Wecast Network, Inc. is a corporation formed in the State of Nevada on October 19, 2004.
Wecast Network, formerly YOU On Demand Holdings, Inc., is a premium content Video On Demand (“VOD”) service provider with primary operations in the People’s Republic of China. Wecast Network, Inc. was incorporated in the State of Nevada on October 19, 2004.
Wecast Network, through its subsidiaries and variable interest entity, provides premium content and integrated value-added service solutions for the delivery of VOD and paid video programming to digital cable providers, Internet Protocol Television (“IPTV”) providers, Over-the-Top (“OTT”) streaming providers, mobile manufacturers and operators, as well as direct customers. By leveraging and optimizing its existing operations, we have positioned ourselves to evolve into a mobile-driven, “new media” platform for both enterprises and consumers.
We launched our VOD service through acquisition of YOD Hong Kong, formerly Sinotop Group Limited, in July 30, 2010. Through a series of contractual arrangements, YOD WFOE, the subsidiary of YOD Hong Kong, controls Sinotop Beijing, a corporation established in the PRC. Sinotop Beijing is the 80% owner of Zhong Hai Video, the entity though which we provide: 1) integrated value-added business-to-business (“B2B”) service solutions for the delivery of VOD and enhanced premium content for digital cable; 2) integrated value-added business-to-business-to-customer (“B2B2C”) service solutions for the delivery of VOD and enhanced premium content for IPTV and OTT providers and; 3) direct to user, or B2C, mobile video service apps. As a result of the contractual arrangements with Sinotop Beijing, we have the right to control management decisions and direct the economic activities that most significantly impact Sinotop Beijing and Zhong Hai Video, and, accordingly, under generally accepted accounting principles in the United States (“U.S. GAAP”), we consolidate these operating entities in our consolidated financial statements.
Our OTT, Mobile App, IPTV and Digital Cable VOD Businesses
Wecast Network is a leading multi-platform entertainment company delivering premium content, including leading Hollywood and China-produced movie titles as well as children’s programming, to customers’ mobile and TV screens across China via Subscription Video On Demand (“SVOD”) and Transactional Video On Demand (“TVOD”) paid content services. The Company’s current distribution partners include digital cable operators, IPTV operators, OTT streaming operators and mobile smartphone manufacturers and operators. Our subscribers can watch our content anytime, anywhere and have full DVD-like control as they can play, pause and resume watching, all without commercial and advertising interruptions. Our core revenues are being generated from both minimum guarantee payments and revenue sharing arrangements with our distribution partners as well as subscription or transactional fees from our subscribers.
We have distribution agreements with several OTT, IPTV and mobile distributors, manufacturers and operators. In 2015, the YOU Cinema movie subscription service made its commercial debut on the Xiaomi OTT set-top box as part of YOU On Demand’s previously announced distribution deal with China Network Television's (“CNTV”) subsidiary, Future TV Co. Ltd. (the official online division of Chinese national public broadcaster China Central Television [“CCTV”]). Other distribution partners of ours include: Huawei, a leading global information and communications technology solutions provider and one of the largest global smartphone manufacturers; Dr. Peng Telecom and Media Group, Ltd and its OTT box, the Domy Box; Southern Media Corporation’s 3GTV mobile video platform which currently serves 6 million subscribers through China Mobile, China Unicom and China Telecom in Guangdong, a province which has the largest mobile service and movie box office in China.
Specifically, for digital cable, through the acquisition of YOD Hong Kong and its VIE, Sinotop Beijing, Wecast Network has an exclusive 20-year joint venture (approximately 15 years remaining) with CCTV-6's China Home Cinema (“CHC”), making us the first national VOD platform in China. We operate under a national government license obtained by CHC to serve as their exclusive agent in the PRC for operating and marketing TVOD, SVOD, Near Video On Demand (“NVOD”) and related Value-Added Services (“VAS”).
Wecast Network has and continues to license increasing amounts of entertainment and educational content that enables our subscribers to enjoy premium and diverse entertainment directly on their mobile and TV screens. We have content agreements with Disney Media Distribution, Paramount Pictures, Twentieth Century Fox Television Distribution, NBC Universal, Miramax Films, Lionsgate, Screen Media Ventures, among other independent studios.