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BEVERLY HILLS, CA —Aug 21, 2003
Alpha Spacecom Signs Landmark Agreement With China Film Group to Distribute Digital Content via Satellite
lpha Spacecom Company Limited (OTC BB: ASPC) announced today that it has signed a landmark agreement with China Film Group Corporation ("CFG") to create a satellite digital cinema and home distribution platform for the presentation of major Western and domestic motion pictures. The motion pictures, as well as other content, will be delivered through digital projection cinemas and a satellite pay-per-view system ("SPPV") over the course of the project.
Under the agreement, Alpha Spacecom will form with CFG a joint venture entity, owned 51% by CFG and 49% by Alpha Spacecom, that will reconstruct and upgrade movie theater complexes to digital projection format and implement a home pay-per-view system, both of which will receive digitized content via satellite transmission. Currently CFG is the leading entity in China authorized by that country's government to import, export and license filmed and other entertainment content and will inject RMB 200,000,000 in the form of cash, existing systems and equipment, and specially authorized operations licenses against an Alpha Spacecom investment of US$30,000,000.
The joint venture will invest in the reconstruction and conversion of two hundred select locations to the digital cinema format, and will establish a satellite hub to provide satellite transmission services for the distribution of digital entertainment. Content distribution and digital cinema box office receipts will be the primary revenue drivers of the joint venture.
The new system will effectively address piracy issues that have plagued China by providing digitally delivered encrypted signals to cinemas and SPPV subscribers, creating a robust and mutually beneficial operations environment for this burgeoning service.
Mr. Tony Hu, Managing Director of Alpha Spacecom, hailed the agreement as historical, commenting, "Alpha Spacecom is delighted to enter into this landmark agreement with CFG to jointly develop the vast market in China. Having CFG as an exclusive partner with its enormous resources, government authorization, operations expertise, and systems already in place is a tremendous business opportunity."
The integrated operations of the Alpha Spacecom CFG joint venture underscores the close cooperation the two companies have enjoyed and signifies the beginning of revenue-generating prospects for Alpha Spacecom operations in China once the requisite capital is raised and the platform is developed.
About China Film Group Corporation:
China Film Group Corporation (“CFG”) is China’s largest and most influential state-run film enterprise and the sole importer of foreign films in China. CFG's scope of business spans film and television production, film distribution and exhibition, film importation and exportation, cinema circuit management, digital cinema construction, movie channel, print developing and processing, film equipment management, digital film production, film and TV compact disc production, ancillary products, advertising, property management as well as real estate.
China Film Group Corporation Directory page
China Film Group Corporation (Beijing)
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