YOU On Demand Enters 20-Year Contract to Deliver VOD to China

By Rob Scott
March 27, 2012

“The Motion Picture Association of America released statistics today saying that Chinese theatrical revenue grew 35 percent to nearly $2 billion last year, making China the world’s third biggest film market behind the U.S. and Japan,” reports paidContent. “More quietly, though, a U.S.-based upstart VOD distributor, YOU On Demand, might be emerging as an even greater force for U.S. studio profits in China.”
YOU On Demand entered China under a 20-year exclusive contract from the government to run national VOD services.
The New York-based company, run by former professional wrestler Shane McMahon, drew attention last year when it signed Warner Bros. to the first VOD deal in China. Within the last month, the company announced agreements with Disney, Lionsgate and Magnolia Pictures. More studio partnerships are expected.
“YOU On Demand has been able to entice American studios with a ‘anything is better than nothing’ proposition, given the traditionally rampant piracy of U.S. video content in the region,” suggests the article. “Going forward, the company projects sizable revenue for its U.S. partners, who provide their video content on a revenue share basis under which they control a majority interest.”

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