Phoenix New Media: Mobile Video Revenues Booming
Sina Tech, 7/20/10
President Liu Xin has revealed that Phoenix New Media plans to IPO in the third quarter of 2011, possibly on a US stock exchange.
Liu said that monthly revenue from the mobile video business of Phoenix New Media's internet portal iFeng had grown from RMB 100,000 in January to RMB 10 mln by May. Liu said the explosive growth was attributable to the industry trend of growth in 3G video, as well as close cooperation with China Mobile (NYSE: CHL; 0941.HK). Liu added that the company had also cooperated on mobile video with handset vendors including Nokia and Lenovo (0992.HK), which contributed to the growth, but Liu declined to reveal further details, citing trade secrets.
Phoenix New Media has released mobile video client applications for the iPhone and other handsets. Liu said that the iPhone client has not generated any revenue but is available free of charge. Phoenix New Media may offer premium fee-based editions of Phoenix Weekly magazine for the iPhone and iPad, while video content will remain free in order to help grow users, and focus on an advertising-based business model in the future.
Liu said the company's current selling points are its position as a high-end portal and its wireless business, with video services expected to become a third selling point. Liu added that in the future Phoenix New Media will move towards integrating its cable TV, mobile and internet video businesses.
Keywords: overseas listing Liu Xin China Mobile Internet IPO portal revenue wireless mobile video business model iFeng Phoenix New Media CHL 0941.HK
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