20-F: Phoenix New Media Signs Program Resources License Deal

Phoenix New Media (Hong Kong) Company Limited has entered into a Program Resources License and Cooperation Agreement with Phoenix Satellite Television Company Limited, granting rights to use program content across various platforms.

Summary

• Phoenix New Media (Hong Kong) Company Limited (Party B) has entered into a Program Resources License and Cooperation Agreement with Phoenix Satellite Television Company Limited (Party A).
• The agreement, effective November 5, 2025, grants Party B the exclusive right to use Party A's program resources within the Chinese Mainland for the Internet Field.
• Party B also obtains non-exclusive rights for the Transportation Field and Artificial Intelligence Field within the Chinese Mainland.
• The license term is for two years, commencing August 24, 2025, and ending August 23, 2027.
• Party B will pay an annual service fee of RMB 55,000,000 to Party A.
• Party A retains rights to its cable TV networks, IPTV, OTT, and other large-screen TV terminals, as well as specific brand promotion content on social media platforms.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive development, securing key content rights and expanding into new fields, though the significant annual fee warrants close monitoring of its impact on profitability.

Positives

• Secures valuable program content rights for Phoenix New Media, enhancing its media offerings.
• Expands the scope of licensed content usage to include AI and transportation fields.
• Establishes a clear two-year licensing term, providing operational certainty.
• The agreement is structured on principles of equality and mutual benefit.

Negatives

• The annual service fee of RMB 55,000,000 represents a significant cost.
• Phoenix Satellite Television Company Limited retains significant rights, potentially limiting Phoenix New Media's exclusive control over certain content aspects.

Risks

• The agreement is subject to the laws of Hong Kong, which may differ from other jurisdictions.
• Potential for disputes arising from the interpretation or performance of the agreement.
• The agreement excludes music, segments, and materials licensed by third parties to Party A, and segments and materials not produced by Party A.
• Party B must ensure that any sub-licensed third parties respect Party A's Intellectual Property Rights and do not use program resources outside the licensed field.

Future Outlook

The agreement provides Phoenix New Media with access to valuable program resources for two years, which is expected to support its content strategy and user engagement across its digital platforms.

Industry Context

StockSavvy.ai notes that this agreement aligns with the trend of media companies leveraging their content libraries across new platforms, including AI and specialized fields like transportation, to create diversified revenue streams and maintain competitive relevance.

Related Party Transactions

• Program Resources License and Cooperation Agreement between Phoenix Satellite Television Company Limited and Phoenix New Media (Hong Kong) Company Limited.

Stakeholder Impact

• Shareholders of Phoenix New Media: Potential for enhanced content offerings and user engagement, which could positively impact revenue and market position.
• Content Creators/Licensors: The agreement reinforces the value of intellectual property in the media landscape.
• Advertisers: Access to a broader range of content may lead to more engaging advertising opportunities.

Next Steps

• Phoenix New Media (Hong Kong) Company Limited to utilize the licensed program resources across the Chinese Mainland for the Internet Field, Transportation Field, and Artificial Intelligence Field.
• Party A and Party B to adhere to the terms and conditions outlined in the agreement, including intellectual property protection and sub-licensing restrictions.
• Both parties to fulfill their respective obligations regarding service fees and cooperation as stipulated in the agreement.

Key Dates

Keywords

Phoenix New Media, Phoenix Satellite Television, Program Resources License, Cooperation Agreement, Media Content, Intellectual Property, Chinese Mainland, Internet Field, Transportation Field, Artificial Intelligence Field