Multi-screen measurement firm Rentrak Corporation has announced a joint venture to measure audiences in the People's Republic of China; and has released Q4 and full-year results showing continued rapid growth in its Advanced Media and Information (AMI) business.
Rentrak has partnered with Chinese consumer and media research company Sinomonitor for the Beijing-based joint venture, Sinotrak, which has been awarded a licence by the Chinese Government. The new company will measure ‘all forms of video screens from digital devices in China’, starting with ‘linear’ TV through set-top-boxes. Sinomonitor's syndicated database products are used as a currency in media planning in the country.
Rentrak says the JV, which uses software from its US service TV Essentials, is ‘the first company ever to be approved by the government of China to deliver census-level TV viewing information combined with advanced targeting capabilities across the entire country’. Users will be able to buy ads on the basis of advanced demographics and product usage information, and will get ‘more granular and more stable ratings’.
According to recent figures, China has 1,815 TV stations and around 155 million digital set-top-boxes. Michael Wen, CEO of Sinomonitor comments. ‘China, as the biggest TV market in the world and the engine for global growth, needs 21st century measurement for TV viewing.’ Rentrak CEO Bill Livek says the deal will help to demonstrate ‘the analytic power that actual census-level TV usage information across multiple viewing platforms delivers to networks, stations, advertisers and their agencies.’
Rentrak’s fiscal fourth quarter and full year results
for the periods ending March 31, 2012 show a now-familiar pattern with revenues from its AMI wing growing as its Home Entertainment business declines. Assuming a continuation of recent trends, this may be the year in which the former becomes the larger business. Total consolidated revenue for the fourth quarter of fiscal 2012 was steady at $24.6m (Q4 2011 $24.7m), masking a rapid rise in AMI revenue (up 26% to $11.6m) and a steep decline in Home Entertainment (down 16% to $13.0m).
The TV Essentials business grew 90% in the fourth quarter, and Livek says the future of the firm’s television measurement business is ‘very bright’. He affirms: ‘We are successfully delivering on our promise to grow our information businesses, and have significantly changed Rentrak's financial profile by strategically deploying the cash generated from our Home Entertainment business to develop, enhance and deliver our AMI services to the marketplace.’
Quarterly revenue from the other AMI brands, Box Office Essentials and OnDemand Everywhere, grew by 10% and 14% respectively, compared with Q4 2011, while full revenue revenue for these was up 15% and 6% respectively.
Web sites: www.sinomonitor.com