(Yicai Global) June 2 -- CITIC Group Corp. and China Media Group, the controlling shareholders of CITIC Ltd. [HKG:0267] and CITIC Telecom International Holdings Ltd. [HKG:1883], are to establish an Internet television joint venture.
CITIC Group Corp. and China Media Group inked a framework agreement on the set up, funding and operation of China Mobile Multimedia Interactive Broadcasting and Television Network, an Internet protocol television technology developer, the two companies said on May 31. No detailed plans have yet been drawn up.
China has been slow to develop IPTV, which enables the streaming of online content, with the pace only picking up last year. At the end of 2015, there were almost 45.9 million IPTV subscribers, according to data from the Ministry of Industry and Information Technology. China Telecom Corp. [HKG:0728] and China Unicom Ltd. [SHA:600050] had more than 50 million subscribers at the end of last year, according to data collected by streaming media industry website lmtw.
Analysts say that IPTV is one of China Media Group's strengths, and while the three big telecom operators -- China Mobile Ltd. [HKG:0941], China Unicom and China Telecom -- are stepping up efforts to move into IPTV, broadcast rights are still held by China Media Group.