Acquisition of the entire interest in Youline Technology, an integrated wireless value-added channel, enables entrance into digital entertainment media
HONG KONG, Dec. 21 /PRNewswire-Asia/ -- ChinaVision Media Group Limited ("ChinaVision" or the "Group", stock code: 1060) announced that it has signed agreement with the People's Daily Online (http://www.people.com.cn ) under The People's Daily to set up a joint venture company which will operate mobile TV business in China and also acquired all shares of Youline Technology Company, which will allow it to become a value-added business partner with the leading mobile telecommunication operators in China. This will also provide the Group with a high quality and stable multi-billing network and powerful mobile channel resources for promotion, enabling it to quickly integrate visual entertainment media resources and introduce new digital products to around 700 million mobile users in China.
Joint Venture with the People's Daily Online
China has strict licensing requirements for mobile TV operation and so far only seven operators have been licensed, namely CCTV, China Radio International, China National Radio, Xinhua News Agency, Information Office of State Council, Shanghai Media and Entertainment Group and The People's Daily. In April this year, SARFT granted a right to the People's Daily to build a mobile audio and visual content service platform and provide relative services and the People's Daily Online was subsequently authorized to operate the business and to connect with mobile TV operators. The partnership with the People's Daily Online, the largest official website in China, will give ChinaVision an enlarged market and immense development potential.
There are currently approximately 700 million mobile handset users in China. As at the end of 2008, the three major telecom operators in China together made revenue of RMB813.9 billion. The new business of IDC (mobile TV business included) for example grew 40% year-on-year to reach RMB5 billion. According to Mr. Zhou Jiang Ming, dean of the China Mobile Institute, mobile handsets are laden with development potential, and with China boasting the highest mobile service usage volume in the world, and with the launching the 3G network, mobile TV fans have much to look forward to. 3G is the best for viewing video broadcast and, when problems with bandwidth, transmission speed and the cost are solved, the promises of mobile TV will be realized. These are core reasons underscoring the ChinaVision and People's Daily Online partnership and, for ChinaVision, boosts to its core competitiveness."
The People's Daily Online operates under the People's Daily, which is among the top 10 newspapers in the world. It is a large online news information publication platform, the largest integrated online media in China and one of the largest in the world. It is respected for its authority and has a large user base. On 20 June 2008, it was used by President Hu Jintao to interact with the public and President Hu said the People's Daily Online was among the websites of his choice. The online platform is also a base for the People's Daily to enter into new media business such as mobile TV. Its choice to partner with ChinaVision represented its appreciation of the Group's capital strength and abundant visual entertainment and traditional media resources.
About ChinaVision Media Group Limited (SEHK: 1060)
ChinaVision Media Group Limited (previously known as Shanghai Allied Cement Limited) is listed on both The Stock Exchange of Hong Kong Limited (stock code: 1060) and the Singapore Exchange Securities Trading Limited (stock code: S91). The Group is principally engaged in media-related businesses and movie production. Mr. Dong Ping, Chairman, is the founder of Asian Union Film and Media Limited, which was among the first batch of Chinese corporations to invest in movies. Mr. Dong is the producer of "Crouching Tiger Hidden Dragon," the Oscar-winning film in the Foreign Language Film category. He is also the producer and co-producer of "Peacock," which received Berlin's Jury Grand Prix Silver Bear. Over 30 movies and more than a thousand episodes of various influential TV drama series produced by Mr. Dong had earned a number of industry recognitions. Meanwhile, "The Travel Channel," a professional channel jointly operated by the Group and Hainan Broadcast Television Station, was highly recognised. Mr. Dong Ping has unparalleled experience in the investment and management of media enterprises. Chaired by Mr. Dong, the Group will expand to investing in and operating Chinese media, advertisement, satellite TV, television and film production, it will also tap the multi-media business such as the plane- and network-media as well as gaming media. The Group also participates in cement and clinker distribution business.
