YOU On Demand expands strategic partnership with Huawei

YOU On Demand Expands Strategic Partnership With Huawei, Increasing Distribution Reach to 10 Million Addressable Users

NEW YORK — YOU On Demand Holdings, Inc. (NASDAQ: YOD) (“YOU On Demand” or “YOD” or the “Company”), a premium content Video On Demand service provider in China evolving into a global, mobile-driven, consumer management platform for both enterprises and consumers, announced today an expanded distribution agreement with Huawei Software Technologies Co., Ltd. (“Huawei”), the #1 Chinese multinational networking and telecommunications equipment and services company, where both companies shall leverage their respective expertise, technology and infrastructure to provide YOD-branded true / transactional (TVOD) and subscription (SVOD) video-on-demand offerings in Mainland China.

Utilizing Huawei’s InTouch Service Delivery Platform (“Huawei SDP”), the partnership will offer YOU On Demand the ability to improve the end-users’ experience, accelerate time-to-market of YOD’s new services and increase revenue with tools and information that will boost YOD’s ability to seize market opportunities and increase subscriber growth. The Huawei SDP Partnership is a cooperative alliance that empowers telecom operators to distribute content, communication & entertainment services by hosting and offering E2E management services and a bridge to content owners and distributers, like YOU On Demand.

By providing an integrated broadcast control and content service platform along with video on-demand operations services, the Huawei SDP would be akin in functionality to Apple’s iTunes distribution platform but with additional back-end billing and operational support. By leveraging this platform and working under a revenue sharing model, YOD will be able to reach a wider audience of Huawei-related users and partners while simultaneously reducing its operating expenses.

The YOU On Demand branded zone will offer its licensed content through both a TVOD and SVOD option. The SVOD zone will provide a total of 384 SVOD Hollywood and Chinese movies, including up to 120 at any given time with a guaranteed 20% refresh update (i.e., 24 movies) every month.

“We are extremely proud to continue working with Huawei with this next step strategic partnership. Huawei’s clout, state-of-the-art technology and global influence, make them an extremely desirable business partner. This partnership signifies the proliferation of YOU On Demand’s Pay Content Group, which includes subscription-based and single-use transactional services, and allows YOU On Demand to work with Huawei’s telecom partners through Huawei’s fully-realized value-added-service ecosystem,” said Mingcheng Tao, CEO of YOU On Demand.

Along with the recently announced joint venture with Frequency Networks and the distribution partnership with GoLive TV, YOU On Demand’s new contracted addressable user base is now expected to reach approximately 170 million by the end of 2016.