INVESTORS

NEW YORK, Jan. 5,    2015 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand"), a    leading Video On Demand ("VOD") service provider in China delivering Hollywood    movies and premium content to mobile and TV screens, today announced the launch of    its YOU Kids On Demand subscription platform ("YOU Kids") for cable and IPTV.

In March 2014, in anticipation of this launch, YOU    On Demand signed agreements with Nelvana Enterprises, Sesame Workshop and HiT    Entertainment Ltd. to offer popular children's entertainment titles, which will be    offered on this platform.

YOU Kids, which will be entirely programmed and operated by YOU On Demand, will    initially launch with Nanjing Cable, which reaches 3 million two-way cable    subscribers.  The service will then expand to other cable and IPTV networks in    additional regions in the coming weeks and months. 

On a case-by-case basis, YOU On Demand will either subtitle or dub each specific    title into simplified Chinese, based on whether the age group that a title is    intended for has the propensity to read.

According to Huidian Research, the market for children's entertainment and    education has enormous potential in China, where    there are about 180 million children under the age of eight and more than 20 million    newborns annually, one out of three in urban areas.

Shane McMahon, Chairman of YOU On Demand, stated,    "We are excited for the launch of our YOU Kids subscription platform, which will    provide the best in premium family-friendly entertainment and educational content to    our growing and broadening consumer base in China."

About YOU On Demand Holdings, Inc. (http://corporate.yod.com)
YOU On    Demand (NASDAQ: YOD), is a leading multi-platform entertainment company delivering    premium content, including leading Hollywood movie    titles, to customers across China via Subscription    Video On Demand and Transactional Video On Demand. The Company has secured alliances    with leading global media operators and content developers.  YOU On Demand has    content distribution agreements in place with many of Hollywood's top studios    including Disney Media Distribution, Paramount Pictures, NBC Universal, Miramax    Films, Lionsgate and Magnolia Pictures, as well as a broad selection of the best    content from Chinese filmmakers. The Company has a comprehensive end-to-end secure    delivery system, governmental partnerships and approvals and offers additional    value-added services. YOU On Demand has strategic partnerships with the largest media    entities in China, a highly experienced management    team with international background and expertise in Cable, Television, Film, Digital    Media, Internet and Telecom. YOU On Demand is headquartered in New York, NY with its China    headquarters in Beijing.

Safe Harbor Statement

This press release contains certain statements that may include "forward looking    statements." All statements other than statements of historical fact included herein    are "forward-looking statements." These forward looking statements are often    identified by the use of forward-looking terminology such as "believes," "expects" or    similar expressions, involve known and unknown risks and uncertainties. Although the    Company believes that the expectations reflected in such forward-looking statements    are reasonable, they do involve assumptions, risks and uncertainties, and these    expectations may prove to be incorrect. You should not place undue reliance on these    forward-looking statements, which speak only as of the date of this press release.    The Company's actual results could differ materially from those anticipated in these    forward-looking statements as a result of a variety of factors, including those    discussed in the Company's periodic reports that are filed with the Securities and    Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to    the Company or persons acting on its behalf are expressly qualified in their entirety    by these factors. Other than as required under the securities laws, the Company does    not assume a duty to update these forward-looking statements.

CONTACT:
Jason    Finkelstein                                    
    YOU On    Demand                                    
    212-206-1216                                          
    jason.finkelstein@yod.com                    
    @youondemand

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SOURCE YOU On Demand Holdings, Inc.