The Q1 will accelerate the investment layout around the strategic positioning of "home entertainment center"

The 2014-year quarterly results were released late April 27. The company's first quarter operating income of 643 million yuan, an increase of about 34%, attributable to the hundred-view shareholder net profit of 183 million yuan, an increase of about 25% per cent, the net cash flow generated by the operating activities of 735,000 yuan, the year-on-year growth of about 102%. According to earnings reports, the growth of the first-quarter operating income of the company mainly comes from IPTV, OTT business demand income and advertising revenue growth.

Hundred-Vision is the first domestic radio and television new media listed companies, by the Shanghai Media Group (SMG) and Tsinghua Tongfang Joint venture, the main business includes IPTV, OTT, internet TV and mobile internet services including mobile TV.

In IPTV business, the company cooperates with telecom network operators and radio and television systems to provide many kinds of services such as digital TV to home users. For OTT business, the company has built its own system platform including operation support system, payment system, large data analysis system, advertising system and application mall. As for the mobile internet business, the company is mainly in the carrier platform to provide video services, on its own platform has launched 3 video class app.

Backed SMG, the new media technology, content and copyright has invested 1 billion yuan, now has 350,000 hours of copyright content resources reserves. Last August, the public announced that its services of IPTV users accumulated to 18 million, Internet TV, mobile TV users more than tens of millions.

In the presence of multiple-screen interaction and 4G video coming up, according to the head of the Hundred-vision, the "cloud TV" will be the core platform, the long-term positioning is to become a "family entertainment center", will cover television, games, online education, telemedicine, television lottery, E-commerce and other fields, and eventually build a "family business ecology." In the terminal aspect, the hundred-Vision will carry out "high school Low" configuration: High-end through with Microsoft cooperation, will be the game host Xbox mainly, in low-end to Ott's and business-to-business business mainly.

In the last year or two, the strategic positioning of the "Home entertainment Center", the vision to accelerate the investment layout. 2012 30 million dollar strategic investment popular network, accounted for 35%, August 2013 again injected capital, to 307 million yuan for holding status, accounted for 54% shares. According to Tau, president of the company revealed that after the holding of the popular network, hundred-Vision will start the network integration strategy, and will be SMG, hundred-Vision and popular network video business resources for further optimization, technology, content, capital and other fields of integration and synergy.

Last year, the company reached a partnership with Microsoft, plans to set up a joint venture, will release the local version of the Xbox, the two sides in the platform construction, games, Chinese character recognition and other aspects have been a number of communication and technology docking. On the other side of the story, the idea is to build an Xbox platform, an important plan is to invest and support video games related to the industrial chain and content production, in the game content, will consider "Taijiquan" such as the essence of traditional culture as the theme of the development of the game, and the use of the Xbox platform Hundred-Vision said that the Xbox is a "home entertainment center" of a carrier, will become IPTV, OTT, another major line of business, the profit model depends on the hardware, the second depends on content marketing, three operations. As for Microsoft, the Xbox brand has not only been about Microsoft's console, but also the idea of an Xbox-hosted or Microsoft's entire entertainment ecosystem after the Xbox music platform and the digital movie and television platform.

In addition, in the release of the first quarter earnings, the company also announced that the plan to invest in "Shanghai Rui Cai Tong Technology company", accounted for 35% of the shares, into the television lottery, internet lottery and other business areas. According to our recent report, the Chinese lottery industry has not been very high internet level, 2013 lottery sales of about 310 billion, of which the Internet lottery accounted for only 13.5%, and in the Internet lottery, the share of the app trade is only a little more than 20%.

In addition, last week, Blockbuster announced that to set up a wholly-owned holding subsidiary of "Hundred-Vision Investment company" in Shanghai FTA, the first phase will invest 900 million yuan, plan at home and abroad, look for "home entertainment" industry and the internet new media industry mergers and acquisitions, investment layout opportunities, improve the company's new media industry chain.

Home entertainment nearly a trillion of global market scale, so that have video content or strong channel distribution capabilities of the company, in addition to the hundred-vision, music, millet, cool potatoes, Archie art, etc. through the introduction of smart TV or set-top box products, hope to occupy the family living room of this screen.