Manufacturing News

China's Shanda in talks with telcos to provide broadband content

The 'EZ Pod' system is an entertainment gateway that connects to a user's PC or television and gives them access to a broad mix of content such as video games, downloadable movies, karaoke, news and television

BEIJING (AFX) - Online game company Shanda Interactive Entertainment Ltd is currently in talks with China's telcom operators about providing them with content for their rapidly expanding broadband businesses, Shanda's head of investor relations Donglei Zhou said.

'We're actually pursuing a very close partnership with telecom operators,' she said at a business conference in Beijing.

The content would be similar to that offered on Shanda's 'EZ Pod' entertainment platform, which is a key element of the company's transition from an online games company to a diversified media and entertainment provider, she said.

The 'EZ Pod' system is an entertainment gateway that connects to a user's PC or television and gives them access to a broad mix of content such as video games, downloadable movies, karaoke, news and television.

Since the December launch of the 'EZ Pod', 179,000 sets have been pre-ordered from Shanda. As of Feb 8, PC manufacturers signed purchase agreements to pre-order around 660,000 sets, according to information provided in Shanda's fourth quarter earnings report.

Shanda's 2005 net profit dropped by 72.9 pct to 165.3 mln yuan, due to the switching of major massively multi-player online role playing games to a free-to-play model, which entailed increased sales and marketing costs. It also cited product development costs related to both content and the 'EZ Pod.'



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