KIT digital to launch KIT China
Cloud-based video management solutions for multi-screen delivery provider KIT digital has signed a letter of intent to establish KIT China in partnership with Morse Chen, founder and former CEO of Greater China’s first premium content IP video portal, Webs-TV (now called Yam.com). KIT digital plans to launch KIT China officially in the beginning of the first quarter of 2011.
KIT China is expected to become the vehicle through which KIT digital will manage its business in the Greater China area (China, Taiwan, Hong Kong and Macau), including service of existing clients in the region, deployment of new clients, customer-driven customisation of its VX-one software solutions, and the establishment of local channel and re-selling partnerships. KIT VX-one, the company’s family of end-to-end software platform solutions, enables enterprise clients to acquire, manage and distribute video assets across the three screens of the personal computer, mobile device, and IPTV-enabled TV set.
Chen would serve as president and chief executive officer of KIT China, bringing with him 19 years of successful entrepreneurship and business creation, and more than a decade of IP video experience.
KIT China is being established to enhance KIT digital’s already strong presence in Asia (and its market position in Southeast Asia, the Indian subcontinent and Australasia), where its clients include Astro, CNBC, Express News, ESPN Star, ETV, MediaCorp, Google, NDTV, Reliance MediaWorks, Saab, Sahara, Sanitarium, Sensis, Singapore Telecom, Spirit of Tasmania, Suzuki, Tabcorp, Telstra, TV9, VTV and ZeeTV.
“The formation of KIT China demonstrates our commitment to the world’s highest growth market and our determination to be the global leader in next generation video management solutions,” said Kaleil Isaza Tuzman, chairman and CEO of KIT digital.
Isaza Tuzman described Morse as “a true pioneer of online video distribution of premium content in Greater China, bringing his company through the life cycle of start-up phase, profitable growth and eventual sale.”
According to Cisco’s June 2010 Visual Networking Index, IP traffic in Asia Pacific is expected to grow at a compound annual growth rate of 35 per cent for the foreseeable future. “We expect KIT China to substantially enhance our ability to meet this growing customer demand,” said Ashish Mukherjee, KIT digital’s head of Asia.
Under the letter of intent’s proposed terms, KIT digital plans to invest $3.0 million in the formation and launch of KIT China. The terms of the agreement call for KIT digital to retain the vast majority shareholding in KIT China while assuming a minority ownership stake in Xun-Jia Technology, a Chengdu-based digital media development company controlled by Chen. The associated transactions are expected to close by January 31, 2011.