PPTV to Offer Cloud-Based Online TV Platform with Microsoft

SHANGHAI — Microsoft (NASDAQ: MSFT) and PPTV, China’s leading Internet TV service provider, signed a strategic partnership memorandum today to launch PPTV Asia TV Networks (ATN) platform on Windows Azure. This one-stop Internet TV service platform will offer content and service providers a new scale of business opportunities. This is also Microsoft’s first cloud-based collaboration with a local Chinese new media company. Zhengyi Liu, the Deputy District Head of Shanghai Pudong New Area District, Ya-Qin Zhang, Microsoft Corporate Vice President and Chairman of Microsoft Asia-Pacific R&D Group, and Chuang Tao, Chief Executive Officer of PPTV attended the signing ceremony in Shanghai.

According to the memorandum, PPTV will adopt Windows Azure as the core infrastructure platform for PPTV ATN. PPTV ATN will provide a cloud-based Internet TV solution to satisfy the growing global internet TV demand. PPTV will also continue to explore the collaboration opportunities with Microsoft on online TV, media service platform and Content Delivery Network (CDN) for its next generation domestic market needs.

“PPTV chose Windows Azure platform because of its reliability, scalability, and global availability, which can accelerate PPTV’s international expansion. PPTV ATN creates an innovative user experience, to deliver to global audience with global contents, live and VoD, across screens. PPTV ATN innovates in business model, to create an ecosystem for content providers and service operators through revenue sharing. PPTV ATN is also the first to deliver complete video cloud service on Azure,” said Chuang Tao, CEO of PPTV. “With Windows Azure, we can offer scale and flexibility not found anywhere else. We can also avoid unpredictable resource and demand fluctuations globally. PPTV ATN can thus pass on these benefits to our partners, and in the end to our global customers. This is a new competitive edge for our business.”

Internet TV is disruptive to entertainment business, with huge potential also a high barrier of entry. For content providers, the lack of insights into local markets is an obstacle to maximize profits. For regional service providers, the demand for technical expertise, and the intensive capital requirements to acquire content library and to build out network infrastructure is prohibitive. PPTV ATN allows global content providers to upload content to the library, and to license to service providers through revenue sharing. This creates new opportunities for content providers, service providers, and to global audience.

“Cloud computing is widely recognized as the nerve center of the next generation of information technology. And cloud-based services for most of the cases are well-connected to local markets,” said Ya-Qin Zhang, Microsoft Corporate Vice President and Chairman of Microsoft Asia-Pacific R&D Group. “Microsoft is making solid progress of bringing Windows Azure to China through collaboration with local partners. We are very pleased to see that Windows Azure enables PPTV to deliver a global online TV service platform. It’s a great example of how Microsoft supports China internet companies’ innovation, efficiency and sustainable growth in the global market.”

The collaboration between PPTV and Microsoft will help domestic OOT industry realize new business models overseas, integrate resources of content, service and technologies, as well as become a local showcase of online TV subscription platform.