Profile: Airmedia Group Inc (AMCN.O)

AMCN.O on Nasdaq

30 Sep 2014
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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. As of December 31, 2012, the Company operated digital frames and digital television (TV) screens in 34 airports in China, including the airports in China: Beijing Capital International Airport, Guangzhou Baiyun International Airport, Shanghai Pudong International Airport, Shanghai Hongqiao International Airport, Chengdu Shuangliu International Airport, and Shenzhen Baoan International Airport. In addition, the Company had contractual concession rights to sell advertisements on digital TV screens on the airplanes operated by nine airlines, including airlines in China such as China Southern Airlines, Air China, China Eastern Airlines, Hainan Airlines and Shanghai Airlines. The Company generates revenues from advertising services at the platforms: digital frames in airports, digital TV screens in airports and on airplanes, traditional media in airports such as light boxes, billboards and painted advertisements and gas station media displays and other outdoor media displays outside of the air travel advertising sector. In February and March 2012, the Company and Beijing N-S Digital TV Co., Ltd established two joint ventures: Beijing Xinghe Union Media Co., Ltd, or Beijing Xinghe, and Beijing Shibo Movie Technology Co., Ltd., or Beijing Shibo, respectively.

Digital Frames in Airports

The Company operates a network of digital frames, strategically placed in areas of airports such as departure halls, terminals and arrival halls, where the air travelers congregate and spend time waiting. Its digital frames are high-definition liquid crystal display (LCD), screens that typically change digital picture displays approximately every 6 or 12 seconds, with certain exceptions of 5 to 10 seconds in certain large airports. 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. In response to advertiser advertising needs, the Company also owns and operates digital frames of a larger size, up to 108 inches, in the airports of Beijing and Guangzhou. In both international and domestic arrival halls of Terminals two and three of the Beijing International Airport, it operates 44 sets of 108-inch LCD screens that measure four square meters (43.1 square feet) each; it also operate 11 sets of 108-inch LCD screens in departure halls, security checkpoints, luggage pickup and subway entrance areas inside Guangzhou Baiyun International Airport. In addition, as of March 31, 2013, the Company was operating mega-size light emitting diode (LED) screens in seven airports, including Guangzhou Baiyun International Airport, Nanjing Lukou International Airport, Changsha Huanghua International Airport, Xi’an Xianyang International Airport, Chengdu Shuangliu International Airport, Jinan Yaoqiang International Airport and Hangzhou Xiaoshan International Airport. As of March 1, 2013, the Company operated approximately 3,403 digital frames in 34 airports, 1,193 of which were standalone digital frames, including 108-inch LCD display screens and mega-size LED screens, 1,765 of which were TV-attached digital frames, and 445 of which were frames displayed in groups.

Digital TV Screens in Airports

The Company places its digital TV screens in high-traffic areas of airports such as departure halls, security check areas, boarding gates, baggage claim areas and arrival halls, where there tend to be waiting time. A majority of its standard digital TV screens are 42-inch plasma display panels or LCDs. As of March 1, 2013, the Company operated approximately 2,579 digital TV screens in 34 airports in China under various concession rights contracts. Its airport programs consist of advertising and non-advertising content and are played for approximately 16 hours per day. Its non-advertising content is played in two-hour cycles, during which its advertising content is repeated hourly. During each hour, 20 minutes of the program consists of advertising content provided to the Company by its advertisers and the rest of the program consists of non-advertising content such as sports and entertainment content provided by third-party content providers.

Digital TV Screens on Airplanes

As of March 1, 2013, its programs were placed on digital TV screens on planes operated by seven airlines. The displays on its network airplanes, which have been installed by aircraft manufacturers, are located at the top of passenger compartments and on the back of passenger seats. The digital TV screens at the top of passenger compartments typically range from 9 to 15 inches in size, while the display screens on the back of passenger seats typically range from 7 to 9 inches in size. There are approximately 10 to 280 on an airplane. The TV system installed on each plane differs from one another according to the requirements of each specific airline. For instance, if the airline chooses to implement audio-video on demand (AVOD), systems and personal TV, or personal television (PTV), systems, then it would have to install TV screens on the back of each and every seat on the airplane. The Company’s airplane display programs are played once for approximately 45 minutes to an hour per flight. Approximately five to 15 minutes of each program consist of advertising content provided to the Company by its advertisers and the rest of the program consists of non-advertising content. The non-advertising content on these planes includes travel shows, documentaries, sports and other content similar to that shown on its airport programs. The Company also promotes brand names of its advertisers through its programs by naming its programs after their brand names or displaying their logos on the corner of the screens during the programs.

Traditional Media in Airports

The Company’s traditional media in airports includes light boxes and billboards in airports and billboards and painted advertisements on gate bridges in airports. As of March 1, 2013, the Company operated approximately 400 light boxes and billboards mainly in six airports, such as Beijing Capital International Airport and Wenzhou Yongqiang International Airport. Light box advertisements are static poster advertisements illuminated with back lighting and billboard advertisements are only static poster advertisements. The advertisements on gate bridges in airports include billboard and painted advertisements on interior or exterior walls of gate bridges.

Other Media in Air Travel

The Company has logos for various display equipment in airports prominently displayed on this equipment. The Company charges advertising fee for such logos.

Gas Station Media Network

This network consists of outdoor advertising platforms strategically placed in Sinopec gas stations where there is high visibility and waiting time. These outdoor advertising platforms consist of traditional advertising formats such as light boxes and billboards, and display advertising content in month-long slots.

Other Media Network

The Company operates approximately 23 unipole signs and other outdoor media in locations throughout Beijing. Its developed outdoor media network provides an alternative advertising platform to its advertisers in addition to its existing air travel media network.

The Company competes with JC Decaux.

Company Address

Airmedia Group Inc

17F, Sky Plaza, No. 46
Dongzhimenwai Street
Dongcheng District
BEIJING   BEJ   100027
P: +8610.84386868
F: +8610.84608658

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