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Re: northenlightsk05 post# 127348

Friday, 08/13/2010 2:16:44 PM

Friday, August 13, 2010 2:16:44 PM

Post# of 173812
CCME - bus operators, which are, I believe, state owned enterprises, will choose the adversting company that the state has annointed. This is CCME - so in the near future they will be the only choice.

Will the monopoly continue? It could well do VISN just renewed their contract for the subway.[1]

"On July 14, 2010, the Company announced the renewal and extension of its exclusive contract with Beijing's subway system, which enables the Company to continue to operate its subway mobile digital television and advertising network in Beijing on an exclusive basis for the next five years."

Assuming they loose their monopoly in 4 years time (or however long it is) While margins would degrade significantly they will have increased the advertising charges which are a fraction of what they could be - think figure was 3 - 5% of what the cost is for advertising on television. Difficult to say exactly but they could well cancel each other out.

rich

[1] http://finance.yahoo.com/news/VisionChina-Media-Inc-prnews-1601565494.html?x=0&.v=101

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