NEW YORK, May 3, 2016 /PRNewswire/ -- YOU On Demand
Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or "YOD" or the
"Company"), a premium content Video On Demand service provider in
China evolving into a global,
mobile-driven, consumer management platform for both enterprises
and consumers, announced today that the Company and Frequency
Networks, Inc. ("Frequency Networks"), a cloud-based internet video
service that aggregates and distributes content from thousands of
the world's top providers, including the leading TV and
Multi-Channel Networks, have entered into two agreements: 1. a
binding agreement to form a Joint Venture called Frequency Asia
(the "Frequency Asia JV"), dated April 13,
2016 (the "JV Agreement)" and 2. a Series A Preferred Stock
Purchase Agreement (the "Frequency SPA") for the purchase by
YOD of certain Frequency Series A Preferred Stock.
Frequency Networks, which has global partnerships with leading
cable, satellite and mobile operators reaching over 150 million
subscribers, builds and operates an intelligent content discovery
platform that powers white-labeled video services and applications
for TV and mobile devices.
The Frequency Asia JV
The Frequency Asia JV will have two main operational components
that will provide YOU On Demand, via the JV, the opportunity to
expand both its content offering and distribution footprint.
A. Expanded
Distribution: The JV will provide Frequency's white-labeled
platforms exclusively to the Asian region (including, but not
limited to China, India, Philippines, Malaysia and Vietnam, etc.). Utilizing a B2B
distribution model, the JV will provide customized content services
with multi-screen capability to large and established operators in
the region. Frequency Asia programming will include more than
70,000 channels, organized into 60+ unique vertical
categories. The viewing experience can be further optimized
with personal feeds and channels driven by Frequency Networks'
enhanced metadata format and proprietary recommendation and video
search engine.
B. Global Content
Channels: The JV will develop a stable of made-for-web channels
with brand partners that integrates original and licensed content
for categories including sports, fitness, music, food, tourism,
science and more. These channels will be rolled out globally
across the JV's distribution partners that include major cable,
satellite and mobile operators in the US, Europe and Asia, and via direct-to-consumer apps for iOS,
Android, Amazon Fire and other platforms. The JV will also
integrate and distribute third party e-commerce, social networking
& affiliate marketing capabilities into its branded and
white-labeled service.
In connection with the JV Agreement, Frequency Networks issued
6-year warrants to the Company exercisable at any time into up to
3,000,000 shares of Frequency Preferred Stock.
Series A Preferred Stock Purchase Agreement
In addition to the JV Agreement, the Company entered into the
Frequency SPA for the purchase of $3
million of Series A Preferred Stock (the "Frequency
SPA").
The initial purchase of shares of Frequency Preferred Stock (at
a purchase price of $2 million) was
closed on April 13, 2016 (as
described in YOU On Demand's current report on Form 8-K, filed on
April 19, 2016) and the remaining
purchase of shares of Frequency Preferred Stock (at a purchase
price of $1 million) closed on
April 28, 2016.
YOU On Demand will have an approximate 9% ownership stake in
Frequency Networks, Inc. For a more detailed summary of the
material provisions of the Frequency SPA and the JV Agreement, see
YOU On Demand's current report on Form 8-K, which has been filed
with the U.S. Securities and Exchange Commission ("SEC")
at www.sec.gov.
Bruno Wu, Chairman of YOU On
Demand, commented, "Today's partnership announcement with Frequency
is the first of what I hope to be many business development
initiatives to come that should begin supporting the framework of
our growth plan as well as the pledge to be more regularly and
openly communicative. With Frequency and YOD's now
multi-faceted partnership, YOU On Demand is reimagining, sharpening
and expanding its fundamentals and original scope in three
significant ways: 1. Moving from a pay only model to a pay, free
and commerce content model which will be the cornerstone of
establishing the world's premier mobile-based multimedia, social
networking & e-commerce-enabled network, 2. Broadening its
geographical user base beyond China to become a true global brand and, 3.
Moving from the existing user base of several million to an
addressable user base of several hundred million users
globally by the end of 2016."
Frequency CEO Blair Harrison
stated, "We're thrilled to be partnering with YOU On Demand.
The creation of the Frequency Asia JV is a great opportunity to
leverage YOD's existing distribution and operations to accelerate
the expansion of our platform and programming to cable, OTT and
mobile operators in region. YOD's participation in our
financing is a strong indicator of the value of Frequency's
platform and business model."
About YOU On Demand Holdings, Inc.
(http://corporate.yod.com)
YOU On Demand (NASDAQ: YOD) is a leading multi-platform
entertainment service company delivering premium content, including
leading Hollywood movie titles, to
customers across China via
Subscription Video On Demand and Transactional Video On Demand. The
Company has secured alliances with leading global media operators
and content developers. YOU On Demand has content
distribution agreements in place with many of Hollywood's top
studios including Disney Media Distribution, Paramount Pictures,
NBC Universal and Twentieth Century Fox Television Distribution,
Miramax, as well as a broad selection of the best content from
Chinese filmmakers. The Company has a comprehensive end-to-end
secure delivery system, governmental partnerships and approvals and
offers additional value-added services. YOU On Demand has strategic
partnerships with the largest media entities in China, a highly experienced management team
with international background and expertise in Cable, Television,
Film, Digital Media, Internet and Telecom. YOU On Demand is
headquartered in both New York, NY
and Beijing, China.
About Frequency
(http://www.frequency.com)
Frequency is a cloud-based internet video service that
aggregates and distributes video from thousands of the world's top
providers, including the leading TV and Multi-Channel Networks, and
individual creators. TV, mobile and over-the-top operators use
Frequency to deliver a complete internet video service to their
subscribers. With one simple integration, operators have access to
Frequency's comprehensive portfolio of licensed content, and a
fully featured video platform, including real time personalization.
Frequency is now powering next-generation consumer video
applications for operators on set-top boxes, mobile devices and the
web. Frequency was founded by Blair
Harrison in Los Angeles in
2010. Harrison previously founded FastTV, an early internet
video search site, and was CEO of online video entertainment
site IFILM, sold to Viacom in 2005.
Safe Harbor Statement
This press release contains certain statements that may include
"forward looking statements." All statements other than statements
of historical fact included herein are "forward-looking
statements." These forward looking statements are often identified
by the use of forward-looking terminology such as "believes,"
"expects" or similar expressions, involve known and unknown risks
and uncertainties. Although the Company believes that the
expectations reflected in such forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. You should not
place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. The Company's
actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of
factors, including those discussed in the Company's periodic
reports that are filed with the Securities and Exchange Commission
and available on its website (http://www.sec.gov). All
forward-looking statements attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by
these factors. Other than as required under the securities laws,
the Company does not assume a duty to update these forward-looking
statements.
CONTACT:
Jason
Finkelstein
YOU On
Demand
212-206-1216
jason.finkelstein@yod.com
@youondemand
corporate.yod.com
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SOURCE YOU On Demand Holdings, Inc.