Dynamic matters: Tongzhou Electronics and North China United Radio and Television Network Co., Ltd. plan to sign the “DVB+OTT Project Cooperation and Operation Agreement” and ((Cable TV Digital Overall Transformation Project Cooperation Agreement”) to promote and develop the “DVB+OTT” business in Liaoning Province in the near future. We review relevant information. Key Opinion: Bundled with cable carriers, packages cost less than cable TV. The main package model of cooperation: users purchase a 600 yuan package package at once (excluding non-OTT services), watch 2-year OTT basic package programs, and receive terminal hardware such as DVB+OTT set-top boxes for free; users with a follow-up fee of 20 yuan/month after expiration will purchase the program. The main package for two years is 600 yuan (initial installation fee of 200 yuan for digital TV +24 yuan* 24 yuan* 24 monthly rent = 776 yuan), and the later renewal fee is 20 yuan/month. The fee standard is more favorable than digital television. The company accounted for 70% of the initial package share, and the value-added business side accounted for 50%-60%. The sharing model of cooperation: based on the package package, the Northern Union and the company are divided according to 30%: 70%; the follow-up fee for the expiration of the package, the division between the North Union and the company is 50%: 50%. The initial 600 yuan package became 420 yuan. We think it can cover the cost of shipping the box, and the financial pressure on the company will be less than we expected. Profitability also lies in the 50% share of later renewals. The 10 yuan share is basically similar to that of Baishitong and Telecom. In terms of multiplication business: OTT's video and television on-demand business revenue is divided according to 40%: 60%; OTT's advertising business revenue is divided between North China Union and the Company according to 50%: 50%. Cost part: The company is responsible for investment in terminal set-top boxes, cable modems, and terminal EOC. At the same time, the company bears the costs of OTT basic package business program copyright and production costs, OTT video on-demand content program copyright and production costs, advertising business market development and production costs, etc., and early promotion expenses (pre-promotion expenses are not less than 8 million yuan). We believe that the key cost is the cost of content such as OTT packages and on-demand movies and TV. Considering the cooperation of 11 provinces and cities, we believe that there is a high probability that the company will build a content library under the self-build+external cooperation (traffic import) model, and that the company will turn into a TV Internet platform. Jointly with Zhaochi Co., Ltd. and 11 radio and television operators, the strategy of developing DVB+OTT and box delivery to develop users is quite promising. According to the company's goal of 100 million users in two years, user growth has a great effect on the company's market value. Participate in the two-way transformation of branches, with a monthly subsidy of 8.2 yuan for three years. Participated in the overall digital transformation project of the Chaoyang Branch and Fuxin Branch of the North Union. The company provides “DVB+OTT” set-top boxes, distributes them free of charge to users in accordance with overall digital conversion requirements, and is responsible for the overall set-top box solution. North China is responsible for the network transformation of Chaoyang Branch and Fuxin Branch; it assists the company's no-card CA (DRM of Beijing Digital Taihe Technology Co., Ltd.) is closely related to the Northern United CA system to achieve certification, authentication and management of various businesses. The subsidy standard is 8.2 yuan per terminal (the first terminal distributed free of charge to users by Tongzhou Electronic Investment) for 36 months, and the total subsidy is 295.2 yuan. Investment advice: Maintain a “prudent increase in holdings” rating for the next six months. We adjusted our forecast that in 2013-2015, the company's operating income increased by 5.76%, 25.51%, and 31.47%, respectively. Net profit attributable to the parent company will achieve annual increases of -40.78%, 45.61%, and 40.33%, and corresponding diluted earnings per share of 0.17 yuan, 0.24 yuan and 0.34 yuan, maintaining the company's “prudent increase in holdings” rating.