YOD, Dr. Peng Group Expand Partnership With Bundled Service
Dr. Peng Group to provide 1-year or 2-years of YOU Hollywood service to new purchasers of Domy OTT Boxes and Smart TVs.
YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or "YOD"), a leading Video On Demand ("VOD") service provider in China delivering Hollywood movies and premium content to mobile and TV screens, announced today that based on the collaborative success of its original partnership (from August 2014) with Beijing Hiveview Technology Co, Ltd. ("Hiveview"), a wholly owned subsidiary of Dr. Peng Telecom and Media Group, Ltd. (publicly listed on the Shanghai Stock Exchange) ("Dr. Peng Group"), both companies have agreed to expand the existing distribution agreement to closer integrate YOU On Demand's services with Dr. Peng Group's branded consumer products and broadband services.
Dr. Peng Group is the largest private telecommunications operating company in China, with broadband coverage reaching approximately 9 million homes across the country. Hiveview is the operating entity of the Domy line of products, and is responsible for development, production, operations, sales and marketing of the Domy Over-the-Top (OTT) set-top box ("Domy Box") and the Domy Smart TV.
Under the expanded collaboration and special promotion, Dr Peng Group will provide 1-year or 2-years of automatically activated and bundled YOU Hollywood service, to both the first 2 million purchasers of Dr. Peng's new Domy Box and the first 200,000 purchasers of the new Domy Smart TV, the latter of which was initially launched in April 2015. The fee for the YOU Hollywood service will be built into and included in the sale price of each individual piece of hardware. Upon the sale of a device, YOU On Demand will receive payment from Dr. Peng Group.
This latest collaborative effort between YOU On Demand and Dr. Peng Group is officially being launched later this month on both hardware devices. These new consumer products, coupled with Dr. Peng's superior high-speed closed network broadband service, will allow users to seamlessly stream HD quality YOU Hollywood content.
Hiveview is anticipating approximately 3 million Domy Box users and 500,000 Domy Smart TV users by the end of 2015. According to Hiveview's operational data, there are currently over 2 million users of the Domy Box since its launch in March 2014, amongst which 40% of whom are considered "active" on a daily basis. An average Domy Box user watches close to 4 hours of content on a daily basis.
The promotional launch of this new collaboration will initially target over 108 cities in China, including Beijing, Tianjing, Shanghai, Guangzhou,Shenzhen and other major regions across China.
The newest Domy products, coupled with the YOU Hollywood service, will be heavily marketed through multiple channels including: Dr. Peng's existing e-commerce platform and website, Dr. Peng Group's broadband service centers located in key locations in all 108 targeted cities including prime residential areas, both YOU On Demand's and Dr. Peng's official company Weibo and WeChat platforms, as well as other sales channels and social media outlets.
CEO Weicheng Liu, commenting on the partnership, stated, "We are thrilled about the strong working relationship that continues to develop between YOU On Demand, Dr Peng Group and its subsidiary Hiveview. With the Domy Box establishing itself as a top device contender in the OTT space, coupled with the introduction of the new Domy Smart TV that is expected to quickly gain a strong foothold in the market, we are excited that these innovative products, which feature the YOU Hollywood HD service, will allow for Chinese video consumers to experience our extensive content offering off of Dr. Peng Group's advanced closed network system which boasts 100Mbps bandwidth to the home. Penetration of our services on both Dr Peng's continually expanding hardware lines, in addition to the 108 cities that will experience this promotional launch, is another strong step for YOU On Demand as the company continues to pursue its "anytime and anywhere" strategy of both viewing and delivering premium content.
Source: You On Demand