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Wizzard Updates FAB’s Retail Media Distribution Business

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

FAB Retail 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, retail and digital kiosks.

Audited Revenues for FAB’s Retail business segment were $7.8 million in fiscal 2010 and $9.7 million in fiscal 2011. FAB currently operates a 30,000 sq. ft. store in the prestigious Joy City shopping mall (recently visited by Wizzard’s CEO and CFO) and is currently updating and relocating a second store to the new Guosheng shopping mall. See pictures of both of these stores by clicking  here.

FAB’s Retail distribution business is built around large, showcase retail stores located in high-end shopping malls that sell media content and related media devices. FAB’s flagship stores serve as showcases for movie and music star autograph appearances. Through licensing agreements signed with media companies, FAB is able to use its stores as platforms for domestic star signing ceremonies, with over 2,000 events attended by millions of fans under its belt FAB’s Retail operation has grown to become China’s most well-known venue for new media releases and announcements.

In addition to generating significant revenue selling traditional media, the stores are flagships for building FAB brand awareness with consumers and promoting the expansion of FAB’s franchises. Additional retail stores are planned for Chengdu, Guangzhou, and Shanghai.

The Chinese government has recently announced initiatives for the protection of copyrighted content as both an official policy and a strategic priority for expansion by Western media, and it has publicly recognized FAB as an anti-piracy champion. Post-acquisition, the parties intend to aggressively pursue opportunities for expansion and further acquisition in China’s fragmented and emerging media industry.

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