By Evan DeSimone
Chinese VOD service provider YOU On Demand has inked a deal with China Network Television’s internet protocol TV (IPTV) operating entity Ai Shang Media to bring Hollywood movies to all IPTV users in China.
China’s currently regulatory system designates China Network Television as the sole national broadcaster in control of the country’s IPTV platforms. Each province has a regional provider that offers both live and on-demand IPTV content to consumers with all of those deals flowing through China Network Television. The deal with YOU On Demand will allow the VOD provider to distribute its licensed catalog of Hollywood films on IPTV platforms nationwide.
The deal is favorable to YOU On Demand, giving the VOD provider the first right of refusal on all movie content distribution. Any content that CNTV IPTV looks to distribute will be sourced first from YOU On Demand.
“Aligning YOD’s content alongside such a strong, centralized national platform, will help strengthen both the YOD brand as well as its reach,” said YOD CEO Weicheng Liu in a statement. “First, it makes YOU On Demand the exclusive gatekeeper of Hollywood movie content to potentially 40-plus million IPTV users. Second, it provides YOD, in addition to the typical SVOD and TVOD revenue split, a separate and additional recurring revenue that will be tied to its heavy involvement in CHINA IPTV operations and marketing and how those engines drive CHINA IPTV growth and expansion.”
China’s streaming video space has rapidly accelerated in recent months as a wave of internal consolidation has struck the nation’s diverse array of streaming platforms, bringing many under the sway of local internet giants. The infusion of capital from these acquisitions has fueled a growing content war with platforms racing to license Hollywood films and international sports programming to satisfy growing local demand.