TV2U locks in video streaming deal in Indonesia

Internet TV enabler TV2U International (ASX: TV2) has locked in a video streaming deal with one of Indonesia’s largest telecom service providers, Indosat Ooredoo.

TV2U today announced the signing of the contract, which follows on from last month’s news that key terms of the deal had been agreed.

The company has been contracted to deliver a premium mobile subscription streaming service, branded as iStream, which will be available as an add-on content service for Indosat’s existing mobile plan customers.

The deal will run for an initial 36-month period through a subscription-based revenue share agreement with Indosat.

Under the contract terms, TV2U will provide the platform and application suite, as well as product knowledge and remote support once the streaming service is online.

The parties planned to launch the service ahead of the 2018 FIFA World Cup, which kicks off tomorrow night, as a way to initially build iStream’s subscriber base.

TV2U then plans to expand the platform to offer a wider mix of global, local and user-generated content.

“Over time, and as the video library available under the service expands, iStream is expected to become a major live and on-demand streaming marketplace for Indosat’s more than 100 million users, offering a mobile first one-stop-shop for all their content needs,” the company stated.

Although the streaming platform is primarily being utilised an add-on service for mobile customers through a monthly fee, it will also be available to Indosat’s business partners as a licensed platform for immediately offering premium content to their own users.

TV2U added that targeted advertising could be delivered on top, which would enhance revenue potential for both parties.

“As viewing habits continue to change, preventing churn and driving new bottom line growth through relevant advertising and data-driven personalisation has become the key focus of operators and content owners,” TV2U chief executive Nick Fitzgerald said.

After an early 12.5% rise to A$0.018 on the announced inking of the deal, shares in TV2U dropped back down to A$0.016 by afternoon trade.