Beijing :Charm Communications Inc., a leading advertising agency in China, today announced that it has signed a cooperation agreement to establish a joint venture with Wasu Digital Group (“Wasu”). Wasu is China’s largest operator and digital content provider for cable TV, 3G mobile TV and broadband TV and a supplier of IPTV services. Wasu is also one of three national operators, alongside China Central Television (“CCTV”) and Shanghai Media Group (“SMG”), to receive licenses to operate across IPTV, 3G mobile TV and broadband TV networks as part of China’s three-network convergence.
The joint venture will be 49% owned by Charm and 51% owned by Wasu and will have the right to operate all advertising-related businesses across Wasu’s three-network platform for 20 years. The joint venture, with Charm as its advertising agency, will seek to develop and set the advertising industry standards on these new media network platforms, including the development of advertising products, product pricing, sales strategy, promotional materials as well as the development of advertising sales and agency policies.
“With the implementation of China’s three-network convergence plan, China’s digital media revolution including IPTV, 3G mobile TV, and broadband TV is at an inflection point in terms of technology development, content and advertising,” commented Mr. Qiang Cao, chairman of Wasu Digital Group. “As a pioneer in the development of new digital media, Wasu has grown into China’s largest operator and digital content provider for cable TV, 3G mobile TV and broadband TV. As one of only three operators to have been granted the National Integrated Operation License, Wasu is at the forefront of the integration of mobile networks, cable networks and broadband networks.”
“Charm has 16 years’ experience in the TV advertising market and well established media agency and operations capabilities,” Mr. Cao continued. “Wasu looks forward to leveraging Charm’s in-depth understanding of clients, professional capabilities and expertise to take advantage of the increasing focus on new TV media that will come with three-network integration.”
Mr. He Dang, founder, chairman and CEO of Charm commented, “We are seeing rapid progress towards three-network integration and we believe that this significant step forward for the industry will have a profound impact on TV, internet and mobile media. TV media is undergoing a transition from the broadcasting era into the on-demand era and our clients are undertaking ever more extensive TV media marketing campaigns and utilizing a wider variety of advertising products.”
“As China’s three-network convergence ramps up, this joint venture will leverage on Charm’s advertising strengths and pioneer many of the industry standards in this fast-growing new media space,” Mr. Dang continued.