BEIJING, July 17 /Xinhua-PRNewswire/ -- Asia Premium Television, Inc. (Bulletin Board: ATVG), a China-based mobile community and marketing company, today provided an update on its business strategy for fiscal 2008/2009. The Company’s fiscal year end is September 30.
Business Strategy for Fiscal 2008/2009
In fiscal 2008 (which ends September 30, 2008), ATVG plans to complete the roll-out of its mobile top-up network in Jiangxi Province and then leverage the Jiangxi operating base to build niche buyers’ communities for select demographics-namely, urban females, businessmen, youth and senior citizens. The Company plans to service its buyers’ groups with attractive shopping card products/services under a unified “MobiCard” brand name and eventually generate scalable revenue through commerce and database marketing.
Enhanced Business Organization
ATVG will reorganize its existing business operations into a (A) Payment Communities Group and a (B) Marketing Services Group in order to accommodate its enhanced business strategy. Each business group plans to develop its operations according to a four-stage development plan.
(A) Payment Communities Group. This group will be responsible for building loyal groups of consumers through “Mobi”-branded payment and shopping products/services.
Stage 1 (Q4, FY2008): Offer mobile top-up services (“Mobi Top-Up”) in Jiangxi Province, where the Company serves as a technology supplier and platform operator to a local operating partner; begin generating revenue through the resale of mobile minutes to consumers as early as late August; expand retail network to 20,000 sales outlets by the end of 2008.
Stage 2 (FY2009): Distribute Mobi-branded discount labels (“MobiCard Labels”) through the Jiangxi Province retail network; MobiCard labels will be branded stickers that can be applied to any accessories such as cell phones and key chains; the labels will offer consumers shopping discounts/rewards at select merchants; they will contain unique bar code technology so that the Company can collect data on users’ shopping activity.
The Company also plans to offer MobiGo mobile phone software ("Mobigo Software") as a companion product to MobiCard labels. MobiGo Software, once installed on users’ handsets, will allow users to access personal media and shopping discount info on their cell phones. Mobigo software will be available for free download at MobiCard Label distribution points. Eventually, the Company plans to expand its distribution network nationwide through partnered channels.
Stage 3 (FY2009): Distribute Mobi-branded debit cards (“MobiCards”), offering the same discounts as MobiCard labels, through the Company’s Jiangxi province top-up network. Eventually offer these cards as stored value cards (a.k.a. prepay credit cards)/credit cards, and expand distribution nationwide through partnered channels.
Stage 4 (FY2009-10): Leverage the company’s payment communities, built upon various MobiCard shopping products, to sell goods to consumers; introduce a group purchase model that allows MobiCard members to obtain preferential discounts by joining a consortium of similar buyers.
(B) Marketing Services Group. This group will be responsible for developing marketing services that connect corporate clients with their target consumers belonging to the Mobi buyers’ communities.
Stage 1 (FY2008): Provide traditional marketing services to corporate clients, leveraging the Company’s historical experience/expertise in brand agency and marketing consulting.
Stage 2 (FY2009): Provide mobile-based marketing services to corporate clients, leveraging the Company’s own Mobi mobile consumer base and partnered mobile consumer communities.
Stage 3 (FY2009): Offer database marketing solutions to corporate clients by analyzing transactional data collected of the Company’s Mobi buyers’ communities (see above).
Stage 4 (FY2009): Offer integrated marketing services based on the marketing offerings described above; expand client base nationwide.
ATVG’s partners for developing its Mobi-branded products and services are expected to include leading Chinese banks for debit/stored value/credit card issuance; China Union Pay/Mastercard for financial settlement; leading department store chains and brand stores for shopping discounts; leading card technology providers for product development, service and support; and targeted consumer companies for Mobi marketing and promotion.
Revenue sources are expected to include: (a) Resale of mobile top-up minutes to consumers; (b) Sales of MobiCard Labels and MobiCards to consumers; (c) Interchange transactional commissions on all MobiCard usage (paid to the ATVG by its partnered banks); and (d) Marketing services.
Mr. Xing Jing, Chairman and CEO of Asia Premium Television Group, Inc. commented, "We believe our enhanced strategy of building niche buyers’ communities for different demographics, and servicing these communities with unique shopping products will lead us to scalable commerce/database marketing revenue over time. We plan to roll-out our mobile top up services in the fourth fiscal quarter in order to build revenues, and then to develop Mobi-branded products/services beginning with the urban female consumer segment. We appreciate our shareholders’ support as we take this exciting new step in the development of our company."
Investors are cautioned that certain statements contained in this are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects," and similar expressions. In addition, any statement concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future VitalTrust actions, which may be provided by management, are also forward-looking statements as defined by the act. These statements are not guarantees of future performance.
