Chinese LeTV announces profitability and heavy investments in film content

17 March 2011 22 h 31 min 26 comments

The Chinese online video platform Letv.com reported a 57.63 percent increase in 2010 net profit to 70.1 million yuan and announced its intention to increase its investment in film content.

Leshi Internet Information & Technology (the mother company of Letv.com) reported a 57.63 percent increase in 2010 net profit to 70.1 million yuan. According to the company filing, sales revenue in 2010 rose 63.49 percent to 238 million yuan, with earnings per share (EPS) of 0.84 yuan, up 42.37 percent. The company announced a stock dividend of two shares and a cash dividend of 1.5 yuan for every 10 shares held. According to its chairman, “LeTV is the first chinese online video platform to be profitable.” According to a research report by Chinese firm Galaxy Securities, charging to watch videos, copyright distribution and advertising – the three main streams of revenue for LeTV – are the reasons that the company has turned a profit ahead of its larger rivals Youku and Tudou.com Inc., who have a larger share of online video viewers in China.

New content investments

In order to pursue this growth, the Beijing’s subscriber fee online vide platform confirmed its intention to develop its exclusive content acquisitions.  LeTV hast just hired Zhang Zhao, formerly head of Enlight Pictures, to head up a new feature film division. Zhang produced Chinese hits such as the All’s Well That Ends Well films (2009-10). He told The Hollywood Reporter “LeTV has produced a few films but they wanted to get deeper into the film business and expand their international connections. I’m interested in their Internet business but my job is to build up the infrastructure of the Le Vision Pictures.”

“le,” means ”entertainment” in chinese and the company wants to justify its name. Last february, Leshi Internet Information & Technology anounced its project to spend 40 million yuan to purchase online copyrights of four television dramas. One month earlier, the platform purchased sole online copyrights for 19 television dramas from Huayi Brothers for 57 million yuan

In early january 2011, xinhuanet.com reported that LeTv acquired over 70 percent of the 2011 copyrights for popular serial television programs in China and would spend over 100 million yuan on copyrights of movies and television dramas. According to chinese press, Letv.com was therefore able to simultaneously broadcast more than 100 serials, with six local TV stations and one central station enabling an exclusive weekly broadcast. “Acquisition costs for internet use of some of China’s most popular serials now outstrip those for satellite TV broadcasting,” revealed the Letv’s CEO Liu Hong.

SOURCES: LeTV, press (15 & 16/03/2011)

Related posts:

Leave a Reply

You must be logged in to post a comment.

Other News

  • China (mainland) film Brilliant future expected for Chinese cinema: interview

    Brilliant future expected for Chinese cinema: interview

    Jiang Wen (R), a well-known Chinese director, walks down the red carpet with his wife Zhou Yun at the opening ceremony of the 70th Venice Film Festival in Venice, Italy, Aug 29, 2013. [Photo / Xinhua] (Xinhua, 04 Sep, 2013)Chinese films have achieved over the past few years very positive results in terms of both quantity and quality, and will drive their technology-led development, 70th Venice Film Festival president Alberto Barbera told Xinhua in a recent exclusive interview. This venerable [...]

    Read more →
  • Breaking news China (mainland) film Cloudary extends script to movie industry

    Cloudary extends script to movie industry

    (chinadaily.com.cn, 26 Aug, 2013) Cloudary Corp – an online literature platform owned by interactive media giant Shanda Group – said on Friday that it reached a film script agreement with the Chinese movie firm Seven Stars Films. Seven Stars Films, a movie production and investment firm owned by Chinese media entrepreneu r Bruno Wu, will link Cloudary’s literature with the world’s movie industry. Wu, who is married to popular TV host Yang Lan, founded Seven Star Films in 2012. The [...]

    Read more →
  • Breaking news China (mainland) film China’s movie market booms with local content

    China’s movie market booms with local content

    ( Agencies, 23 Aug, 2013) In “American Dreams in China”, Cheng Dongqing is giving a lecture in an abandoned factory in Beijing . Snow falls through the damaged roof and a power cut sends students reaching for their flashlights. The movie , about how young Chinese in the 1990s tried every means to learn English so they could study overseas, is part of a boom in domestic productions that is outpacing foreign film s at the box office in China. [...]

    Read more →
  • Breaking news China (mainland) film Fast forward with film

    Fast forward with film

    (China Daily, 23 Aug, 2013) In the past year, Chinese films have galloped ahead like a dark horse, beating Hollywood imports. It is hardly surprising that most of these domestic hits are comedies. Comedy is mostly local. When Hollywood sent scouts to recover the secret formula, many of them reported that these Chinese movies were not particularly funny. Of course not. When you translate every line into English, you have lost much of the fun, leaving only a few sight [...]

    Read more →
  • Breaking news China (mainland) Digital Mobile game firms looking abroad

    Mobile game firms looking abroad

    (China Daily, 21 Aug, 2013) Intensifying domestic competition is driving Chinese mobile game developers into overseas markets, said Google Inc, owner of the world’s most used smartphone operating system. Japan and South Korea may become “sizeable” money-spinners for developers in China in the coming years, it added. “Tapping into South Korea and Japan makes sense for Chinese developers, because both countries have a large smartphone user base and high sales volume in the mobile gaming sector,” said Ben Zhang, China [...]

    Read more →
  • Breaking news China (mainland) tv PPTV denies buyout rumors

    PPTV denies buyout rumors

    (chinadaily.com.cn, 14 Aug, 2013) Online video provider PPTV has denied rumors it will be jointly acquired by e-commerce giant Alibaba Group Holding Ltd and Hunan Satellite TV. “We have noticed related media reports. PPTV is operating independently, well, and we have nothing to announce at present,” PPTV told China Daily on Wednesday. A report from IT industry portal 36kr.com said on Wednesday that the prospective deal is almost closed, with the transaction reaching $400 million. It cited venture capital sources [...]

    Read more →
  • Breaking news China (mainland) film Film industry needs long tail to grow

    Film industry needs long tail to grow

    (China Daily, 15 Aug, 2013) The domestic film market registered record half-yearly box office returns of 10.9 billion yuan ($1.77 billion) in the first six months of this year, up 35 percent year-on-year, and there have been excited voices saying that the Chinese film industry is about to boom in the international market. However, box office success is just part of the industry’s chain, and without the further development of licensed movie merchandising, the Chinese film industry is still in [...]

    Read more →
  • Breaking news China (mainland) Digital New WeChat game becoming painfully popular

    New WeChat game becoming painfully popular

    (chinadaily.com.cn, 15 Aug, 2013) A new mobile phone game on WeChat, a social network app in China, is proving so popular that it’s causing hand injuries for many Chinese users. The game, which was recently introduced to WeChat’s 400 million subscribers, allows users to compete online with their friends in aircraft battles. Within two hours after the release of the game on Aug 5, there were more than 180 million downloads. But Zou Cheng, an orthopedic doctor at Hangzhou First [...]

    Read more →