It was a big deal day for You On Demand Holdings, Inc. (NASDAQ:YOD), a China-based video on demand service provider. The company posted an update sharing the news of its agreement with Twenty-First Century Fox Inc (NASDAQ:FOXA). The shares of the company surged by 20% to close the session at $2.46.
Technical analyst have identified strong buy signals in FOXA.
How are market trends affecting YOD? Find out here!
Commitment To Deliver Best Content
Through this licensing agreement with Twenty-First Century Fox, You On Demand Holdings, Inc. (NASDAQ:YOD) will get access to the former’s broad library of feature films. As a result, Chinese subscribers of the company will be able to see a wide range of movies on their mobile. Digital cable, IPTV services, and over-the-top. Some of the movies that You on Demand will make available to its viewers are ‘A-team’, ‘Black Swan’, ‘Natalie Portman’, ‘Master and Commander’, ‘Speed’ and ‘Unstoppable’.
The company’s Chairman, Shane McMahon stated that the licensing agreement with Twenty-First Century Fox shows the company’s deeper commitment to its viewers to deliver the best of the class in content to them. Also, McMahon added that they are excited to work with the company in China and will make available the added offering on all platforms of YOU on Demand.
Others Too Eye China
You On Demand Holdings, Inc. (NASDAQ:YOD) is already delivering a range of Hollywood flicks and premium content to TV and mobile screens. The deal marks an attempt by Twenty-First Century to gain foothold in China, a region abundant with potential viewership. It is not just Twenty-First Century Fox Inc (NASDAQ:FOXA), but competitors such as Time Warner Inc (NYSE:TWX)’s HBO too have signed such deals in order to explore the opportunities in China. Towards late last year, Time Warner Inc’s HBO has reached an agreement with Tencent Holdings Ltd (OTCMKTS:TCTZF) to broadcast its movies and TV dramas through he latter’s online platform.
Thus, the move by You On Demand Holdings, Inc. (NASDAQ:YOD) and Twenty-First Century Fox shows the move towards setting up an official distribution channel, where piracy is at its peak.
Technicals
It has been a story of failed bulls regarding You On Demand Holdings, Inc. (NASDAQ:YOD) over the last few years. The bear market continues but the bearish momentum has been showing signs of exhaustion for a long time now. From the final bottom of $1 levels, registered in 2013, the stock had rallied to $7 and more but failed to make a higher high. The latest attempt to rally has faced major rejection from a confluence zone of resistances and that may keep the price in the band of $1-$3.50 for some more time.
