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YOU On Demand to Form Joint Venture with LA-Based Frequency Networks
 
   

NEW YORK, May 3,    2016 /PRNewswire/ -- 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 that the Company and Frequency Networks, Inc. ("Frequency Networks"),    a cloud-based internet video service that aggregates and distributes content from    thousands of the world's top providers, including the leading TV and Multi-Channel    Networks, have entered into two agreements: 1. a binding agreement to form a Joint    Venture called Frequency Asia (the "Frequency Asia JV"), dated April 13, 2016 (the "JV Agreement)" and 2. a Series A Preferred    Stock Purchase Agreement  (the "Frequency SPA") for the purchase by YOD of    certain Frequency Series A Preferred Stock.

   

Frequency Networks, which has global partnerships with leading cable, satellite    and mobile operators reaching over 150 million subscribers, builds and operates an    intelligent content discovery platform that powers white-labeled video services and    applications for TV and mobile devices.

   

The Frequency Asia JV

   

The Frequency Asia JV will have two main operational components that will provide    YOU On Demand, via the JV, the opportunity to expand both its content offering and    distribution footprint.

   

A.   Expanded Distribution: The JV    will provide Frequency's white-labeled platforms exclusively to the Asian region    (including, but not limited to China, India, Philippines,    Malaysia and Vietnam, etc.).  Utilizing a B2B distribution model, the JV    will provide customized content services with multi-screen capability to large and    established operators in the region.  Frequency Asia programming will include    more than 70,000 channels, organized into 60+ unique vertical categories.  The    viewing experience can be further optimized with personal feeds and channels driven    by Frequency Networks' enhanced metadata format and proprietary recommendation and    video search engine.

   

B.   Global Content Channels: The    JV will develop a stable of made-for-web channels with brand partners that integrates    original and licensed content for categories including sports, fitness, music, food,    tourism, science and more.  These channels will be rolled out globally across    the JV's distribution partners that include major cable, satellite and mobile    operators in the US, Europe and Asia, and via direct-to-consumer apps for iOS, Android, Amazon    Fire and other platforms.  The JV will also integrate and distribute third party    e-commerce, social networking & affiliate marketing capabilities into its branded    and white-labeled service.

   

In connection with the JV Agreement, Frequency Networks issued 6-year warrants to    the Company exercisable at any time into up to 3,000,000 shares of Frequency    Preferred Stock.

   

Series A Preferred Stock Purchase Agreement

   

In addition to the JV Agreement, the Company entered into the Frequency SPA for    the purchase of $3 million of Series A Preferred Stock    (the "Frequency SPA").

   

The initial purchase of shares of Frequency Preferred Stock (at a purchase price    of $2 million) was closed on April 13, 2016 (as described in YOU On Demand's current report on    Form 8-K, filed on April 19, 2016) and the remaining    purchase of shares of Frequency Preferred Stock (at a purchase price of $1 million) closed on April 28,    2016.

   

YOU On Demand will have an approximate 9% ownership stake in Frequency Networks,    Inc.  For a more detailed summary of the material provisions of the Frequency    SPA and the JV Agreement, see YOU On Demand's current report on Form 8-K, which has    been filed with the U.S. Securities and Exchange Commission ("SEC") at www.sec.gov.

   

Bruno Wu, Chairman of YOU On Demand, commented,    "Today's partnership announcement with Frequency is the first of what I hope to be    many business development initiatives to come that should begin supporting the    framework of our growth plan as well as the pledge to be more regularly and openly    communicative.  With Frequency and YOD's now multi-faceted partnership, YOU On    Demand is reimagining, sharpening and expanding its fundamentals and original scope    in three significant ways: 1. Moving from a pay only model to a pay, free and    commerce content model which will be the cornerstone of establishing the world's    premier mobile-based multimedia, social networking & e-commerce-enabled network,    2. Broadening its geographical user base beyond China to become a true global brand and, 3. Moving from the    existing user base of several million to an addressable user base of several    hundred million users globally by the end of 2016."

   

Frequency CEO Blair Harrison stated, "We're    thrilled to be partnering with YOU On Demand.  The creation of the Frequency    Asia JV is a great opportunity to leverage YOD's existing distribution and operations    to accelerate the expansion of our platform and programming to cable, OTT and mobile    operators in region.  YOD's participation in our financing is a strong indicator    of the value of Frequency's platform and business model."

   

About YOU On Demand Holdings, Inc. (http://corporate.yod.com)

   

YOU On Demand (NASDAQ: YOD) is a leading multi-platform entertainment service    company delivering premium content, including leading Hollywood movie titles, to customers across China via Subscription Video On Demand and Transactional Video    On Demand. The Company has secured alliances with leading global media operators and    content developers.  YOU On Demand has content distribution agreements in place    with many of Hollywood's top studios including Disney Media Distribution,    Paramount Pictures, NBC Universal and Twentieth Century Fox Television Distribution,    Miramax, as well as a broad selection of the best content from Chinese filmmakers.    The Company has a comprehensive end-to-end secure delivery system, governmental    partnerships and approvals and offers additional value-added services. YOU On Demand    has strategic partnerships with the largest media entities in China, a highly experienced management team with international    background and expertise in Cable, Television, Film, Digital Media, Internet and    Telecom. YOU On Demand is headquartered in both New York,    NY and Beijing, China.

   

About Frequency (http://www.frequency.com)

   

Frequency is a cloud-based internet video service that aggregates and    distributes video from thousands of the world's top providers, including the leading    TV and Multi-Channel Networks, and individual creators. TV, mobile and over-the-top    operators use Frequency to deliver a complete internet video service to their    subscribers. With one simple integration, operators have access to Frequency's    comprehensive portfolio of licensed content, and a fully featured video platform,    including real time personalization. Frequency is now powering next-generation    consumer video applications for operators on set-top boxes, mobile devices and the    web. Frequency was founded by Blair Harrison in    Los Angeles in 2010.  Harrison previously    founded FastTV, an early internet video search site, and was CEO of online video    entertainment site IFILM, sold to Viacom in 2005.

   

Safe Harbor Statement

   

This press release contains certain statements that may include "forward looking    statements." All statements other than statements of historical fact included herein    are "forward-looking statements." These forward looking statements are often    identified by the use of forward-looking terminology such as "believes," "expects" or    similar expressions, involve known and unknown risks and uncertainties. Although the    Company believes that the expectations reflected in such forward-looking statements    are reasonable, they do involve assumptions, risks and uncertainties, and these    expectations may prove to be incorrect. You should not place undue reliance on these    forward-looking statements, which speak only as of the date of this press release.    The Company's actual results could differ materially from those anticipated in these    forward-looking statements as a result of a variety of factors, including those    discussed in the Company's periodic reports that are filed with the Securities and    Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to    the Company or persons acting on its behalf are expressly qualified in their entirety    by these factors. Other than as required under the securities laws, the Company does    not assume a duty to update these forward-looking statements.

   

CONTACT:
    Jason    Finkelstein                                       
    YOU On    Demand                                       
    212-206-1216                                                             
    jason.finkelstein@yod.com
                                      
    @youondemand

    corporate.yod.com

   

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/you-on-demand-to-form-joint-venture-with-la-based-frequency-networks-300261701.html

   

SOURCE YOU On Demand Holdings, Inc.

 

 
    Source: PR Newswire (May 3, 2016 - 9:14 AM EDT)
   
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