For the first time, the government authorities introduced regulatory measures on the outdoor electronic screen advertising industry, with the aim of regulating market order, eliminating hidden dangers in traffic safety, and guaranteeing citizens' space rights. Yesterday, Phoenix Satellite TV Holdings (08002.HK) announced that it will invest HK$57.75 million in the construction of a large-scale outdoor LED display screen for the joint venture subsidiary Phoenix City Media. After the capital injection is completed, Phoenix Satellite TVâ€™s shareholding will remain at 75%. change. Phoenix Metropolis is a joint venture between Phoenix Satellite TV Holdings and Zhongyu Group, which is engaged in outdoor media business in the Mainland. Previously, Phoenix Satellite TV Holdings and Zhongyu Group had injected capital of HK$35 million into the company. A new round of capital injection totaled HK$87 million, Phoenix Satellite TV Holdings invested HK$57.75 million, and Zhongyu Group injected HK$29.25 million. After the completion of the capital injection, the shareholding ratio of the two parties remained unchanged, still at 75% and 25% respectively. Large investment At the beginning of this month, China's outdoor large-screen media, Xiangli Li Media, has disclosed a financing agreement with venture capital firm Softbank Safran, which will amount to 30 million US dollars. Analysys International analyst Gao Xiaohu said that from February to March this year, only one month, according to incomplete statistics, there are 200 million US dollars of funds injected into the outdoor video advertising market and outdoor LED large screen is one of the main directions. At present, including the Focus Media (FMCN.NASDAQ) and Tulip Media are in this city, the pattern of these outdoor media is to hang a huge advertising display in the urban business circle and crowded places. For example, the screen area of â€‹â€‹the Lansheng Building in Shanghai is 350 square meters, while the screen of a general cinema is below 200 square meters. This kind of advertising display screens are huge in size, and some of the large screens that are hung on the crowded shopping malls in the high-end business districts may have a total investment of tens of millions of yuan. In 2008, Champs Media will complete the distribution of more than 20 large cities across the country and build about 35 outdoor LED advertising displays. Shanghai Tulip Media received a total of $70 million in financing last year. According to previous data, the Tulip Media Development Network has spread to 12 core cities in China, with 28 outdoor LED large screens, and is still expanding. The restrictions will be severely checked by the â€œFirst Financial Dailyâ€. Recently, the Beijing Municipal Administration Committee announced the â€œBeijing Outdoor Electronic Display Setting Specificationâ€, which clearly stipulates that outdoor digital advertising terminals cannot impede road traffic safety and cannot be used by nearby residents. Form light pollution or noise pollution. This is the first time that the government authorities have introduced supervision measures for the outdoor electronic screen advertising industry. The purpose is to regulate market order, eliminate hidden dangers in traffic safety, and guarantee citizens' space rights. Analysys International analysts believe that, on the whole, the regulatory requirements have greatly improved the industry's entry barriers. Analysys International believes that at present, the LED large-screen operators in the main pedestrian streets and core business districts in China are tulip media, etc. Their commercial terminals are mainly distributed in core business districts such as Shanghai Xujiahui. The main road LED small screen is still relatively scattered. The main operator is Focus Media's â€œiStreetâ€ network, which is currently expanding into cities such as Chengdu and Guangzhou by acquiring high-quality outdoor space resources. The specification is expected to allow the industry to reassess policy risks.
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