----

----

| DELAWARE                                                       |   | 87-0398271                                |
|----------------------------------------------------------------|--------|-------------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

|   | Large accelerated filer | o | Accelerated filer         | o |
|--------|-------------------------|---|---------------------------|---|
|   | Non-accelerated filer   | o | Smaller reporting company | x |

----

----

----

|                           |                                                                                        | Page   |
|--------------------------------|---------------------------------------------------------------------------------------------|--------|
| PART I - FINANCIAL INFORMATION |
|                           |
| Item 1.              | Financial Statements                                                                        |   | 3 |
| Item 2.              | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   | 19 |
| Item 3.              | Quantitative and Qualitative Disclosures About Market Risk                                  |   | 24 |
| Item 4T.                       | Controls and Procedures                                                                     |   | 24 |
| PART II - OTHER INFORMATION    |
|                           |
| Item 1.              | Legal Proceedings                                                                           |   | 24 |
| Item 1A.                       | Risk Factors                                                                                |   | 24 |
| Item 2.         | Unregistered Sales of Equity Securities and Use of Proceeds                                 |   | 24 |
| Item 3.              | Defaults Upon Senior Securities                                                             |   | 24 |
| Item 4.                        | (Removed and Reserved)                                                                      |   | 24 |
| Item 5.                        | Other Information                                                                           |   |   |
| Item 6.         | Exhibits                                                                                    |   | 24 |
|                           |
| SIGNATURES                     |                                                                                        | 25     |

----

|                                                                                                  |   | September              30, |        |   | December              31, |   |
|-------------------------------------------------------------------------------------------------------|--------|----------------------------|-------------|--------|---------------------------|--------|
|                                                                                                  |   | 2010                       |        |   | 2009                      |   |
|                                                                                                  |   | (Unaudited)                |        |   | (Audited)                 |   |
| ASSETS                                                                                                |   |                       |        |   |                      |   |
| CURRENT              ASSETS                                                                           |   |                       |        |   |                      |   |
| Cash              and cash equivalents                                                                |   | $                          | 15,753      |   |                      | $      | 181,723 |   |
| Accounts              receivable, net                                                                 |   |                       | 1,110       |   |                      |   | - |   |
| Other              current assets                                                                     |   |                       | 2,740       |   |                      |   | 157,432 |   |
| TOTAL              CURRENT ASSETS                                                                     |   |                       | 19,603      |   |                      |   | 339,155 |   |
|                                                                                                  |   |                       |        |   |                      |   |   |   |
| Property              and equipment, net                                                              |   |                       | 46,844      |   |                      |   | 65,457 |   |
| Intangible              assets, net                                                                   |   |                       | 4,287,154   |   |                      |   | 4,664,879 |   |
| Other              Assets                                                                             |   |                       | 21,503      |   |                      |   | 24,916 |   |
|                                                                                                  |   |                       |        |   |                      |   |   |   |
| TOTAL              ASSETS                                                                             |   | $                          | 4,375,104   |   |                      | $      | 5,094,407 |   |
|                                                                                                  |   |                       |        |   |                      |   |   |   |
| LIABILITIES              AND STOCKHOLDERS' EQUITY (DEFICIT)                                           |   |                       |        |   |                      |   |   |   |
|                                                                                                  |   |                       |        |   |                      |   |   |   |
| CURRENT              LIABILITIES                                                                      |   |                       |        |   |                      |   |   |   |
|                                                                                                  |   |                       |        |   |                      |   |   |   |
| Accounts              payable                                                                         |   | $                          | 92,284      |   |                      | $      | 106,382 |   |
| Accrued              liabilities                                                                      |   |                       | 1,122,678   |   |                      |   | 1,068,293 |   |
| Note              payable                                                                             |   |                       | 20,000      |   |                      |   | - |   |
| Note              payable - related party                                                             |   |                       | 96,000      |   |                      |   | - |   |
|                                                                                                  |   |                       |        |   |                      |   |   |   |
| TOTAL              CURRENT LIABILITIES                                                                |   |                       | 1,330,962   |   |                      |   | 1,174,675 |   |
|                                                                                                  |   |                       |        |   |                      |   |   |   |
| LONG              TERM LIABILITIES                                                                    |   |                       |        |   |                      |   |   |   |
|                                                                                                  |   |                       |        |   |                      |   |   |   |
| Convertible              notes payable - related party                                                |   |                       | 150,000     |   |                      |   | 150,000 |   |
| Convertible              note payable                                                                 |   |                       | 250,000     |   |                      |   | 250,000 |   |
| Note              payable                                                                             |   |                       | 2,467,312   |   |                      |   | 2,377,312 |   |
| Beneficial              conversion feature                                                            |   |                       | (203,129    | )      |                      |   | (277,128 | ) |
|                                                                                                  |   |                       |        |   |                      |   |   |   |
| TOTAL              LONG TERM LIABILITIES                                                              |   |                       | 2,664,183   |   |                      |   | 2,500,184 |   |
|                                                                                                  |   |                       |        |   |                      |   |   |   |
| TOTAL              LIABILITIES                                                                        |   | $                          | 3,995,145   |   |                      | $      | 3,674,859 |   |
|                                                                                                  |   |                       |        |   |                      |   |   |   |
|                                                                                                  |   |                       |        |   |                      |   |   |   |
| STOCKHOLDERS'              EQUITY (DEFICIT)                                                           |   |                       |        |   |                      |   |   |   |
|                                                                                                  |   |                       |        |   |                      |   |   |   |
| Preferred              stock, $0.001 par value: 2,000,000 shares authorized;                          |   |                       |        |   |                      |   |   |   |
| Series              A Preferred Stock, $0.001 par value; 500,000 shares authorized;                   |   |                       |        |   |                      |   |   |   |
| zero              shares issued and outstanding at September 30, 2010;                                |   |                       |        |   |                      |   |   |   |
| 3,000              shares issued and outstanding at December 31, 2009;                                |   |                       | -           |   |                      |   | 3 |   |
| Common              stock, $0.001 par value: 500,000,000 shares authorized;                           |   |                       |        |   |                      |   |   |   |
|     159,031,461              shares issued and outstanding at September 30, 2010; |   |                       |        |   |                      |   |   |   |
|     158,631,461              shares issued and outstanding at December 31, 2009;  |   |                       | 159,031     |   |                      |   | 158,631 |   |
| Paid-in              capital                                                                          |   |                       | 22,536,631  |   |                      |   | 21,420,227 |   |
| Accumulated              other comprehensive income                                                   |   |                       | 777         |   |                      |   | (213 | ) |
| Accumulated              deficit                                                                      |   |                       | (22,316,480 | )      |                      |   | (20,159,100 | ) |
|                                                                                                  |   |                       |        |   |                      |   |   |   |
| TOTAL              STOCKHOLDERS' EQUITY (DEFICIT)                                                     |   |                       | 379,959     |   |                      |   | 1,419,548 |   |
|                                                                                                  |   |                       |        |   |                      |   |   |   |
|                                                                                                  |   |                       |        |   |                      |   |   |   |
| TOTAL              LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                     |   | $                          | 4,375,104   |   |                      | $      | 5,094,407 |   |

----

|                                                    |   | Three            Months Ended |        |   | Nine            Months Ended |   |
|---------------------------------------------------------|--------|-------------------------------|-------------|--------|------------------------------|--------|
|                                                    |   | September            30,      |        |   | September            30,     |   |   | September            30, |   |   | September            30, |   |
|                                                    |   | 2010                          |        |   | 2009                         |   |   | 2010 |   |   | 2009 |   |
|                                                    |   |                          |        |   |                         |   |   |   |   |   |   |   |
| REVENUE                                                 |   |                          |        |   |                         |   |   |   |   |   |   |   |
| Sales                                                   |   | $                             | 10          |   |                         | $      | 5,000 |   |   | $ | 78,071 |   |   | $ | 106,753 |   |
|                                                    |   |                          |        |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Total            revenue                                |   |                          | 10          |   |                         |   | 5,000 |   |   |   | 78,071 |   |   |   | 106,753 |   |
|                                                    |   |                          |        |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING            EXPENSES                           |   |                          |        |   |                         |   |   |   |   |   |   |   |   |   |   |   |
|     Cost            of sales        |   |                          | —     |   |                         |   | — |   |   |   | — |   |   |   | 17,106 |   |
| Selling,            general and administrative expenses |   |                          | 514,111     |   |                         |   | 1,310,292 |   |   |   | 2,144,341 |   |   |   | 1,881,514 |   |
|                                                    |   |                          |        |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Total            operating expenses                     |   |                          | 514,111     |   |                         |   | 1,310,292 |   |   |   | 2,144,341 |   |   |   | 1,898,620 |   |
|                                                    |   |                          |        |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Operating            loss                               |   |                          | (514,101    | )      |                         |   | (1,305,292 | ) |   |   | (2,066,270 | ) |   |   | (1,791,867 | ) |
|                                                    |   |                          |        |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Other            Income (expense)                       |   |                          |        |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Interest            income                              |   |                          | 2           |   |                         |   | 52 |   |   |   | 13 |   |   |   | — |   |
| Interest            expense                             |   |                          | (81,025     | )      |                         |   | (65,675 | ) |   |   | (239,409 | ) |   |   | (330,280 | ) |
| Rental            Income                                |   |                          | 49,362      |   |                         |   | 49,662 |   |   |   | 148,286 |   |   |   | 98,741 |   |
| Loss            on Abandonment                          |   |                          | —     |   |                         |   | — |   |   |   | — |   |   |   | (130,317 | ) |
|                                                    |   |                          |        |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Total            other income (expense)                 |   |                          | (31,661     | )      |                         |   | (15,961 | ) |   |   | (91,110 | ) |   |   | (361,856 | ) |
|                                                    |   |                          |        |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| NET            LOSS                                     |   | $                             | (545,762    | )      |                         | $      | (1,321,253 | ) |   | $ | (2,157,380 | ) |   | $ | (2,153,723 | ) |
|                                                    |   |                          |        |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| BASIC            AND DILUTED NET LOSS PER COMMON SHARE  |   | $                             | (0.00       | )      |                         | $      | (0.01 | ) |   | $ | (0.01 | ) |   | $ | (0.05 | ) |
|                                                    |   |                          |        |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED            AVERAGE COMMON SHARES OUTSTANDING   |   |                          | 159,031,461 |   |                         |   | 157,354,824 |   |   |   | 158,835,124 |   |   |   | 47,070,652 |   |
|                                                    |   |                          |        |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Other            Comprehensive Income                   |   |                          |        |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Foreign            currency translation adjustment      |   |                          | 777         |   |                         |   | — |   |   |   | 777 |   |   |   | — |   |
| Net            income                                   |   |                          | (545,762    | )      |                         |   | (1,321,253 | ) |   |   | (2,157,380 | ) |   |   | (2,153,723 | ) |
| COMPREHENSIVE            INCOME                         |   | $                             | (544,985    | )      |                         | $      | (1,321,253 | ) |   | $ | (2,156,603 | ) |   | $ | (2,153,723 | ) |

----

|                                                                                                             |   | Nine            MonthsEnded |       |
|------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|
|                                                                                                             |   | September            30,    |       |   | September            30, |   |
|                                                                                                             |   | 2010                        |       |   | 2009 |   |
| Cash            flows from operating activities:                                                                 |   |                        |       |   |   |   |
| Net            loss                                                                                              |   | $                           | (2,157,380 | ) |   | $ | (3,989,439 | ) |
|              Adjustments to reconcile net loss to net cash used in operating activities:          |   |                        |       |   |   |   |   |   |
| Depreciation                                                                                                     |   |                        | 20,520     |   |   |   | 9,937 |   |
| Amortization            of licenses                                                                              |   |                        | 377,725    |   |   |   | 595,356 |   |
| Amortization            of beneficial conversion feature                                                         |   |                        | 73,999     |   |   |   | 68,195 |   |
| Stock-based            compensation to employees and directors                                                   |   |                        | 1,076,801  |   |   |   | 1,709,934 |   |
| Changes            in operating assets and liabilities:                                                          |   |                        |       |   |   |   |   |   |
| Accounts            receivable                                                                                   |   |                        | (1,110     | ) |   |   | 16,342 |   |
| Other            assets                                                                                          |   |                        | 198,105    |   |   |   | 64,754 |   |
| Accounts            payable and accrued liabilities                                                              |   |                        | 40,287     |   |   |   | 269,081 |   |
|                                                                                                             |   |                        |       |   |   |   |   |   |
|           Net            cash used in operating activities     |   |                        | (371,053   | ) |   |   | (1,255,840 | ) |
|                                                                                                             |   |                        |       |   |   |   |   |   |
| Cash            flows from investing activities:                                                                 |   |                        |       |   |   |   |   |   |
|   Purchases            of property and equipment                                                       |   |                        | (1,907     | ) |   |   | (64,109 | ) |
|   Purchases            of intangible assets                                                            |   |                        | —    |   |   |   | (268,323 | ) |
|                                                                                                             |   |                        |       |   |   |   |   |   |
|           Net            cash used in investing activities     |   |                        | (1,907     | ) |   |   | (332,432 | ) |
|                                                                                                             |   |                        |       |   |   |   |   |   |
| Cash            flows from financing activities:                                                                 |   |                        |       |   |   |   |   |   |
|   Proceeds            from issuance of common stock                                                    |   |                        | —    |   |   |   | 4,000 |   |
|   Proceeds            from note related party                                                          |   |                        | 96,000     |   |   |   | — |   |
|   Proceeds            from note                                                                        |   |                        | 20,000     |   |   |   |   |   |
|   Proceeds            from note - XSEL                                                                 |   |                        | 90,000     |   |   |   | 1,766,870 |   |
|                                                                                                             |   |                        |       |   |   |   |   |   |
|           Net            cash provided by financing activities |   |                        | 206,000    |   |   |   | 1,770,870 |   |
|                                                                                                             |   |                        |       |   |   |   |   |   |
| Effect            of exchange rate                                                                               |   |                        | 990        |   |   |   | — |   |
|                                                                                                             |   |                        |       |   |   |   |   |   |
| Net            increase (decrease) in cash and cash equivalents                                                  |   |                        | (165,970   | ) |   |   | 182,598 |   |
|                                                                                                             |   |                        |       |   |   |   |   |   |
| Cash            and cash equivalents at beginning of period                                                      |   |                        | 181,723    |   |   |   | 34,425 |   |
|                                                                                                             |   |                        |       |   |   |   |   |   |
| Cash            and cash equivalents at end of period                                                            |   | $                           | 15,753     |   |   | $ | 217,023 |   |
|                                                                                                             |   |                        |       |   |   |   |   |   |
| Supplemental            disclosures of cash flow information:                                                    |   |                        |       |   |   |   |   |   |
|                                                                                                             |   |                        |       |   |   |   |   |   |
| Cash            paid for income taxes                                                                            |   | $                           | —    |   |   | $ | 1,600 |   |
|                                                                                                             |   |                        |       |   |   |   |   |   |
| Non-cash            investing and financing activity:                                                            |   |                        |       |   |   |   |   |   |
|                                                                                                             |   |                        |       |   |   |   |   |   |
| Beneficial            conversion feature                                                                         |   |                        | 73,999     |   |   |   | 118,583 |   |
| Shares            issued pursuant to consulting agreement                                                        |   | $                           | 40,000     |   |   | $ | — |   |
| Acquisition            of intangible assets for stock                                                            |   | $                           | —    |   |   | $ | 9,199,800 |   |

----

----

----

| Level 1  | inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |
|---------------|---------------------------------------------------------------------------------------------------------------------------|

| Level 2 | inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Level 3 | inputs to the valuation methodology are unobservable and significant to the fair value. |
|---------|-----------------------------------------------------------------------------------------|

----

----

----

----

----

| **Property and Equipment**      |   | September 30 |    |   | December 31, |   |
|---------------------------------|--------|--------------|---------|--------|--------------|--------|
|                            |   | 2010         |    |   | 2009         |   |
| Computer Software and Equipment |   | $            | 99,933  |   |         | $      | 99,093 |   |
| Office Furniture and Equipment  |   |         | 7,936   |   |         |   | 6,869 |   |
| Total Property and Equipment    |   |         | 107,869 |   |         |   | 105,962 |   |
|                            |   |         |    |   |         |   |   |   |
| Less: Accumulated Depreciation  |   |         | (61,025 | )      |         |   | (40,505) |   |
| Property and Equipment, net     |   | $            | 46,844  |   |         | $      | 65,457 |   |

| **Intangible Assets**            |   | September 30, |       |   | December 31, |   |
|----------------------------------|--------|---------------|------------|--------|--------------|--------|
|                             |   | 2010          |       |   | 2009         |   |
| China IPTV & Mobile Licenses |   | $             | 2,090,000  |   |         | $      | 2,352,500 |   |
| YesTV China IPTV Rights          |   |          | 3,408,000  |   |         |   | 3,408,000 |   |
| Koobee                           |   |          | 7,833      |   |         |   | 7,8330 |   |
| Total Intangible Assets          |   |          | 5,505,833  |   |         |   | 5,768,333 |   |
|                             |   |          |       |   |         |   |   |   |
| Less: Accumulated Amortization   |   |          | (1,218,679 | )      |         |   | (1,103,454 | ) |
| Intangible Assets, net           |   | $             | 4,287,154  |   |         | $      | 4,664,879 |   |

----

| **Accrued Liabilities**           |   | September 30, |      |   | December 31, |   |
|-----------------------------------|--------|---------------|-----------|--------|--------------|--------|
|                              |   | 2010          |      |   | 2009         |   |
| Obligations on license agreements |   | $             | 47,636    |   |         | $      | 110,095 |   |
| Accrued salaries                  |   |          | 347,750   |   |         |   | 330,000 |   |
| Interest                          |   |          | 429,924   |   |         |   | 264,513 |   |
| Deferred rent expense             |   |          | 14,631    |   |         |   | 21,988 |   |
| Sublease security deposits        |   |          | 32,000    |   |         |   | 32,000 |   |
| Accrued vendor liabilities        |   |          | 199,740   |   |         |   | 219,740 |   |
| Other                             |   |          | 50,997    |   |         |   | 89,957 |   |
|                              |   | $             | 1,122,678 |   |         | $      | 1,068,293 |   |

----

----

|                             |   |                                |      |   | Outstanding          Options |   |
|----------------------------------|--------|-------------------------------------|-----------|--------|------------------------------|--------|
|                             |   | Shares          Available for Grant |      |   | Number          of Shares    |   |   | Weighted          Average Exercise Price |   |   | Weighted          Average Remaining Contractual Life (years) |   |   | Aggregate          Intrinsic Value |   |
|                             |   |                                |      |   |                         |   |   |   |   |   |   |   |   |   |   |
| December          31, 2009       |   |                                | 9,041,667 |   |                         |   | 40,958,333 |   |   |   | 0.13 |   |   |   | 9.30 |   |   |   | - |   |
| Stock          Plan Amendment    |   |                                | -         |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Grants                           |   |                                | -         |   |                         |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Cancellations                    |   |                                | -         |   |                         |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| September          30, 2010      |   |                                | 9,041,667 |   |                         |   | 40,958,333 |   |   |   | 0.13 |   |   |   | 8.55 |   |   |   | - |   |
|                             |   |                                |      |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Options          exercisable at: |   |                                |      |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December          31, 2009       |   |                                |      |   |                         |   | 6,200,000 |   |   |   | 0.14 |   |   |   | 9.37 |   |   |   | - |   |
| September          30, 2010      |   |                                |      |   |                         |   | 14,800,000 |   |   |   | 0.12 |   |   |   | 8.50 |   |   |   | - |   |

----

| Outstanding             |   | Exercisable                 |
|-------------------------|--------|-----------------------------|
| Exercise          Price |   | Number          Outstanding |   | Weighted          Average Remaining Contractual Life (years) |   | Weighted          Average Exercise Price |   | Number          Exercisable |   | Weighted          Average Exercise Price |
| $0.15                   |   | 250,000                     |   | 0.02 |   | $0.01 |   | 250,000 |   | $0.01 |
| $0.65                   |   | 300,000                     |   | 0.00 |   | $0.06 |   | 300,000 |   | $0.06 |
| $0.09                   |   | 875,000                     |   | 0.80 |   | $0.02 |   | 875,000 |   | $0.02 |
| $0.09                   |   | 525,000                     |   | 0.49 |   | $0.01 |   | 525,000 |   | $0.01 |
| $0.03                   |   | 1,250,000                   |   | 2.19 |   | $0.01 |   | 1,250,000 |   | $0.01 |
| $0.03          - $0.65  |   | 3,200,000                   |   | 3.50 |   | $0.12 |   | 3,200,000 |   | $0.12 |

----

----

----

----

----

----

| ExhibitNumber |   | Description                                                                                                                                                                     |
|---------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                            |
| 31.1*         |   | Certification by Chief Executive Officer, required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act                                                                      |
|          |   |                                                                                                                                                                            |
| 31.2*         |   | Certification by Chief Financial Officer, required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act                                                                      |
|          |   |                                                                                                                                                                            |
| 32.1*         |   | Certification by Chief Executive Officer, required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code |
|          |   |                                                                                                                                                                            |
| 32.2*         |   | Certification by Chief Financial Officer, required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code |

----

| CHINA YOUTH MEDIA, INC. |
|-------------------------|
|                    |   |   |   |
|                    | Date: November 22, 2010 | By: | /s/ Jay Rifkin |   |
|                    |   |   | Jay Rifkin |
|                    |   |   | Chief Executive Officer |
|                    |   |   |   |
|                    |   |   |   |
|                    | Date: November 22, 2010 | By: | /s/ Jay Rifkin |   |
|                    |   |   | Jay Rifkin |
|                    |   |   | Principal Financial Officer |

----