Vietnam media giant could lose $20 mln as YouTube pulls plug on deal

By Phuong Dong   March 8, 2019 | 01:00 pm GMT+7
Vietnam media giant could lose $20 mln as YouTube pulls plug on deal
Yeah1 Group shares plummeted on Monday following Youtube’s announcement, losing 7 percent. Photo by Shutterstock/BigTunaOnline

Digital media conglomerate Yeah1 is set to lose 28 percent of future revenues after YouTube unilaterally terminated its content hosting agreement with it.

The company's financial statements for 2018 showed that activities connected to YouTube generated around VND462 billion ($19.93 million) for Yeah1, or nearly 28 percent of its revenues.

Profit after tax from these activities were worth VND92 billion ($3.9 million), accounting for more than half of its total profits. 

The termination came after YouTube claimed SPRINGme Pte. Ltd, a Thai multichannel network (MCN) in which Yeah1 owns 16.93 percent had violated its policies with some of its channel management activities.

Yeah1 Group shares plummeted on Monday following Youtube’s announcement, losing 7 percent. The share fell by 7 percent each in the next two trading sessions too. 

Yeah1 started offering entertainment services combined with advertising after becoming YouTube's MCN partner in 2015.  

An MCN acts as an intermediary connecting creators of video content and YouTube for a cut. Content creators in return receive benefits such as copyright protection, income tax support, access to IP licensed contents to develop new products, and optimized advertising. 

For Yeah1, views from Vietnam account for nearly 73 percent of total views but only contribute about 18 percent of revenues. The rest comes from ad revenues generated in 150 other countries, with the U.S., Germany and Canada being the main contributors.

Founded in 2006, Yeah1 is Vietnam's largest MCN ecosystem, operating TV channels, movie studios, YouTube networks, and digital news.

It was also the first media company to go public, listing on the Ho Chi Minh Stock Exchange (HOSE) last June.

 
 
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