TV2U LICENCES TECHNOLOGY TO SOL TELECOM FOR LATAM GROWTH TV2U...

TV2U LICENCES TECHNOLOGY TO SOL TELECOM
FOR LATAM GROWTH
TV2U International Limited (ASX: TV2) (TV2U or Company) is pleased to announce that it has entered
into a commercially binding agreement with SOL Telecom, a leading Brazilian telecoms provider,
to act as a reseller of its technology across Brazil. The move supersedes the existing agreement
between TV2U and SOL Telecom, expanding on its scope in a way that stands to significantly grow
the number of end-users supported by TV2U’s technology.
Building on TV2U and SOL Telecom’s existing relationship, this agreement will see the telecoms
provider become a local reseller for the IVAN-X content delivery platform. SOL will offer a SOL GO
branded OTT direct-to-consumer service as part of this. It will also offer a white-labelled, fully
managed OTT platform, underpinned by TV2U’s IVAN-X technology, to its internet service provider
customers – enabling them to quickly bring their own value-added streaming services to consumers
across the region.
Scope of the licensing agreement
Under the licensing agreement, SOL will handle promotion and primarily undertake its own content
acquisition, although TV2U will look to enhance SOL’s own content on the platform with international
content and other media assets as a result of its agreements with rights holders around the globe.
The platform will offer full support for Android and iOS devices, set-top boxes, and web browsers
straight out of the box.
TV2U and SOL Telecom will run a similar revenue share model to that in place with AEMG in South
Africa (see 18 July 2018 update for more information). This includes revenue based on subscriber
figures for services delivered via the white-label platform, management fees, and also targeted
advertising revenue. The minimum subscriber requirement is 225,000 by the end of the first year of
operation. TV2U will be entitled to a management fee per active monthly subscriber/end-customer
of USD $2.40 (based on the total number of subscribers/end-customers to whom SOL Telecom
delivers video content directly, or via Resellers, over the white labelled platform. The new
agreement will run for an initial 36-month period.
TV2U’s technology driving growth in the region
Latin America is an underserved market for OTT content delivery. Brazil, in particular, has an active
user base of pay-TV subscribers, but there’s significant room for growth as many more consumers
forgo these services due to the traditionally high cost involved. Given the flexibility and scalability
International Limited ACN 110 184 355
Corporate Head Office
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Fremantle WA 6160
www.tv2u.com | [email protected]
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GLOBAL OFFICE LOCATIONS

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offered under IVAN-X, and with its robustness as an IP-based delivery platform, the white-labelled
service available which SOL is now able to offer its partners and end customers will help to disrupt
the status quo and create valuable consumer alternatives at a much lower price point.
Nick Fitzgerald, CEO at TV2U, added: “Expanding on our existing relationship with SOL Telecom
marks a considerable step forward in TV2U’s technology powering OTT content delivery for millions
of consumers around the world.
“This growth is being driven by the fact telecoms providers and mobile operators currently have a
hugely valuable opportunity to drive new revenues in a multi-tenanted fashion. Not only by serving
their own customers with OTT video, but also the customers of their partners. We’re looking forward
to working with SOL Telecom in this way to expand TV2U’s footprint across Latin America.