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YOU On Demand On The Impact Of China's New Online Publishing Rules
Foreign entities and Sino-foreign joint venture organizations continue to be prohibited from operating online publishing services
By Mi2N
(more articles from this author)
2016-03-03
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YOU On Demand Holdings, a Video On Demand service provider delivering Hollywood movies & premium content to TV and mobile screens in China, does not view its business to be impacted by the Administrative Provisions on Online Publishing Services issued by China's Ministry of Industry and Information Technology ("MIIT") and the State Administration of Press, Publication, Radio, Film and Television ("SAPPRFT") on February 15, 2016.

On February 15, 2016, MIIT and SAPPRFT released the codified New Publishing Services Rules, under which foreign entities and Sino-foreign joint venture organizations continue to be prohibited from operating online publishing services and engaging in original or adapted content distribution, including but not limited to: text, images, games, animation, audio records and videos. The New Publishing Services Rules also emphasize regulation of content publication through online mediums. The effective date for the announced regulation is March 10, 2016. Based on management's assessment, the New Publishing Services Rules will not have an impact on YOU On Demand's business operations or financial position.

YOU On Demand, through its domestic entities, has historically adopted processes that follow Chinese laws and regulations for online publishing including obtaining the proper content approval from SAPPRFT, or its designated agencies, to ensure that the relevant government clearances have been obtained for any and all content distributed by the Company. Bruno Wu, Chairman of YOU On Demand, commented: "The codified regulation is not introducing any new rules for the media industry in China. It has simply re-affirmed that YOU On Demand has been operating correctly and in compliance by implementing consistent business practices that adhere to the SAPPRFT approval process. As the Company moves forward to develop its strategy from a content distribution business to a fully-integrated media services ecosystem, we believe that these strengthened regulations will evolve into new business opportunities for YOU On Demand."

Related News from Mi2N:
» YOU On Demand Confirms Business Will Not Be Impacted By China's New Online Publishing Rules


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