Mar 08, 2019 / 11:09
Youtube incident sends Yeah1 shares plummeting for fifth consecutive day
This resulted in a sharp decline in the company’s market capitalization, going down from VND7.6 trillion (US$324.31 million) to VND5.6 trillion (US$240.3 million), down VND2 trillion (US$85.34 million).
An incident with Youtube has caused shares of Vietnam’s leading entertainment group Yeah1 to plunge for five consecutive trading sessions through this morning, according to stock exchange data.
At the time of writing on March 8, Yeah1’ shares stood at VND170,600 (US$7.28), down 35% from VND245,000 (US$10.45) when the incident occurred on March 1.
This resulted in a sharp decline in the company’s market capitalization, going down from VND7.6 trillion (US$324.31 million) to VND5.6 trillion (US$240.3 million), down VND2 trillion (US$85.34 million).
Early in March, Youtube claimed SPRINGme Pte, a Thailand-based company, which is indirectly owned by Yeah1 with nearly 17%, had violated its policies regarding Youtube AdSense, the program that allows publishers on the video channel to place advertisements by third parties, which in turn generates revenue for the content provider.
Following the incident, Youtube announced that it would terminate all Content Hosting Services Agreements (CHSA) after March 31 with all Yeah1’s subsidiaries or investment companies with business activities related to Youtube Adsense.
The termination would apply to several of YEG’s multi-channel network (MCN) companies it has control over, such as Thailand-based SPRINGme, US-based ScaleLab, and organic Yeah1 Network Pte Ltd.
Currently, the Yeah1 Group management has said it is seeking further clarification with YouTube regarding this action, and actively working with the video hosting website to prolong the CHSA’s after March 31.
Nguyen Ngoc Hung, CEO of Yeah1 Network, said in 2018, Youtube AdSense business of Yeah1 contributed nearly US$1 million to its pre-tax profit, equivalent to 12.9% of the total.
According to Hung, in the worst scenario where YouTube would terminate CHSA with Yeah1, only revenue generated from channels owned by third parties would be affected, but not the group’s owned Youtube channels.
In 2018, total revenue generated from Youtube Adsense reached VND309 billion (US$13.3 million). Of the total, US$1.35 million was from its owned Youtube channels and US$11.95 million from those of third parties, however, profit margin of the former at over 50% is significantly higher than that of the latter at 8%.
Through the acquisition of ScaleLab in January, Yeah 1 has become one of the world’s top three largest MCNs. Therefore, the group plays a key role in managing and developing contents to support Youtube. The termination if happens would cause damage to both parties involved, Hung stated.
By acquiring ScaleLab, Yeah1 has increased the total monthly YouTube views under its umbrella to 6.9 billion, and total YouTube subscribers to 610 million throughout the world.
In a Facebook post, Yearh1’s Chairman Nguyen Anh Nhuong Tong has vowed to help Yeah1 focus on its core value, so that in the future the company would be immune to all challenges.
Illustrative photo.
|
This resulted in a sharp decline in the company’s market capitalization, going down from VND7.6 trillion (US$324.31 million) to VND5.6 trillion (US$240.3 million), down VND2 trillion (US$85.34 million).
Early in March, Youtube claimed SPRINGme Pte, a Thailand-based company, which is indirectly owned by Yeah1 with nearly 17%, had violated its policies regarding Youtube AdSense, the program that allows publishers on the video channel to place advertisements by third parties, which in turn generates revenue for the content provider.
Following the incident, Youtube announced that it would terminate all Content Hosting Services Agreements (CHSA) after March 31 with all Yeah1’s subsidiaries or investment companies with business activities related to Youtube Adsense.
The termination would apply to several of YEG’s multi-channel network (MCN) companies it has control over, such as Thailand-based SPRINGme, US-based ScaleLab, and organic Yeah1 Network Pte Ltd.
Currently, the Yeah1 Group management has said it is seeking further clarification with YouTube regarding this action, and actively working with the video hosting website to prolong the CHSA’s after March 31.
Nguyen Ngoc Hung, CEO of Yeah1 Network, said in 2018, Youtube AdSense business of Yeah1 contributed nearly US$1 million to its pre-tax profit, equivalent to 12.9% of the total.
According to Hung, in the worst scenario where YouTube would terminate CHSA with Yeah1, only revenue generated from channels owned by third parties would be affected, but not the group’s owned Youtube channels.
In 2018, total revenue generated from Youtube Adsense reached VND309 billion (US$13.3 million). Of the total, US$1.35 million was from its owned Youtube channels and US$11.95 million from those of third parties, however, profit margin of the former at over 50% is significantly higher than that of the latter at 8%.
Through the acquisition of ScaleLab in January, Yeah 1 has become one of the world’s top three largest MCNs. Therefore, the group plays a key role in managing and developing contents to support Youtube. The termination if happens would cause damage to both parties involved, Hung stated.
By acquiring ScaleLab, Yeah1 has increased the total monthly YouTube views under its umbrella to 6.9 billion, and total YouTube subscribers to 610 million throughout the world.
In a Facebook post, Yearh1’s Chairman Nguyen Anh Nhuong Tong has vowed to help Yeah1 focus on its core value, so that in the future the company would be immune to all challenges.
Other News
- Hanoi aims to lead the country in exporting OCOP products
- IT training urged to focus on semiconductors
- 3,400 taels of gold purchased at the first-in-11-year auction
- Hanoi partners with Lai Chau to market OCOP products
- HoSE to launch KRX-developed transaction system in early May
- Central bank moves gold auction to tomorrow
- Hanoi Great Souvenir Fair 2024 to take place next week
- As orders rise, Vietnamese textile firms see better prospects in 2024
- C.bank to auction nearly 17,000 gold taels on April 22
- Vietnam’s c.bank sells USD to stabilize exchange rate
Trending
-
Collective efforts are key to fight against plastic waste
-
Vietnam news in brief - April 25
-
Vietnamese contemporary ballet celebrates Europe Day
-
IT training urged to focus on semiconductors
-
Voluntary social security should cover larger part of informal sector: Experts
-
ASEAN Future Forum 2024: Promoting regional centrality
-
Central bank moves gold auction to tomorrow
-
[Video]Hanoi beauty spots featured in saxophone legend Kenny G's music video
-
Colorful stage shows in Hoan Kiem Lake pedestrian area