Xunlei to Buy Rights to 95% of 2013 Film Releases
Securities Times, 11/26/12
Liu Feng, chief planning officer for Chinese online P2P video service provider, download accelerator software developer, and online game operator Xunlei, said that the company will acquire rights to 95% of the 389 films that will receive cinematic release in China in 2013. Xunlei's online P2P video brand Xunlei Kankan will earmark RMB 500 mln for online HD cinema industry chain marketing.
Xunlei Kankan will focus its efforts on the film industry chain, Liu said, whereas rivals Youku-Tudou (NYSE: YOKU) and Tencent (0700.HK) Video are focused more on acquiring rights to television serials. After acquiring exclusive rights to film titles, Xunlei Kankan will exchange content with other video sites to lower cost pressures.
At present, Liu said, Xunlei Kankan has a total of more than 50,000 hours of HD video content, and expects Xunlei Kankan's 2012 revenues to account for more than 70% of Xunlei's total revenues.
Editor's Note: For more information on this topic, please see "Rumor: Xunlei to Spin Off Online Video Business for IPO," MD 11/23/12 issue.
Sending
