Agreement frames Acorn’s partnership with one of the largest State-owned media and cultural conglomerates in China
SHANGHAI, China, November 20, 2018 – Acorn International, Inc. (NYSE: ATV) (Acorn or the Company) today announced that its subsidiary, Acorn Media Group, signed a cooperation agreement with influential media powerhouse SMG through one of its key content subsidiaries, DEG, paving the way for Acorn’s broad partnership with one of the largest State-owned media conglomerates in China.
Following the establishment of this partnership, Acorn and DEG intend to work together to provide cross-border resources to support Acorn’s influencer management business, Acorn Entertainment, which represents celebrity talent and brands in China to help grow and monetize their presence here, as well as Acorn’s content business, which monetizes through VOD or live streaming ticket sales, as well as e-commerce and other revenue channels.
Mr. Jacob A. Fisch, Acorn’s President and CEO noted, “I’m very excited to announce what I believe to be a truly landmark deal for us. For Acorn, it provides a wide range of new opportunities and media channels to bring both our talent and our content to Chinese audiences, with the support and partnership of a powerful conglomerate like SMG. In China, this kind of partnership brings legitimacy and sets us apart from other foreign competitors; a partnership like this is critical for achieving our goal of bringing together influencers, content and product marketing into a single platform, at scale.”
Among other things, the agreement between DEG and Acorn provides:
- DEG will provide the maximum number of media resources available to promote Acorn’s celebrity trips to China, including but not limited to (A) ensuring that Acorn’s celebrity clients will appear on DEG programs, news, talk shows, variety shows, and reality shows, and (B) arranging media and public relations interviews across applicable DEG internal medial channels;
- DEG will provide brand resources for Acorn, and Acorn will endeavor to provide certain relevant celebrities to produce commercial collaboration arrangements and achieve endorsement deals between such celebrities and brands;
- Acorn will from time to time endeavor to source singers and other performers for certain live events organized by DEG;
- DEG will cooperate with Acorn to facilitate the growth and monetization in China of mutually agreed emerging artists from anywhere in the world, including but not limited to providing proper media resources to promote such artists;
- DEG will be one of Acorn’s primary short form content distributors and will be responsible for securing the maximum number of media resources available to promote Acorn’s content. Simultaneously, DEG will source commercial deals for such artists.
- Acorn will actively promote DEG’s interactive communication in the culture circles of America and Japan and provide services and support for the overseas activities and expansion of DEG.
Robert Roche, Chairman and owner of Roche Enterprises, Ltd. (RE) and Chairman of Acorn notes: “As Chairman of Roche Enterprises, which has business interests spanning U.S., China, Japan, and elsewhere around the world, I am pleased to see this framework agreement in place. This partnership will provide tremendous opportunities to tap into RE’s global network, and help Acorn present its capabilities not only in China, but also in Japan and the U.S. This powerful network sets Acorn apart from competitors operating with only a pure China platform, on one hand, and also allows Acorn to team up with a powerful Chinese conglomerate to support US businesses in China, on the other hand – providing a winning combination.”
About Dragon Entertainment Group
Dragon Entertainment Group is a wholly-owned subsidiary of Shanghai Media Group, which manages and operates five specialty television channels and is also one of the largest content production company in China.
About Shanghai Media Group
One of the largest media groups in China, SMG’s businesses span a wide array of content and distribution, online and offline media, including: radio and TV networks, signal transmission, newspapers and magazines, drama and film production and distribution, OTT and streaming, IPTV, online and console gaming, digital advertising, home shopping and e-commerce, financial data and information services, children’s arts training, TV post-production services, live entertainment, tourism and cultural investments, etc.
About Acorn Entertainment
ATV Entertainment is a social media business that helps western sports and entertainment talent and a diverse range of brands develop a deep and meaningful impact in the Chinese market. ATV Entertainment provides a wide range of localized personal digital brand services, including social media and digital services for western talent and brands who seek to maximize their value in China. The company is a subsidiary of Acorn International. For more information, visit: www.acorninternationalgroup.com.
About Acorn International, Inc.
Acorn International is a leading marketing and branding company in China, leveraging a twenty-year direct marketing history to monetize brand IP, content creation and distribution, and product sales, through digital media in China. Previously the leading TV infomercial company in China, Acorn today has three divisions support its growth: 1) Product Division, 2) Content Division, and 3) Influencer Management Division.
In the Product Division, Acorn sells product primarily through e-commerce channels in China, as well as through offline distribution and outbound marketing. In the Content Division, Acorn monetizes content. Specifically, in the Content Division, Acorn has redirected its direct marketing know-how to digital media in China, launching Acorn Streaming, which is primarily focused on live streaming and pre-recorded video content creation and distribution. In the Influencer Management Division, Acorn brings, through the creation of digital social content, leading U.S. celebrity talent and brands to China, representing their in-country digital presence. For more information visit: www.acorninternationalgroup.com.
Safe Harbor Statement
This news release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “anticipates,” “believes,” “estimates,” “expects,” “future,” “going forward,” “intends,” “outlook,” “plans,” “target,” “will,” “potential,” and similar statements. Such statements are based on management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the Company’s control, including the duration and intensity of the US-China trade war, which may cause the Company’s actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties, or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.
Compass Investor Relations
Ms. Elaine Ketchmere, CFA