Network CN: “We can put screens where Focus can't”
Chinese digital out-of-home startup Network CN is reaching the sites that its giant rival Focus Media can't by forging close links with local government.
In a published interview, general manager Stanley Chu said that the firm was benefiting from its relationship with Beijing All Media and Culture Group (BAMC), a state-owned organisation which holds the city's outdoor broadcasting rights.
“We can access buildings that Focus cannot get into – like government buildings and banks – because BAMC is state-owned,” said Chu.
Network CN has 11,000 LCD screens in Beijing, mostly in the lobbies and elevator waiting areas of government buildings, apartment blocks, banks, hotels and hospitals.
But although the emphasis on these high-traffic areas is reminiscent of Focus's strategy, Network CN differs from its larger competitor in running live content from the state broadcaster CCTV, as well as ads.
The company is also deploying outdoor digital signage (pictured), including roadside LED panels and mega-sized LED billboards.
“Right now we are only set up in six cities: Beijing, Shanghai, Wuhan, Nanjing, Hangzhou and Qingdao. But we have media rights for a total of ten cities,” said Chu, adding that “we are focused on eventually covering all of China”.
However, he said that Network CN would try to moderate its growth in order to minimise the fees that it pays for advertising rights in each location: “In China, if you're too high-profile, you're just going to pay a higher price.”
Network CN, which is traded on the U.S. market with the ticker symbol NWCN, last year made $26.7m revenue – up from $4.4m in 2006 – although the cost of installing its digital-signage displays meant it still saw a net loss of $19.3m.
In February, the firm secured $50m in funding from Och-Ziff Capital to support its expansion.
www.ncnincorporated.com
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