China Mediaexpress Holdings NYSE: CCME runs the largest television advertising network on express buses that run between cities in China. China Mediaexpress makes money by selling air time to advertisers to play videos on the televisions installed on the intercity buses. The company has entered a series of long term agreements, 5-8 years in length, with many of bus operators. Through these agreements, China Mediaexpress pays a fee to the bus operators to install their televisions and control systems with the bus.
For the full year 2009, the company reported a total revenue of $96M and a net income of $47M.
The growth of China's middle class increases the ability for more of the Chinese population to pay for intercity travel. In addition, many workers continue to leave their families in certain cities to find work in growing cities. This means that workers have an increased desire to travel between cities in order to visit their family. The continued rise in this bus travel increases the amount of advertisement space China Mediaexpress can sell.
China Mediaexpress competes directly with a series of other bus networks. Most of them are much smaller than China Mediaexpress. In particular, these companies include: