Xinhua China, a US-based holding company which owns a majority interest in a Chinese company that holds a national license to distribute books in China, has formed a wholly owned subsidiary to focus on the sale and distribution of digital media content online.
This online merchandizing called Beijing Joannes Information Technology Company will launch geezip.com on October 1, 2006 and will sell e-books, e-audio and e-music.
Xinhua China says its decision to invest in online digital rights reflects the maturing of the Chinese Internet market in recent years.
According to a report by the A.C. Nielsen Consulting Group in November 2005, 63% of Internet users in China said they had shopped online, and 56% of that group said they had bought reading material that way. About 24% of online shoppers said they had bought audio-visual products.
To assist in the launch and management of the Company's digital media strategy, Peter Shandro, currently a director of Xinhua China, will assume the role of VP Business Strategy. Additionally, CFO Clement Wu will also become the Secretary and Treasurer of the company.