BEIJING, Oct. 26 /PRNewswire-Asia-FirstCall/ -- Charm Communications Inc. (Nasdaq: CHRM) ("Charm" or the "Company"), a leading advertising agency in China, today announced that it has successfully renewed its exclusive agency agreement with Tianjin Satellite TV for advertising rights throughout 2011. Charm and Tianjin Satellite TV have also announced a new long term strategic joint venture to produce live event content and reality shows which will be aired on Tianjin Satellite TV, with advertising revenues from these shows being shared by both parties. Charm expects the joint venture to begin generating advertising revenue from these shows in 2011.
Under the terms of the advertising rights contract, Charm has exclusive rights over all hard advertising time and branded content sponsorship opportunities on Tianjin Satellite TV until the end of 2011. This will be the third year of operations with Tianjin Satellite TV for Charm. During the period of cooperation, Tianjin's Satellite TV's ranking among satellite channels has improved from 12th to 6th, significantly enhancing advertising revenues. Charm has worked closely with Tianjin Satellite TV to optimize its advertising client mix, help enhance the attractiveness of its programs, expand its viewer base and achieve higher ratings.
Mr. He Dang, founder, chairman and CEO of Charm said, "We are delighted to extend our exclusive advertising relationship with Tianjin Satellite TV into its third year. We look forward to continuing our partnership with Tianjin Satellite TV to further build its strong brand and extensive program portfolio within our Media Investment Management business."
Commenting on the JV with Tianjin Satellite TV, Mr. Dang added, "We are also very excited to launch our first venture into content production with one of China's leading TV stations. With the increasing popularity of live events and reality shows in China and the high potential for branded content and embedded advertising, we are confident that this strategic initiative will work effectively alongside our existing advertising business and create additional revenue streams for the Company."
Charm Communications Inc. (NASDAQ: CHRM) is a leading advertising agency in China. Charm operates its business under three brands: Charm Advertising, Charm Interactive, and Shangxing Media. Under the Charm Advertising and Charm Interactive brands, Charm offers integrated advertising agency services from planning and managing advertising campaigns to creating and placing advertisements. Under the Shangxing Media brand, Charm has established a portfolio of television advertising media resources through its exclusive arrangements with premium national television channels, which include not only advertising time but also opportunities for placing branded content. Charm's clients include well-recognized brand names in China across many industries, as well as emerging domestic leading brands. In January 2010, Charm formed a joint venture with international 4A advertising group Aegis Media, its strategic investor, to operate its brand "Vizeum" in China. In October 2010, Charm also formed a joint venture with Wasu Digital Group to operate all advertising-related businesses across Wasu's IPTV, 3G mobile TV and broadband TV network platforms. For more information please go to http://ir.charmgroup.cn .
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SOURCE Charm Communications Inc.