Wizzard Updates FAB’s Growing Wholesale Media Distribution Business

Wizzard Media (NYSE Amex: WZE), the leading podcast network, today released the first of several informational business overviews regarding FAB. Over the next several weeks, Wizzard plans to issue additional overviews based on various FAB business segments including: wholesale media distribution, retail and franchise based distribution of media products as well as digital kiosk based distribution of media products.

FAB Wholesale Media Distribution Business

Founded in 2003, FAB is headquartered in Beijing and distributes over 150,000 media based products including copyrighted DVD’s, Blu-ray Discs, music CD’s, video games and downloadable digital content through three distribution channels – wholesale and retail, vending kiosks and internet stores.

FAB wholesale distribution business distributes media products to over 80 customers including Sohu (NASDAQ: SOHU), Dangdang (NYSE: Dangdang) and Century Outstanding Information Technology Company, a subsidiary of Amazon.com (NASDAQ: AMZN). FAB’s wholesale business caters to three types of customers: large retail stores, FAB franchise stores and small wholesale/resellers. Customers place orders by telephone, through the internet or in-person and fulfillment is handled by FAB’s vehicle fleet or through direct warehouse access.

With over 100 suppliers and 80 wholesale customers, including the Government, the wholesale business segment is growing rapidly with FAB strongly positioned to be the leader in copyright protected material as the media entertainment industry continues to expand in China. Revenues for the wholesale business segment were $23.5m ’09, $31.9m ’10, $44.7m ’11 and $27m for the first six months of fiscal 2012.

Recently, the Chinese government announced initiatives for the protection of copyrighted content as both official policy and a strategic priority, and has publicly recognized FAB as an early anti-piracy champion.

The development of the digital media industry in China is now a national strategic initiative based on China’s official Eleventh Five-Year Plan passed by China’s National People’s Congress. Following sustained lobbying efforts by western media companies, China has begun to relax its longstanding limits on foreign media. For example, up to 20 blockbuster western movies can now be shown in Chinese theaters per year. The demand for viewing foreign DVD content on personal entertainment devices has burgeoned and with the government’s official crack-down on pirated content becoming official, FAB and the network of retailers it supplies have experienced substantial increases in demand.

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