VisionChina Media Inc. , one of China’s largest out-of-home digital television advertising networks on mass transportation systems, has announced the renewal of an exclusive contract with Beijing Subway to continue operation of the Company’s mobile digital television advertising network on Line 13 and the Batong Line in the city of Beijing. In conjunction with the contract renewal, VisionChina Media also announced that it has finalized a definitive agreement with Beijing Subway to commence operations on Line 5, the Olympic Line (part of Line 8) and Line 10, effective January 1, 2009.
Beginning January 1, 2009, the one-year contract renews VisionChina Media’s exclusive right to operate on Line 13 and the Batong Line. The two lines together feature 1,920 screens inside train cars. VisionChina Media has been operating on Line 13 and the Batong line since 2007.
With the contract renewal and newly established agreements, VisionChina Media now operates a subway network encompassing five out of Beijing’s eight operational subway lines. The Company’s Beijing subway network now features 6,505 screens, which reach an average daily audience of 1.78 million commuters.
“We are thrilled to continue our valuable working relationship with Beijing Subway,” said Limin Li, VisionChina Media’s chairman and chief executive officer. “Our ability to deliver reliable service and appealing content has given us the opportunity to both expand and extend our operations in the capital city as we continue to solidify our position as the leader in Beijing’s mobile TV market.”
Mr. Li continued, “Beijing is in the process of an ambitious subway expansion and much of China’s recently announced economic stimulus package is earmarked for developing transportation infrastructure and mass transportation networks in urban centers nationwide. We are aggressively pursing expansion in all of our most lucrative markets and looking toward these future opportunities for growth. I am confident that our current market leadership will ensure that we are well positioned to benefit as cities across the country build out their own mass transportation networks. Furthermore, our unique access to mass transit passengers gives our network the viewership of China’s rising middle class, the target audience of fast-moving consumer goods advertisers. These are the companies that commit advertising dollars even during economic downturn.”
In addition to the eight lines in operation, Beijing authorities are at work on seven lines currently under construction and ground breaking on another three lines is scheduled to begin in 2009. By 2015, Beijing is expected to boast one of the world’s largest subway systems with approximately 349 miles of rail lines and a capacity of over 9 million passengers daily.
In 2007, Beijing’s population exceeded 16 million people. The city’s nominal GDP was approximately RMB900 billion with an urban disposable income per capita of approximately RMB22,000, a real increase of 11.2% from the previous year. According to CTR Market Research.