Profile: Airmedia Group Inc (AMCN.O)
Airmedia Group Inc. (AirMedia), incorporated on April 12, 2007, is a holding company. The Company is an operator of out-of-home advertising platforms in China. The Company operates digital television (TV) screens in 37 major airports, including 25 out of the 30 largest airports in China. The Company also operates digital frames in 32 major airports, including the 15 largest airports in China. In addition, AirMedia sells advertisements on the routes operated by eight airlines, including the three largest airlines in China. The Company also operates traditional media platforms, such as billboards and light boxes, and other digital media, such as mega LED screens. The Company conducts its business primarily through AM Technology, Shenzhen AM and Xi’an AM.
Digital Frames in Airports
The Company operates a network of digital frames, placed in areas of airports such as departure halls, terminals and arrival halls. The Company’s digital frames include standalone digital frames, TV-attached digital frames and mega-size LEDs. Standalone digital frames display advertisements on vertical or horizontal display panels ranging in size from 52 to 108 inches. TV-attached digital frames consist of a vertical digital frame beneath a digital TV screen and are typically in sizes ranging from 47 to 55 inches.
Digital TV Screens in Airports
The Company places digital TV screens in high-traffic areas of airports such as departure halls, security check areas, boarding gates, baggage claim areas and arrival halls. The Company’s airport programs consist of advertising and non-advertising content and are played for approximately 16 hours per day. The non-advertising content consists of humor clips such as hidden camera shows and funny home videos, sports clips such as soccer, snooker and extreme sports, movie previews and interviews with celebrities, as well as the latest world fashion shows.
Digital TV Screens on Airplanes
The Company’s airplane display programs are played once for approximately 45 minutes to an hour per flight. The non-advertising content on these planes includes travel shows, documentaries and sports. The Company also promotes brand names of its advertisers.
Traditional Media in Airports
The Company’s traditional media in airports includes light boxes and billboards. As of March 1, 2014, the Company operated 437 light boxes and billboards mainly in six airports, such as Beijing Capital International Airport and Wenzhou Yongqiang International Airport.
The Company derived a significant portion of its total revenues as of December 31, 2013 from the six largest airports in China: Beijing Capital International Airport, Guangzhou Baiyun International Airport, Shanghai Pudong International Airport, Shanghai Hongqiao Airport, Chengdu Shuangliu International Airport and Shenzhen Baoan International Airport. The programs on the majority of the Company’s digital TV screens include both advertising and non-advertising content. The Company has contracts with third-party content providers such as Travel Channel, Jiangsu TV, Enlight Media and Youku Tudou. The Company’s air travel advertising network primarily consists of standard digital frames, digital TV screens and traditional media. The Company entered into a strategic partnership with China Radio International Oriental Network (Beijing) Co., Ltd, or CRION, which manages the internet TV business of China International Broadcasting Network, to operate the CIBN-AirMedia channel to broadcast network TV programs to air travelers in China. All of the Company’s operations are conducted through contractual arrangements with consolidated VIEs in China: AirMedia Group Co., Ltd, or AM Advertising, Beijing Shengshi Lianhe Advertising Co., Ltd., or Shengshi Lianhe, Beijing AirMedia UC Advertising Co., Ltd., or AirMedia UC, and Beijing Yuehang Digital Media Advertising Co., Ltd., or AM Yuehang. The Company started operating advertising media platforms at gas stations owned by Sinopec in 2009.
The Company competes with JC Decaux.
Airmedia Group Inc
17F, Sky Plaza, No. 46
BEIJING BEJ 100027