BEIJING, Nov. 25, 2011 /PRNewswire-Asia-FirstCall/ --
China Mass Media Corp. ("China Mass Media" or the "Company") (NYSE:
CMM) announced today that its three-year advertising agency
contracts with China Central Television ("CCTV") for the "Daytime
Advertising Package" and "Television Guides" program shall not be
renewed at their expiration on December 31,
2011. Consistent with CCTV's current practice, 2012
advertising rights for the "Daytime Advertising Package" were
offered for bidding at the non-prime time advertising auction event
held by CCTV on November 22, 2011,
and the Company did not secure the winning bid. CCTV has also
decided to cancel the "Television Guides" program at the end of
2011. For the years ended December 31,
2009 and 2010 and the nine months ended September 30, 2011, revenues generated from these
two programs amounted to RMB158.8
million, RMB109.0 million, and
RMB68.9 million, representing 37.1%,
42.5%, and 40.5% of the Company revenues in those periods,
respectively. The loss of revenues from the Daytime Advertising
Package and Television Guides program is expected to have a
significant impact on the Company's results of operations in
2012.
Mr. Shengcheng Wang, Chairman and Chief Executive Officer of
China Mass Media, commented, "We will continue to seek additional
quality advertising time slots to improve our portfolio of media
resources. We recently acquired the advertising right to the "All
Day Classic Package" program on CCTV-8 for 2012. CCTV-8 is the only
national TV drama series channel in China and is ranked third among all television
channels in China in terms of
audience share in 2009, according to the 2010 China TV & Radio
Yearbook. We also aim to diversify our revenue sources and
strengthen our advertisement and TV series production
services."
About China Mass Media Corp.
As a television advertising company in China, the Company provides a full range of
advertising services, including advertising agency services,
creative production services, public service announcement
sponsorship services and other value added services. The Company
currently offers approximately 41 minutes of advertising time slots
per day on CCTV Channels 1, 2, and 4. CCTV is the largest
television network in China. The
Company has produced over 400 advertisements and has won a number
of prestigious awards in China and
across the world, including the "Gold World Medal" at The New York
Festivals® International Television & Film Awards. For more
information, please visit http://www.chinammia.com.
For further information,
contact:
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China Mass Media
Corp.
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Julie Sun
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Chief Financial
Officer
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6/F, Tower B, Corporate
Square,
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35 Finance Street Xicheng
District
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Beijing, 100033
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P. R. China
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Phone:
+86-10-8809-1050
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Email: juliesun@chinammia.com
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Christensen
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Tip Fleming
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Phone: +852-2117-0861
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Email: tfleming@christensenir.com
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Teal Willingham
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Phone: +852-9827-3632
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Email: twillingham@christensenir.com
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SOURCE China Mass Media Corp.