TV2U International (ASX: TV2) emerged from a very brief trading halt this morning with news its global entertainment platform SOL GO service has been launched in Brazil.
In what TV2U labels a “world first” its franchise business model brings affordable television and entertainment to consumers across a variety of devices including televisions, mobile phones, tablets, personal computers and set top boxes.
TV2U has developed an entertainment platform which enables media and communications organisations to offer streamlining content to their customers.
TV2U’s system encrypts channels and offers businesses real-time viewer analytics to enable them to create highly targeted advertising to maximise their revenue.
Under phase one of the launch, over the top media distributor TV2U will offer the region’s national free to air television about 30,000 consumers on a 30-day free trial.
The trial includes 62 live television channels and 45 radio stations.
In the second phase, once the free trial is over, consumers will be offered the full channel line-up on a subscription basis. Subscribers will also have access to premium content including Fox Sports, Disney Junior, MTV and Animal Planet.
“Our strategic alliance with SOL Telecom and CCSTV gives us not only a strong presence in Brazil, but also a bridgehead whereby we can expand our operations into the rest of Latin America when the time is right,” TV2U chief executive officer Nick Fitzgerald said.
“With SOL GO, it’s not only the consumer that wins by having a personalised affordable live and on-demand television experience, but also the operator who can stream their own bespoke branded service of local and international content, where until today, the only real affordable operation has been 3rd party branded video on demand services,” he added.
TV2U’s revenue model is based on receiving monthly payments from subscribers, which covers ongoing management and maintenance of the platform and 24/7 helpdesk facilities. Additional revenue will be generated via analytics viewer profiling resulting in targeted and personalised advertising. The company’s monthly base revenue forecast in the first 12 months sits at A$1 million.
According to franchise entity SOL Hot’s director Janio Medeiros, TV2U’s SOL GO disrupts the current television model by eliminating market barriers for thousands of internet service providers, mobile phone operators and content owners. SOL GO enables these providers to offer their own over the top media which can be monetised as a direct service or bundled with data.
He said this allowed content owners to provide independent channels such as Disney and HBO giving Brazilian consumers local, on-demand and other television programs at a competitive price.
TV2U shared closed at $0.024 on the news, up 140% for the day.