TV2U targets revenue boost early next year after multiple tech deployments

TV2U International ASX TV2 IVAN-X Asia Indonesia Brazil tv personalised viewing music
TV2U International expects to grow revenue from its full commercial deployments in early 2019.

Internet TV enabler TV2U International (ASX: TV2) has published an interim update regarding its tech-enabled growth in Asia, cloud-powered by its “white labelled” TV and entertainment managed service and content delivery platform IVAN-X.

The company’s flagship product enables “personalised individual viewing experiences”, by delivering content to a consumer based on their viewing. TV2U is then able to generate revenue by delivering targeted advertising based on a geographical location, demographics and an array of other metrics.

Currently, TV2U is advancing its business model across Asia with Indonesia the major focus area. In a market statement, the company said that after completing major deployments and installations in recent months, it is now seeking to grow and scale revenues over the course of next year.

The company’s management has confirmed that its near-term focus is primarily devoted to business development activities, sales and marketing initiatives and other revenue-generating activities now that the bulk of its core platform and features have been fully deployed and have been “proven to be robust in the marketplace”, the company says.

Indonesian market expansion

TV2U has an existing deal with Indosat Ooredoo – with TV2U saying that Indosat’s retail division has confirmed it is developing plans for the direct marketing of TV2U’s iStream to Indosat’s consumer-base of 110 million end-users, which includes SMS and in-store promotions and the bundling of iStream content with the telco data plans.

As an indication of some early success, TV2U and Indosat are already generating the first trickle of revenues on the back of platform content rights and revenues that have already been secured by Indosat from ZEE BIOSKOP, BALIWOOD, and from subscribers who enjoyed watching the 2018 Soccer World Cup on iStream.

“Indosat’s marketing efforts are expected to ramp up from January 2019 and we expect to see expanded revenues from the iStream service in Q1 2019 as a result,” TV2U said.

Parallel development with PGASCOM

Via its deal with PGASCOM, TV2U is targeting internet service providers (ISPs), telcos, and content owners utilising TV2U’s “leading edge” IVAN-X white label content delivery platform.

As part of its update to the market, TV2U confirmed that changes to PGASCOM’s commercial contracts are currently ongoing following a management team reshuffle and a new focus on the education sector. As a result, TV2U says it’s on course to secure a “50:50 share of net revenue” with PGASCOM.

A pre-commercial launch is currently scheduled for the first quarter of next year. Assuming its plans come to fruition and without delay, a full commercial launch and initial revenues are forecast for April 2019.

TV2U’s latest deal

Following a deal announced earlier this week, TV2U is on course to see its IVAN-X platform deployed by Lemmon.ID, a company specialising in delivering over-the-top (OTT) coverage of live music events and conferences for local and international talent in Indonesia.

TV2U entered into a commercial agreement with Lemmon.ID for its IVAN-X content delivery platform to power Lemmon’s new global direct-to-consumer streaming service called Bisma, which is due to launch in January 2019.

To kick-off the relationship, the duo held a live-streamed press event featuring Dewa Budjana earlier this week – a well-known Indonesian musician with a global fan base.

Lemmon.ID has confirmed that it intends Bisma to become a “go-to community destination for artists and fans”, which was a key factor in IVAN-X being chosen as the underlying platform. Bisma said it expects to take advantage of TV2U’s live chat and user engagement capabilities to directly connect musicians with fans and consumers.

Bisma’s offering will feature music track downloads, video clips, live coverage of concerts, press events, and on-demand access to other services as market conditions change.

Musicians and artists will also be able to upload their content to Bisma to create their own music channels and communicate directly with fans around the world.

TV2U says that IVAN-X enables artists and content distributors like Bisma to retain full control over their brand and assets – a service feature that existing market giants such as Spotify currently don’t facilitate.

Monetisation of the Bisma platform is expected to come from a mixture of ad-generated revenue, subscription access, pay-per-view streaming of live events, and e-commerce opportunities for event ticket sales and artist merchandise.

The full commercial launch of Bisma is expected to take place in February 2019, with revenues anticipated thereafter.

Outside Asia

In addition to its work in Indonesia, TV2U is also pursuing market traction in South America. Currently, the Internet TV company has a deal with SOL Telecom, a prominent telco in Brazil.

SOL Telecom has invested into the expansion of its head-end facility in readiness for over 150 channels to be introduced, which will offer a mix of local and premium international content to subscribers.

A media promotion plan has been established to drive engagement ahead of a revised launch date – currently scheduled for February 2019.

Last but not least, TV2U is also active in Africa via a commercial agreement with Africa Enterprise Media Group (AEMG). TV2U has said that the commercial launch of content service TV2Africa took place last month with an initial content library already secured and streaming to AEMG’s subscribers.

Broader content deals have also been negotiated and AEMG has developed its local promotions and marketing plan to drive new active users to the platform.

“This campaign and arrival of additional content on the platform will coincide with the launch of TV2Africa on Apple’s iOS, which is awaiting imminent final approval on the Apple App Store,” TV2U said.

TV2U has already secured initial revenues from the TV2Africa service to close out 2018, just from existing subscribers to the platform, with a significant boost expected in January 2019 – following the release of the iOS application and launch of the local marketing campaign.

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