Newzulu Signs Licensing Deal With Leading Australian Media Company

Jul. 22, 2015 8:14 PM ET
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Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of listed companies across the globe daily. We are one of the fastest growing financial media portals in the world. The group also operates hugely successful “investor forums” where three or four companies present to an audience of high net sophisticated investors, fund managers, hedge funds, private client brokers and analysts. Ian Mclelland founded Proactiveinvestors in 2006 as a way to channel his own views on companies small and mid-cap public companies. What started as a hobby quickly turned into a full time job as the website's readership exploded. One2One forums were added later in 2006, and within two years the company had expanded its operations into Canada and Australia. In 2009 the company expanded into Germany and finally into the US in 2010. Proactiveinvestors is now one of the fastest growing global financial media organizations in the world receiving more than one million visitors per month, with investor forums held across the globe on a regular basis.

Newzulu Limited (ASX:NWZ) expects to generate revenue of $500,000 to $1,600,000 per annum by licensing its Platform and Live product suite to a leading Australian media company.

The identity of the media company was not disclosed because of disclosure provisions.

The client will be the first major Australian media group to use Newzulu's crowd-source photos, videos and live video stream platform into the client's news services.

Under the Agreement the client will also provide up to three hundred (300) of its staff reporters with Newzulu Live Reporter Kits on their smartphones, such that they can file live video, post live video and photos direct from their mobile phones into the client's news services across multiple delivery platforms.

The client has required that both its identity and the terms of the Agreement remain confidential at this stage.

Alexander Hartman, executive chairman, said:

"Newzulu is delighted to be working with one of Australia's leading media companies.

"We are excited by the deployment of our Newzulu Platform and Newzulu Live products to empower reporters with mobile live video technology and by the breaking news stories that will flow from crowd-sourced photos, videos and live video streams from the client's audience, leveraging their extensive reach across multiple delivery platforms."

Licensing Agreement

The licensing agreement allows anybody with a smartphone and a story to contribute to the clients leading media assets through Newzulu Platform and Newzulu Live technology.

Conditions include:

- The Agreement is subject to further negotiation and agreement on specific commercial terms;
- The Agreement extends up to two years, subject to an initial twelve (12) week trial period;
- The Agreement included initial licensing of Newzulu Live Reporter Kits for up to three hundred reporters; and
- The Agreement includes initial licensing of Newzulu Live user-generated content capabilities for up to 300,000 active monthly mobile installations.

Recent Activity

Newzulu has grown a global community of reporters, photographers, and videographers in 198 countries over the last eight years.

Earlier this month, it teamed with online video technology company Ooyala to refer clients to each other on a revenue sharing basis.

This provides the company with a new channel to market via Ooyala's client base and global sales infrastructure, which could deliver a material increase in revenues.

Newzulu has also clinched a key content syndication agreement with UK-based independent global video news agency Videoplugger, which specialises in the syndication of much watched celebrity, showbiz and sports-related online video content for media and commercial use worldwide.

Videoplugger will distribute content from Boomzulu (Newzulu's celebrity and showbiz vertical) and Sportszulu (Newzulu's sports news vertical), along with Newzulu's crowd-sourced post-live video news content.

Analysis

The agreement with the leading Australian media company could deliver revenue of between $500,000 and $1,600,000 per annum to Newzulu.

This is likely to be a model that scales to other media companies both locally and globally.

It also highlights how truly "disruptive" the company's platforms are to the business model of traditional media companies.

Newzulu has been building its crowd sourced video content business model with the recent agreement with Ooyala especially notable given that Telstra plans to use Ooyala's software and services to deliver its television content online and, further, to resell Ooyala's platform to other media companies and corporations.

This follows on from a strategic partnership agreement for news and multimedia distribution, syndication and sales with Tribune Content Agency, part of the long established media company Tribune Publishing.

While a key content syndication agreement signed in July with UK-based independent global video news agency Videoplugger in July demonstrates the momentum building and recognition of Newzulu's value adding content.

The future of video media reporting may be with us now, with Newzulu's crowd sourced platform. Proactive believe that the company will be attractive to acquisitive companies.

Further, in the fast changing media landscape, Newzulu's valuation of circa $41 million is a drop in the ocean to a larger, acquisitive group.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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