CDMTV



		4.6% In March 2007, VenFin co-invested in a B preference round of US$40 million in CDMTV Holding Company (CDMTV) in China for a 30.8% equity stake. The round was led by Milestone China II. VenFin’s total commitment is US$10 million, of which US$5 million was invested in March 2007 and US$5 million in July 2007.

CDMTV supplies advertising space on digital mobile television channels. The ad time is sourced from its network of state-owned city and provincial broadcasters, each of which enjoys a local monopoly on digital mobile broadcasting. The ad time is supplied to a wide range of vendors of consumer goods and services, either directly or through their advertising agencies. The TV channels are broadcast to LCD screens, principally located in buses.

In China the standards for the digital mobile TV industry have only recently been set by the government. Each city in China has been granted one frequency to broadcast mobile TV programming. While digitalmobile media is a relatively new channel of advertising, its wireless real-time broadcasting feature and captive viewing environment (e.g. in buses) have been increasingly attracting attention from advertisers. Currently TV and outdoor media combined account for over 84% of the total advertisement spending in China. It is expected that digital mobile media, being a hybrid of the two forms, will take market share away from both traditional TV and traditional outdoor media.

The future

CDMTV is at a start-up stage, but has the potential to become the largest digital mobile media advertising network operator in China. Currently its network reaches 26 cities in China, including Beijing, where the Olympic Games will be held in 2008.