A8 Digital Music Group
Hong Kong, April 14, 2009 AEST (ABN Newswire) - Since its establishment in year 2000, A8 Digital Music Group (HKG:0800) is into software development for the mobile phone industry. In year 2004, as mobile phone technology advances, the company moved into digital music distribution via mobile phone devices. The company has 28 provincial sales offices throughout China and has strategic partnerships with over 1000 websites as sales and marketing channels. The company works closely with international renowned mobile brand names, including Nokia in developing a total music solution that is capable for easier and faster music streaming, and more importantly unique personalised services. In FY 2008, the company revenue rise by an impressive 147% to RMB 706 million, Gross profit also rise by 107% to RMB 266 million.
In comparison to the Western Culture, the Chinese music industry is different in a way that, most of the younger generation actually prefer to download their favourite songs on to their mobile devices rather than computers. Capturing this emerging market has always been one of the main focuses in A8.
Apart from sourcing its content from domestic and international records companies, A8 also sources its music content from its interactive Internet UGC platform http://www.a8.com (User Generated Content). A8 has a rich music collection of contributions from over 10,000 artists and over 60,000 original independently produced music and songs. One of its UGC hit songs produced over 18 million downloads in year 2008. Its rich music collection and capability to source music content give A8.com a distinct marketing and price advantage over their competitors. In 2008, the sales generated by "User Generated Content" represented 38% of their total sales revenue.
A8 has also developed its proprietary software "A8 Box" to be embedded into mobile handset. A8 Box is a "jukebox" software which facilities subscribers to access A8's music and music related service directly from mobile handset. Compared with the traditional distribution platform, A8 Box has several advantages. Subscribers can have more direct and user friendly access to A8's service through A8 Box. A8 can cultivate higher customer loyalty through the more accessible A8 Box. Based on the data collected from A8 Box, the company can monitor and analyse specific mobile subscriber behaviour and adjust marketing strategies accordingly.
In the next two years, A8 targets to have 30 to 40 million new handsets with A8 Box embedded. Betty suggests that the A8 Box will definitely widen the service scope to A8 subscribers.
From May 2009, 3G technology is going to become available in China, the telecom industry is set to go through some major restructuring and reshuffle. However, with competition among telecos going to intensify, Betty expects that A8 shall be in a stronger position to diversify its sales channels with telecos.
Looking ahead, as the 3G market opens, the growth potential for A8 is infinite. It is expected that the 3G usage will surge up to 100 million by 2011. Large market with faster downloading speed will enable the company to offer more music and music related services to more customers in the soon coming future.
About Ms Betty Ho
Ms. Ho Yip, Betty is the Chief Financial Officer of the Company and an executive Director. Ms. Ho graduated from the University of Toronto in 1993, with a Bachelor's degree in Commerce. She was admitted as a member of the American Institute of Certified Public Accountants in 1997 and is a member of the Hong Kong Institute of Certified Public Accountants.
Ms. Ho has over 15 years of diversified experience in corporate finance, private equity, retail and operations. Ms. Ho was a director of Strategic Capital Group (HK) Limited, an e-commerce private equity firm, from 2000 to 2001. She held the position of Vice President of Corporate Development from 2001 to 2007 at Lorenzo Jewelry Limited, a wholly owned subsidiary of LJ International, Inc. (NASDAQ: JADE) and was responsible for financial planning, corporate finance, investor relations and matters relating to mergers and acquisitions of the group. She joined the Group in July 2007 as its Chief Financial Officer and was appointed as an executive Director on 9 November 2007. Ms. Ho currently oversees the accounting and financial matters of the Group.
Contact
Investor Relations
Investor Relations Department
Tel: +86-755-3332-6333
Email: ir@a8.com
Website: www.a8.com
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