China Mobile and UMeWorld Bring UMFun to the World’s Largest K-12 Educational Platform
HONG KONG--(BUSINESS WIRE)--UMeWorld Limited (OTCQB: UMEWF) is very pleased to announce that China Mobile will market UMFun to 9 million paid subscribers on its Kindergarten – Grade 12 educational platform in the Guangdong Province beginning on Monday, July 21, 2014. This K-12 educational platform services 90% of the schools in the Guangdong Province and is widely used by teachers, parents and schools. China Mobile generated US$90 million in sales from the K-12 educational platform in the Guangdong Province in 2012, and approximately US$112 million from the same province in 2013 and is projected to generate US$132 million in 2014.
Established in 2003, China Mobile’s K-12 educational platform is the world’s largest subscription-based communication platform used mainly by teachers, parents and schools throughout many provinces in China. Currently, there are over 40 million paid subscribers using this K-12 educational platform on China Mobile’s network, which generated over US$800 million in sales, with the majority of sales directly related to various value-added services in 2013.
UMFun is a value-added service that will be co-branded with China Mobile under a monthly subscription revenue model along with an initial three month free trial. China Mobile will share UMFun revenue generated by its K-12 educational platform with UMeWorld and all expenses related to distribution and marketing will be borne by China Mobile. Furthermore, a successful launch in the Guangdong Province will accelerate planned expansion to service clients in other provinces, according to China Mobile.
Michael Lee, President and CEO commented, “It is a privilege to be offered the opportunity of becoming one of China Mobile’s few strategic partners. This agreement accelerates our market penetration and will provide a substantial revenue stream to the company in 2015 and beyond. Assuming a 20% conversion rate (as estimated by China Mobile), the company would be expected to generate 2 million paid subscribers in Guangdong Province alone, which translates into US$38.40 million gross sales (before profit sharing with China Mobile) in 2015. Our goal is to capture 10 million paid China Mobile subscribers throughout their system and to generate US$192 million gross sales (before profit sharing with China Mobile) in 2016. We intend on leveraging this China Mobile agreement with other carriers and to expand into other provinces not covered by China Mobile.”
The K-12 education system in China is the largest in the world, comprising 230 million students. UMeWorld is on track to becoming a leading educational service provider in China. UMeWorld is also committed to becoming China’s largest provider and repository of e-portfolios for students.
About China Mobile
China Mobile is the world’s largest mobile service provider by network scale and subscriber base, serving over 767 million customers. China Mobile is listed on both the New York and Hong Kong Stock Exchange and is a constituent stock of the Hang Seng Index in Hong Kong.
UMeWorld's mission is to facilitate the interaction between people -- "You" and "Me," -- through its digital platforms. Existing to date are, UMeLook.com, an online video platform focused on bringing foreign video content to China and UMFun.com, the only cloud-based, patent-pending, adaptive learning and assessment platform in China that can intelligently analyze and adapt to a student’s academic performance, along with supplying the delivery of proprietary educational items based on individual learning needs.
Forward Looking Statement
This release may contain projections and other forward-looking statements that involve risks and uncertainties. Forward-looking statements are projections reflecting management's judgment and assumptions based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These forward-looking statements can be identified by terminology such as “will,” “expect,” “anticipate,” “future,” “intend,” “plan,” “believe,” “estimate,” “confident” and similar statements. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties that may cause actual results to differ materially from expectations. Future performance cannot be assured. Readers are referred to the documents filed by UMeWorld with the Securities and Exchange Commission (SEC), specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.
Potential risks and uncertainties include, but are not limited to: whether our revenue guidance for UMFun can be achieved, whether a digital strategy can be achieved and the risks that there are uncertainties and matters beyond the control of management, and other risks outlined in the Company’s filings with the U.S. Securities and Exchange Commission.
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