PPS.TV has announced details of its third round financing which was completed before the Beijing Olympic Games. LB Investment led the investment totaling around US$20 million, followed by Ceyuan Ventures and Qiming Venture Partners.
LB is a strategic investment company affiliated to LG Electronics that currently manages 14 funds. The leading investing side LB China Fund was established mainly for fast growing Chinese companies in August 2007.
Wang Chin, Chief Investment Officer of LB said, “Ever developing stages of online services application markets such as e-mail, portals, searching, instant messaging, online games, community and online shopping have turned Chinese youngsters into an e-generation, and consequently online TV is bound to become one of the biggest highlights of Internet applications.”
As an investor, Wang Chin is concerned most about how fast the profit mode of advertising revenue is accepted by the market. However, PPS has completed the establishment of its technical platform and user base, a major highlight that attracted LB, by “their leading technology, efficient teamwork, fast-growing capability, large user base and long-term strategic objectives.”
Vincent Xu, president of PPS.TV, disclosed that there are three main reasons for choosing LB. Firstly, supported by LG, LB has provided higher added value, which is reflected not only on the access to advertising resources, but also on the ability to provide more technical support. Secondly, LB Fund is highly efficient in investment decision-making. It only took about 2 months from the initial agreement between the two parties to the funds’ arrival in PPS’s bank account.
Thirdly, LB accepts the current management mechanism, so that the core founding team of PPS.TV can retain the original operation mode of the company.
Gan JianPing, Managing Director of Qiming Venture Partners expressed that they would have added their investment to meet PPS’s financing needs, despite the involvement of these two venture capitals.
As an investor, Gan JianPing showed his generous appreciation of the PPS team, “Team performance has greatly excelled our expectation, and PPS has been a leader in the industry in terms of numbers of registered users, spontaneous on-line users and technology.”
According to the August statistics in iResearch’s post Olympic survey, multiple iUser Tracker statistics of PPS such as average active daily users, average daily viewing time, average daily software downloads, and total monthly viewing time continue to rise and show a rapid growth trend. The statistics also show that the average daily users of PPS’s software has broken 7 million in August, out performing its two main competitors PPLive with 4 million users and UUSee with 2.7 million users, and takes over 50% of the user based market share. Obviously, PPS has firmly consolidated its leadership in the online TV industry. (Data source: iUserTracker 2008.10, iResearch Inc.)
In December 2005, PPS.TV obtained the first round of financing US$1 million from Ceyuan Ventures and in March 2007 obtained the second phase of joint financing US$10 million from Ceyuan Ventures and Qiming Venture Partners.
PPS , officially established in January of 2006, is the leading online TV in the world with the largest user base, contributing to a monthly view time of over 60 billion minutes. It currently provides 6,000 sets of channel programs to ten million daily active users, or over 100 million monthly users. Leveraging the most competitive products and online video techniques and experience, PPS provides internet users with a comprehensive one-stop online video service.
PPS currently offers video encyclopedia, video showcase, and online community service to the worldwide Chinese viewer community. PPS partners with top media groups like CCTV, ESPN, SMG and Ifeng.com (Phoenix TV) to broadcast most recent and ‘trendy’ contents, including major sporting events like the 15th Asian Games Doha 2006, the 2006 FIFA World Cup, and various major NBA games. In June 2008, PPS was the first to be authorized the official right to broadcast the 2008 Beijing Olympic Games online, as the premier partner of CCTV.COM, the official website of the Games.