits and pieces of stock notice that lately the past to three days Now?
PROSPECTUS SUMMARY
This summary highlights information about us and the offering contained elsewhere in, or incorporated by reference into, this prospectus supplement and the accompanying prospectus. It is not complete and may not contain all the information that may be important to you. You should carefully read the entire prospectus supplement and the accompanying prospectus, as well as the information incorporated by reference, before making an investment decision, especially the information presented under the heading “Risk Factors” beginning on page S-13 of this prospectus supplement, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2012, and our consolidated financial statements which are incorporated by reference.
Company Overview
We operate in the Chinese media segment, through our Chinese subsidiaries and variable interest entities, or VIEs, (1) a business which provides integrated value-added service solutions for the delivery of pay-per-view, or PPV, video on demand, VOD, and enhanced premium content for cable providers, (2) a cable broadband business based in the Jinan region of China and (3) a television program guide, newspaper and magazine publishing business based in the Shandong region of China.
Through our VIE, Sinotop, and it’s 80% owned operating joint venture Zhong Hai Video, we provide integrated value-added service solutions for the delivery of PPV, VOD, and enhanced premium content for cable providers. Zhong Hai Video's revenue will be derived primarily from a VOD model, consisting of a fee to view movies, popular titles and live events.
Through our VIE, Jinan Broadband, we provide cable and wireless broadband services, principally internet services, Internet Protocol Point wholesale services, related network equipment rental and sales, and fiber network construction and maintenance. Jinan Broadband’s revenue consists primarily of sales to our PRC-based internet consumers, cable modem consumers, business customers and other internet and cable services.
Through our 30% owned Shandong Media, we operate our publishing business, which includes the distribution of periodicals, the publication of advertising, the organization of public relations events, the provision of information related services, copyright transactions, the production of audio and video products, and the provision of audio value added communication services. Shandong Media's revenue consists primarily of sales of publications and advertising revenues. As discussed in Note 5 to the unaudited consolidated financial statements, the Company has deconsolidated the net assets of Shandong Media as of July 1, 2012 and accounts for the remaining 30% interest in Shandong Media by the equity method.
Our Pay-Per-View and Video On Demand Business
Through the acquisition of Sinotop Hong Kong and its VIE Sinotop Beijing, we have an exclusive 20-year joint venture with CCTV-6's China Home Cinema, or CHC, to become the first national Pay-Per-View (PPV) and Video On Demand (VOD) platform in China. We operate under a national government license obtained by CHC to serve as their exclusive agent in the PRC, for operating and marketing PPV, Transactional Video On Demand, or TVOD, Subscription Video On Demand, or SVOD, Near Video On Demand, or NVOD, and related Value-Added Services, or VAS. Our platform and services include content and distribution agreements, governmental partnerships and approvals, infrastructure, encoding and transcoding, metadata management, marketing services, research and data. Our core revenues will be generated from both a one-time fee for our TVOD services, as well as a monthly fee for our SVOD services.
We are China’s most sophisticated aggregator of VOD content, offering a suite of services modeled after the most successful VOD platforms in the world. Led by extensive industry experience and comprehensive analyses of consumer viewing habits, our TVOD and SVOD services are designed to maximize buys and revenue. We currently provide cable television household subscribers the ability to view the best Hollywood titles, high-grossing domestic content and other popular movies, such as The Avengers. Our platforms provide viewers with access to the top selection of quality content during the earliest possible VOD windows for the best viewing experience with full DVD-like control. Top tiles are available in high definition with select content also available in 3D. We will also offer free content including trailers, behind-the-scenes footage, celebrity interviews and more.
We currently have distribution agreements with Warner Bros. Entertainment, Disney Media Distribution, Paramount Pictures, NBCUniversal, Miramax, Lionsgate, Magnolia Pictures, Screen Media Ventures, Gravitas Ventures, 3Net, Digitrax Entertainment LLC, K2 Communications and Film Buff. We currently reach 13.2 million cable television homes, having distribution agreements with Jinan Cable, Cixi Cable, Jilin Cable, Dalian Tiantu Cable and Hubei Cable. In addition, we plan to expand our content offering to include YOU 3D, YOU TV, YOU Kids, YOU Sports, YOU Music, YOU Karaoke and YOU Events. Currently, there is no other provider offering VOD or SVOD services on a national level in China.
S - 2
Table of Contents
China is the largest cable TV market in the world with 400 million total TV households and 202 million cable TV households with an untapped potential for premium content. China expects to be twice the size of the United States in terms of digital households by 2015. With the increase of middle class income and greater disposable budgets, we anticipate seeing greater demand for entertainment, including movies, concerts and sporting events. This projection has been reflected through box office receipts, up 29% in 2011 from 2010 according to China’s Film Bureau, and the exploding sales of flat screen televisions, with total television shipments to China increasing 19% in 2011, and 90% of all current televisions in the region being LCD, according to NDP Display Research. Premium content remains scarce in the market and we believe the key opportunity for growth is in China’s next generation broadcasting initiatives, which is expected to power 200 million digital cable customers with high definition television, internet and 2-way interactive service capability by 2020, according to the Chinese State Administration of Radio, Film and Television.
Our Broadband Business
Jinan Guangdian Jia He Digital Television Co., Ltd., or Jinan Parent, the entity that sold 51% of its cable broadband business to us, is an emerging cable TV consolidator and operator in China’s cable broadband market. Jinan Broadband, which is 49% owned by Jinan Parent and 51% owned by Beijing China Broadband Network Technology Co., Ltd., or wholly foreign owned entity, or WFOE, is operated in accordance with a cooperation agreement and one or more operating agreements, including an exclusive service agreement. Jinan Broadband operates out of its base in Shandong where it has an exclusive cable broadband deployment partnership and exclusive service agreement with Jinan Radio & Television Network, or Networks Center, the only cable TV operator in Jinan. Pursuant to the exclusive service agreement, Jinan Broadband, Jinan Parent and Networks Center cooperate and provide each other with technical services related to their respective broadband, cable and internet content-based businesses.
We believe that we compete on the basis of more favorable rates and our ability to provide a variety of interactive media services through a partnership with Networks Center. Finally, cable enjoys a high household penetration rate in urban areas and our internet service is competitively fast and reliable. (See www.jinan.gov.cn ). The broadband internet business in China has limited competition, since we were granted an exclusive service agreement with Jinan Parent which provide us the right and license to operate via cable and use of the cable resources in the Jinan region.
Our Publishing Business
Shandong Media, our print-based media business, is owned 30% by the Shandong Newspaper Entities (i.e., by Shandong Broadcast & TV Weekly Press, or Shandong Broadcast, and Modern Movie & TV Biweekly Press, or Modern Movie) and 70% owned by Jinan Zhong Kuan Dian Guang Information Technology Co., Ltd., or Jinan Zhong Kuan, an entity controlled by us through a series of contractual arrangements. Through Shandong Media, our print-based media business includes a television programming guide publication, the distribution of periodicals, the publication of advertising, the organization of public relations events, the provision of information related services, copyright transactions, the production of audio and video products, and the provision of audio value added communication services. Our cooperation agreement with Shandong Broadcast and Modern Movie also provides that these businesses will be operated primarily by employees contracted to Shandong Media through secondment by Shandong Broadcast and Modern Movie.
In addition to being the exclusive provincial television programming guide publishing group in the Shandong province, Shandong Media has:
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a combined subscription basis of approximately 225,000 subscribers; and
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five publishing assets focused on different entertainment readership segments.
Following is a description of some of our publications:
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Shandong Broadcast and TV Weekly (Newspaper). Established in 1954, Shandong Broadcast & TV Weekly is a provincial TV programming guide & general entertainment newspaper. Published on a weekly basis, it has maintained 85,000 average copies in circulation per week. Target readership of Shandong Broadcast & TV Weekly consists primarily of middle-age to senior readers in the Shandong region.
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TV Weekly Magazine. TV Weekly Magazine is a national PRC magazine title, ranked among China’s top 5 TV Guide & general entertainment magazines. Published on a weekly basis, this magazine’s average circulation is 40,000 copies in the Shandong region. The unique national publishing title encourages TV Weekly to expand its target market to neighboring regions in northern China.
Looks like we got a good shot at it before anybody else steps in this Space,you on demand can be a buyout candidate!
All I knows 2013 is going to be a good year!Holding on tight!