FAB Universal (NYSE MKT:FU), a worldwide distributor of digital media and entertainment, has entered into an agreement with Future TV Co. Ltd. to distribute its copyright-protected media content through pay TV terminals used in the home by Future TV’s subscribers.
Under the terms of the agreement, FAB will provide copyright protected content including high-definition video, music lessons, children's programs, and other educational and related programming. Future TV will integrate the content provided by FAB Universal with its operational platform and manage subscriber payments.
Future TV is a subsidiary of China Network Television (CNTV), the online division of China Central Television (CCTV), which is the national public broadcaster in China. It operates a national Internet TV platform, China Internet TV, the first such platform authorized by China's State Administration of Radio, Film and Television. With its established integrated broadcast platform for subscription TV, Future TV reaches 20 million families in China, provides over 1.3 million hours of quality video-on-demand programming and has one of the largest content libraries in China including prime-time shows, documentaries and educational curriculum programs and the exclusive Internet TV broadcasting of the Olympics and World Cup.
“The agreement with Future TV is a significant milestone for FAB, marking the launch of our subscription TV business and further extending our distribution platform. Future TV’s national Internet TV platform and extensive reach provides a strong foundation for us to enter the rapidly growing Internet TV industry in China. We can now market to Future TV’s sizeable subscriber base, leveraging FAB established premier brand to further monetize our copyright-protected media and entertainment content,” said Chris Spencer, CEO of FAB Universal. “Going forward, our ambition is to become a leading pay-TV content operator in China. Our plans include entering digital TV, through distribution agreements with cable network operators, and IPTV and over-the-top TV (with the set top box already installed in the television), through distribution agreements with telecom and content aggregation licensing providers. Expanding our distribution platform to encompass subscription TV will position FAB Universal at the forefront of the trend toward greater Internet usage and rising Internet penetration rates in China.”