What happened
On June 16, Wisdom Group announced that it has entered into acooperation agreement with the economy channel of the HunanBroadcasting System (“HBS”) in the development, design,production, promotion and market development & managementof sports entertainment and new media sports programs.
Comments
The economy channel is an important TV channel underHBS in addition to the Hunan Satellite TV. It produces various TVseries and programs that are shared within HBS.
Wisdom opens up a new channel for its sports-relatedoperations. Previously, Wisdom focused on sportsorganizations and mainly worked with CCTV in terms of sportsbroadcasting. The agreement opens up a new channel forWisdom to broadcast its sports events and other operations.
Cooperation with HBS allows Wisdom to produceprograms and gain new revenue streams. HBS is a leadingand sophisticated producer of TV series and entertainmentprograms in China’s entertainment industry. We expect Wisdomto produce some new sports entertainment programs, which canbe broadcasted on the channels of HBS, as well as on the newmedia channels such as the Internet. The new business modelshould bring Wisdom new revenue streams.
“Sports + entertainment” strategy to improve Wisdom’sbrand awareness and the attractiveness of the sportsevents held by Wisdom. By producing programs focusing onsports entertainment, Wisdom will increase its brand awarenessand the popularity of its sports events such as Season Run andMarathons, and eventually increase the group’s revenue.
The cooperation is an important step of Wisdom in building itsvalue chain of “sports + entertainment” in addition to its “sports+ events”, “sports + marketing” and “sports + service”strategies. We believe Wisdom will become the industry leaderafter it completes the creation of its sports ecosystem