NWZ swings second big-name deal in a week
Crowdsourcing news platform Newzulu (ASX:NWZ) has bagged a second major news partnership in a matter of days, snagging a deal with Associated Press to license content on the NWZ platform.
It told its shareholders in a pre-open release that Newzulu will be able to seed content from its user-generated video platform onto the AP Video Hub.
Every time a video is downloaded from the AP hub, Newzulu will get a royalty from AP which will then be shared with the original content maker.
The deal is potentially huge for NWZ, with more than half of the world’s population viewing AP content on any given day.
However, the terms of the deal went undisclosed.
AP has been allowing third parties to sell their content on its platform since 2014.
For NWZ, the deal represents the second big-name deal done in a matter of days.
Late last week NWZ announced a partnership with the Australian Broadcasting Corporation, with an initial trial run scheduled for Australia Day next year.
Under the collaboration, the ABC will source video, images, and live video streams from NWZ’s user-generated platform as part of its Australia Day coverage.
Should that go well, there could be scope for further commercial development with the ABC.
Both the ABC and AP deals give NWZ a massive shop window for its user-generated content platforms, and while the commercial aspects of the deals have been kept under wraps, the brand awareness created by the deals is expected to reap dividends for NWZ.
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.