Newzulu’s $4 million deal
Newzulu (ASX:NWZ) has given its content a massive shop window and may end up making $4.1 million from a new content deal struck with a major US regional news service.
It has inked a non-binding letter of intent with Regional News Network to produce crowd-sourced and online video channels using NWZ’s tech platform.
The channels would take content straight from the mobiles of its audience and present it on TV and online channels.
According to Nielsen data, content from NWZ’s platform could end up in 115 million homes and on 198 million mobile devices.
NWZ told its shareholders today that the deal could take the form of a five-year licensing agreement, and while the details still need to be negotiated, that it could reap the company $US3 million ($A4.1 million) over the term of the deal.
It is also planning on developing revenue streams based on its politics, weather, entertainment, and sport crowd-sourced content.
About Newzulu (ASX:NWZ)
Newzulu is a news platform where publishers can connect with citizen journalists who are on the scene of unfolding news taking footage with their mobile phones.
In the past, citizen journalists had to connect with individual newsroom, and then wait for a response.
For publishers, they had to verify the content was real.
NWZ however takes a lot of the gruntwork out of the process and makes things easier for both publisher and citizen journalist.
Citizen journalists simply log onto the Newzulu platform, upload the footage and then wait for the cash to roll in.
Newzulu verifies the content to make sure it’s legitimate, and then pays the citizen journalist a fee for the content.
Then a Newzulu partner such as Agence France Presse or Getty Images then onsells the footage to news organisations which have paid for access to the Newzulu library.