You On Demand Inc. (CBBD) strikes deal with Warner, stock shoots up
Posted on: June 29th, 2011Written by:
You On Demand Inc. (OTCBB: CBBD) shares skyrocketed 17.4% Wednesday to 11.5 cents, a day after signing a new deal with Warner Bros. Volume for the stock topped 10.1 million shares in late Wednesday trading, in contrast with just over a 888,000-share daily average.
A Reuters story Tuesday noted that the Shanghai-based company has agreed with Warner Bros Entertainment’s local joint venture to offer pay per view movies on its newly launched online paid content platform, Youku said on Tuesday.
Under a three-year agreement with Warner Bros, Youku will add 400 to 450 Warner Bros movies to its Youku Premium library.
“People are increasingly willing to pay for high-quality content, and we take the growth of Youku Premium as a sign that the market is improving for paid services,” Dele Liu, Youku’s Chief Financial Officer, was quoted as saying in the Reuters piece.
Youku Premium, officially launched on Tuesday, began beta testing in October 2010. Since then, the service has processed 200,000 paid transactions for its library of more than 300 movies and 3,880 educational programs.
