Sina Tech, 5/06/11
Li Feng, founder of Beijing-based digital content distributor Netmovie, said today that Netmovie will IPO on a U.S. stock exchange in H2 2011 or H1 2012.
According to Li, Netmovie's primary source of revenue at present is digital distribution, through which it derives revenues from partnerships with telecom operators on distributing content to hotels, theaters, digital stations, and websites. Netmovie reportedly has annual revenues totaling several hundred mln RMB.
As early as 2008, there were reports that Netmovie was preparing to IPO, but the company's plans were put on hold by the global financial crisis.
Netmovie also has a subsidiary, iMovie, dedicated to setting up physical audiovisual centers throughout the country. The iMovie centers distinguish themselves from traditional theaters by offering on-demand viewing of films in small private rooms, similar to those available in karaoke parlors, in which people can watch films with their friends. The Beijing iMovie center opened late last year, and reportedly has typically got between 400 and 500 viewers at any given time, rising to more than 1,000 on weekends. The center is expected to recoup its construction costs in July or August of this year; each center could potentially generate RMB 5 mln to 10 mln in profits annually. According to Li, Netmovie plans to open 20 more iMovie centers this year.