Internet TV enabler TV2U International (ASX: TV2) has continued its flurry of good news this week with news its previously-agreed deal with PGAS Telekomunikasi Nusantara (PGASCOM) has progressed.
PGASCOM is a government-owned telecommunications provider that manages Indonesia’s national fiber optic network from Jakarta and Java to Sumatra, Bali and Singapore.
TV2U says that the hardware necessary to complete the head-end installation for the over-the-top (OTT) platform has now been delivered, resulting in TV2U receiving a substantial payment from PGASCOM totalling 65% of the funds owed under the contract.
The TV2U solution will introduce a managed content service over multiple networks, going “far beyond what current on-demand business models can offer” when it comes to cost-effective personalisation and content reach.
The two companies intend to shake up the level of service being offered to customers in the region – starting with Indonesia and reaching out to neighbouring countries. TV2U’s cloud-based managed content delivery platform is set to bring Indonesian consumers a mix of premium live, local, and on-demand content covering all genres and tailored to the preferences of the viewer.
One recent revelation was that TV2U has struck a potentially pivotal streaming agreement with Indosat Ooredoo, one of the largest telecom service providers in Indonesia.
The deal contracts TV2U to deliver a premium mobile-first subscription streaming service for Indosat’s subscribers ahead of the FIFA World Cup beginning next month.
TV2U says that PGASCOM’s standing and level of influence on its local market is likely to provide a strong springboard for its next-generation platform that is able to improve on content delivery to viewers, while offering advertisers far more insight into viewing habits.
According to TV2U, PGASCOM is the “backbone to an estimated 70% of internet service providers in Indonesia”, reaching millions of households in the country.
With more than 1,300km of fiber connectivity, PGASCOM’s network represents an important avenue for bringing personalised OTT content to a large customer-base, which is growing on the back of rising disposable incomes and higher spending on digital content.
State of play in Indonesia
TV2U is looking to offer the next generation of content distribution for large telecommunication companies. TV2U company provides a personalised customer viewing experience while maximising operator revenue by collating real-time data from viewers.
Armed with a deeper understanding of the viewing public, TV2U is able to deliver a personalised viewing experience that can be curated for each individual by stitching together the types of content only they are interested in.
This core idea allows the company to maximise revenue through personalised targeted advertising based on geography, demographic or other viewer-specific traits such as socio-economic status or even social media activity. Advertising can be dynamically integrated into a live stream or later inserted into recorded content.
Given the progress made so far, TV2U is confident it can formally complete its contract with PGASCOM and begin generating revenues from the deal in the near term.
As of this month, the antenna systems necessary for downlinking linear channels have been erected at PGASCOM’s primary data centre in Jakarta. TV2U says this step is an important one for the company to begin “head-end installation” later this month with final installation and commissioning expected to be completed before the end of the month.
“Installation is well underway and the timeline for completion is on schedule. Once commercially available, TV2U’s highly personalised OTT platform will open up a new opportunity for content delivery in the region, with PGASCOM’s infrastructure acting as the backbone for bringing the future of cross-genre content to Indonesian consumers through one convenient package,” said Mr Nick Fitzgerald, chief executive officer of TV2U.