NEW YORK, Feb. 29, 2016 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or "YOD" or the "Company"), a Video On Demand ("VOD") service provider delivering Hollywood movies & premium content to TV and mobile screens in China, does not view its business to be impacted by the Administrative Provisions on Online Publishing Services ("New Publishing Services Rules") issued by China's Ministry of Industry and Information Technology ("MIIT") and the State Administration of Press, Publication, Radio, Film and Television ("SAPPRFT") on February 15, 2016.
On February 15, 2016, MIIT and SAPPRFT released the codified New Publishing Services Rules, under which foreign entities and Sino-foreign joint venture organizations continue to be prohibited from operating online publishing services and engaging in original or adapted content distribution, including but not limited to: text, images, games, animation, audio records and videos. The New Publishing Services Rules also emphasize regulation of content publication through online mediums. The effective date for the announced regulation is March 10, 2016. Based on management's assessment, the New Publishing Services Rules will not have an impact on YOU On Demand's business operations or financial position.
YOU On Demand, through its domestic entities, has historically adopted processes that follow Chinese laws and regulations for online publishing including obtaining the proper content approval from SAPPRFT, or its designated agencies, to ensure that the relevant government clearances have been obtained for any and all content distributed by the Company. Bruno Wu, Chairman of YOU On Demand, commented: "The codified regulation is not introducing any new rules for the media industry in China. It has simply re-affirmed that YOU On Demand has been operating correctly and in compliance by implementing consistent business practices that adhere to the SAPPRFT approval process. As the Company moves forward to develop its strategy from a content distribution business to a fully-integrated media services ecosystem, we believe that these strengthened regulations will evolve into new business opportunities for YOU On Demand."
Mingcheng Tao, CEO of the Company, stated: "YOU On Demand is not, and has never been, a company that exploits gray areas in the Chinese regulations and therefore, our business operations are not affected by announcements from government authorities on the implementation of rules that were already in place. We will continue to work within the guidelines mandated by SAPPRFT to ensure we remain compliant with industry rules and regulations and we will frequently review the Company's business practices to minimize our risks and maximize value for our shareholders."
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， 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.
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", "will", "may", "anticipate", "estimate", "project", "would", "could" or similar expressions or the negative of these terms, involve known and unknown risks and uncertainties. The forward-looking statements in this release include statements regarding the impact of the New Publishing Services Rules on the Company's operations or financial position, the continued compliance with applicable industry rules and regulations as well as statements regarding new business opportunities for the Company due to the strengthened regulations. 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 risk factors, uncertainties and other factors 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.
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