Chinese VOD Service You On Demand Gets $19 Million Investment From C Media
Chinese pay-per-view and VOD service You On Demand announced Monday that mobile video service provider C Media, along with unnamed additional parties, has invested $19 million in the company in exchange for shares of You On Demand's Series E Convertible Preferred Stock.
C Media's stock buy is the second phase of its strategic investment in You On Demand, following a purchase in July 2013 of $4 million shares of You On Demand's Series D Preferred Stock. Altogether, C Media has made a $25 million investment into the VOD company.
Last Thursday, You On Demand revealed that it has added Disney to the list of studios whose content will be offered via its mobile service in the fast-growing China market. The company will also soon phase in Lionsgate titles, which, along with Disney, joins Paramount among studios whose titles will be viewed by Chinese consumers via YOD's mobile app. The company says it will have close to 500 films available -- including new releases and library titles from the studios -- once Lionsgate is added.
Founded in 2004, C Media is a China-based mobile Internet company that produces mobile apps for video, music, movies and targeted marketing. It offers mobile video and related services through the networks of China's state telecommunications operators, including China Mobile, China Unicom and China Telecom.
Commenting on the expansion of his company's investment, Xuesong Song, co-founder and CEO of C Media, said: “The You On Demand team, led by chairman Shane McMahon and CEO Weicheng Liu, continues to make significant progress in building their organization into a world-class, multiplatform entertainment content company. Their recent expansion into mobile, backed by a key distribution agreement with Huawei, underscores that the company remains uniquely positioned to capitalize on China’s fast-growing demand for access to quality entertainment anywhere, anytime.”
McMahon said: “We are excited that C Media has elected to significantly expand their strategic investment in You On Demand. In addition to providing us with funding to assist our company at this important inflection point in our corporate evolution, we also look forward to continuing to benefit from Mr. Song’s tremendous experience and success doing business in China, as well as C Media’s mobile industry expertise. With C Media’s ongoing support, we will continue You On Demand’s mission to provide consumers with the best and highest quality entertainment experiences across a wide array of user-friendly platforms.”