Entrust has formed a joint venture named Asia Digital Media to deliver secure technology solutions enabling HDTV satellite broadcasting, high-speed Internet and on-line transaction services to the Chinese market.
Asia Digital Media was formed to help meet several programming, subscriber and technical goals that are part of the Chinese government's National Agenda project, including:
Entrust's joint venture partners include China Aerospace New World Technology Limited, ADML Holdings, Ltd. and media investors. The media subscription agreement includes a minimum three-year term during which Entrust will receive $1 US per subscriber per year. Under this agreement, there are minimum commitments of 2 million subscribers in the second year and a total of 5 million subscribers within three years.
Asia Digital Media will also resell Entrust's products and services in China. Under the software distribution agreement, Entrust's complete suite of products and services will be marketed and sold to Chinese government entities and private enterprises under the "China Aerospace" brand. Beijing Aerosecure Technologies, a subsidiary of China Aerospace, will resell the company's products and services on behalf of Asia Digital Media under a minimum commitment level of $4.5 million over the next 3 years.