Jun 8, 2014
As I mentioned in my earlier post, regional government media groups were chasing for profits in SP business. But glad to say, not all of them shared the same goal. A minority of them noticed their advantages and disadvantages and chose to orient to the content providers. Wasu is one of the minority group members, and it has a totally different business orientation with other three strongest MG in China.
Recently, Wasu has expanded its DC across the whole province, whose size is bigger than Iceland. The DC is not only servicing its own customers but also for its clients all across China. Furthermore, it now rents the DC power to other companies. All these moves have effectively broken the strong provincial demarcation which has come into being for years.
I believe SPs like Topway and BGCTV have hit the wall. In the coming 3-6 years, the regional limitation will become more and more severe, and there will be an attrition for their business