TV2U signs ground-breaking agreement with SOL Telecom
Shares in TV2U International (ASX:TV2) surged 50% on Tuesday after the company announced that it had signed an agreement with SOL Telecom (LTDA), a group the company has worked closely with through the re-engineering of its business for the launch of new services.
It should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
Under the terms of the contract, which has an initial term of five years, TV2U will provide its technology, know-how and access to content in return for management, integration and service fees. Installation of TV2U technology in Brazil will begin immediately.
TV2U chairman, Nick Fitzgerald said, “This contract absolutely hits the sweet spot for TV2U, leveraging our technology and extending the breadth of content for consumers to new levels”.
Fitzgerald said SOL’s model for the region was very exciting and given it is ready to go and the fact that TV2U will be at the heart of the growth that will be generated, substantial annualised revenue from this business is expected in the near term.
TV2U Chief Executive Andy Brown added, “The vision behind our relationship with SOL will see TV2U grow very quickly with OTT players in Brazil, providing an amazingly cost-effective route to market for the new products we have in development”.
OTT relates to over-the-top content, a term used in broadcasting and technology which refers to audio, video and other media transmitted via the Internet without an operator of multiple cable or direct broadcast satellite television systems controlling or distributing the content.
SOL is the first customer for TV2U’s OTT platform, and this allows the group to distribute digital media in new and innovative ways. It also provides the opportunity to rapidly introduce new and emerging technologies which consumers are likely to be embracing over the next two years.