THE LARGEST MARKET IN THE WORLD HAS AN UNTAPPED POTENTIAL FOR PREMIUM CONTENT
« Increasing middle class resulting in greater disposable income and demand for entertainment (e.g. movies, concerts, sporting events, etc.)
« Box office receipts were $2.7 billion in 2012 (up 28% from 2011)
« Only 20 standard-format foreign films allowed into China each year for theatrical release
« Flat screen TV sales exploding – 49 million LCD TVs sold in 2011 alone
« China still has large ARPU growth opportunity with an average monthly subscription fee per user of $4.00, equivalent to 0.1% of average urban household income, compared with that of 1.5% in the U.S.
« In 2010, $6 billion spent on pirated DVDs in China (3x the Chinese box office)