1. China’s Pay-TV Market Overview
China has a massive pay-TV market expected to grow to 313 million homes by 2020
Future growth driven by increased penetration from 48% of homes in 2012 to 64% by 2020
Cable is the dominant platform for pay-TV serving 240 million homes by 2020 driven by urbanization
DTH was launched in 2011 primarily serving rural viewers but expected to have rapid growth to 48 million homes by 2020
IPTV will have steady growth million from 10 users in 2012 to over 25 million by 2020 leveraging telco network growth
Source: Media Partners Asia

2. Overview of SPENA’s Operations in China
SPENA has been actively pursuing business opportunities in China
AXN has a license to broadcast to 3 to 5 star hotels and foreign compounds
Currently distributed to 77k rooms
The hotel signal is distributed by satellite by CTV and redistributed by its 31 local provincial distributors
AXN also has a weekly 60 minute timeblock reaching 49 million households through the following stations:
The timeblock mainly includes reality shows and aired Top 20 Countdown and Wipeout last year and is currently showing Wipeout
Animax mobile has a deal with Wasu Media & Network Company, Ltd., one of the eight licensed content providers in China
Wasu in turn has contracted with China mobile, China Unicom and China telecom to distribute the Animax mobile content
SPT distributes a variety of content to many of the leading Chinese media businesses
CCTV6, the only national movie channel, takes 25 to 30 of SPE’s latest current titles plus some library titles
Shanghai Movie Channel, Phoenix and some CCTV channels take small packages for reruns on basic/free TV
10 new media deals for VOD and SVOD with several platforms including Qiyi, Sohu, Voole, Best TV, Wasu
Action/thriller titles are the most popular genre while dramas and comedies are less popular
SPENA is currently evaluating the Chinese media market for additional opportunities including IP related ventures
Beijing TV
Changsha TV
Chongqing TV
Dalian TV
Guangzhou TV
Guizhou TV
Harbin TV
Hebei TV
Hebei Tangshan TV
Hefei TV
Jiangsu TV
Jiangxi TV
Jilin TV
Lanzhou TV
Liaoning TV
Shaanxi TV
Shandong TV
Shenzhen TV
Tianjin TV
Wuhan TV
Xinjiang TV
Zhejiang Shaoxing TV

3. Vietnam Pay-TV Market Overview
Vietnam’s pay-TV market has grown rapidly to about 4 million subscribers
New regulations effective May 2011 have adversely impacted the attractiveness of Vietnam’s pay-TV environment
Key elements of this legislation include mandatory 100% localization of channels, editing by an approved censor and advertising insertion requirements
To comply with the new regulations, foreign pay-TV channels such as SPENA have been required to contract with local agents
Source: Directorate of Broadcasting and Electronic Information, MIC

4. Overview of SPENA’s Operations in Vietnam
SPENA has a presence in Vietnam, but business opportunities there are limited due to the new regulations
AXN and Animax currently have 396k and 211k subscribers, respectively
SPENA distributes its channels through its local agent Q.net
Q.net holds SPENA’s license and distributes AXN and Animax to the local operators including:
SPT distributes a limited amount of content to some of the free-to-air Vietnamese channels
Action/thriller titles are the most popular genre
SPENA is currently evaluating the Vietnamese media market for additional opportunities including mobile and IP related ventures but due to the hostile regulatory environment, economically attractive opportunities are limited
BTS
CEC
HTVC K+
Phan Thiet
SCTV
Tien Giang
VCTV
Vinh Long
VNPT (VASC)
VTC