TV2U International signs letter of intent for new product lines

TV2U International (ASX: TV2) has signed a non-binding letter of intent with Talico Technologies in relation to several new product lines to be licensed to TV2U.

The parties will work in good faith together, subject to any necessary due diligence and shareholder approvals, to enter into formal intellectual property license agreements that cover the full extent of the additional product lines that it is intended to introduce.

Highlights of new product lines:

• Worldwide rights to exploit the modular software that provides the market solutions.
• Potential for three new attractive product lines.
• Potential customer deals regarding new product lines are advancing well.
• Potential for additional revenue generation.

Under the terms of the letter of intent, TV2U and Talico (a company owned by Chairman, Nick Fitzgerald) will work towards exploiting the following product lines as soon as final binding agreements are executed and any conditions (including any necessary shareholder approvals) are satisfied.

1. Potential product line 1 (transport)

Working as a plug-in module to our OTT platform solution, Talico’s transport software solution will allowTV2U to offer a feature-rich suite of services to passenger transport companies, particularly airlines.

The LOI contemplates that TV2U will earn revenue by charging a management fee to the customers for each passenger that engages with any aspects of the service as well as an ongoing management fee for those passengers that subscribe for content services after their flight. TV2U has already commenced discussions with a number of transport companies to provide an efficient pathway to revenue generation from this potential product line as efficiently as possible.

2. Potential product line 2 (education)

Talico’s UniTV learning management software module delivers e-learning, then tracks learner progress through real-time analytics, giving instant individual or group achievement reports.

Education content owners are able to use the UniTV to present a rich, discoverable, personalised education experience through the creation, distribution and operation of secure live and on-demand content accessible via one interactive end-user application.

The LOI contemplates that TV2U would earn revenue by charging a management fee to the educator for each student, either as a one-off fee for short courses, or monthly management fees for longer- duration courses. The company has already commenced discussions with a number of educational institutions to provide an efficient pathway to revenue generation from this potential product line as efficiently as possible.

3. Potential product line 3 (connected energy solutions – ‘CES’)

Talico’s CES software module breaks down into three products that can be independently applied, or come together for a full solution offering to any customer:

• Talico’s Smart Meter product provides analytical feedback direct to the consumer – in real time – of their energy consumption, down to individual appliance and device level;
• Talico’s Connected Home product turns any home into a smart home, by using a range of supplied plug-in devices that have interconnectivity to TV2U’s platform; and
• Talico’s Smart Building product integrates with commercial building control systems to provide optimum energy management.

With the above two residential products, TV2U will be able to earn revenue by charging a monthly management fee for each user of the service, in addition to passing through the costs for supporting products. With Smart Building, TV2U will charge an additional fixed monthly management fee.

The company has already commenced discussions with a number of customer opportunities to provide an efficient pathway to revenue generation from this potential product line as efficiently as possible.

TV2U CEO Andy Brown commented:

“Securing the intellectual property represents a great opportunity for TV2U as it provides a pathway for TV2U to expand the product range available to customers without material capital expenditure. The customer pipeline for all three new potential product lines are well advanced and present a genuine opportunity for TV2U to efficiently generate revenue. The company will keep shareholders informed of the progress of the terms of the agreement including if necessary the need for any shareholder approval in relation to the potential new product lines.”

About TV2U International

TV2U is a global complete entertainment platform that enables businesses, such as telecommunications companies, to quickly and easily offer streaming content to their customers.

The service includes movies, television programs, karaoke content and games through an encrypted channel for enhanced copyright protection.

TV2U also offers unique real-time viewership analytics to enable businesses to send highly targeted advertising to end-users to maximise their revenue streams.

TV2U is changing the face of online entertainment and advertising.