16th Sep 2013 07:00
Motive Television Signs Heads of Agreement with Siyaya Free to Air TV (PTY) LTD
Moving toward implementation of Motive technology in South Africa
London 16 September 2013: Motive Television PLC (AIM: MTV.LN), the London-based television software and services company, announced today that its wholly-owned subsidiary, Motive Television Services Ltd (Motive) has signed a binding Heads of Agreement ("HoA") with Siyaya Free To Air TV (PTY) Ltd. of Johannesburg, South Africa (Siyaya).
As a result of this HoA, Motive is appointed as the Technology Partner for Siyaya with full responsibility for providing a turnkey Video-on-Demand solution and other technical services. The HoA sets out the draft commercial terms agreed between the Parties in anticipation of the negotiation and completion of a comprehensive and final agreement (the "Motive-Siyaya Agreement") which is expected to be finalised before the end of the year.
Once Siyaya has won its television licence and/or otherwise decides to provide television services, Motive will serve as the primary technology partner for Siyaya, providing technical and commercial consulting services, technology solutions and products, and system integration plus implementation and continued operation of Siyaya's television platform.
Motive and Siyaya have agreed in the HoA that the business model of their agreement shall consist of upfront setup fees plus a share of revenues generated by the Motive-enabled software platform. The amount of the fees payable to Motive shall be stipulated in the final Motive-Siyaya Agreement.
Motive and Siyaya have agreed to a period of mutual exclusivity for the territory of South Africa until the final Motive-Siyaya Agreement is completed or a period of six months from this HoA.
In February 2013, Motive announced a consulting contract with Siyaya to assist with planning their services and preparing for the licensing competition. In July 2013 Motive helped Siyaya prepare for and attended a public hearing with regulator ICASA in Johannesburg in support of the Siyaya licence application. A decision on Siyaya's bid is anticipated in the near future.
Leonard M Fertig, Chief Executive Officer of Motive, commented: "The completion of this Heads of Agreement is an important step in the Motive-Siyaya partnership as it irrevocably confirms the commercial structure and responsibilities of our business relationship. Partnering with Siyaya extends Motive's technology into the large South African market and represents substantial value, while providing a gateway into the rapidly growing emerging economies of sub-Saharan Africa. Based upon business plan forecasts, Motive estimates the potential value of this Project could exceed £2 million over the next five years. This estimate will vary based on Siyaya's success in the market as the Motive income is based to a great extent on subscribers and VOD revenues."
Enquiries:
Motive Television plc Michael Pilsworth, Chairman Leonard M Fertig, CEO
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Sanlam Securities UK Limited Simon Clements / Virginia Bull
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XCAP Securities Jon Belliss
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Newgate Communications Jason Nisse/Stephanie Dobbs
Media PR Europe Gerry Buckland
Brainerd Communicators Chris Plunkett / Mike Smargiassi
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Notes to Editors
Motive Television provides software and services to the global television industry, enabling Television Anytime Anywhere™. Motive's patented and proprietary technology platform responds to the heightened viewer demand for watching what they want, when they want, on whatever device they want; and is driven by the mandatory switchover from analogue to digital broadcasting as mandated by the International Telecommunication Union.
Motive Television provides broadcasters and pay television operators with enabling technology that provides opportunities to deliver highly valued services to viewers that generate additional income and retain existing subscribers, comprising:
Television Anytime. A technology platform that enables digital broadcasters and pay television operators to offer enhanced broadcasting services with or without the need for an Internet connection. These services include, among others, Video-on-Demand, Catch-Up TV, Virtual Channels, Sneak Preview TV, and Targeted Advertising. Television Anytime is currently in commercial operation in Europe both in digital terrestrial (DTT) and soon in satellite (DTH) environments. Patented in Spain and patent pending in the EU.
Television Anywhere. An advanced multi-screen multi-channel technology that allows a viewer to control and watch all the content received by or recorded in their main home television equipment on any computer, mobile phone, iPad or any other Internet connected device. Television Anywhere is software-based and can be updated via software upgrades on existing STB. US patent pending.
Motive's content division is:
Motive Television Limited, a Dublin-based award-winning independent production company that produces factual programmes for Irish broadcasters. It specializes in live sports production and sports documentaries and also produces factual and entertainment series.
Motive Television was founded in London in 2005 and its shares are quoted on the London Stock Exchange (AIM).
http://www.motivetelevision.co.uk
Related Shares:
Motive Television Plc