I think the Australian article handled the cost of acquiring the content well. That is, in emerging markets content owners are resigned to getting nothing as consumers turn to piracy. So they're happy to keep content prices low so they get something. 100% of something is better than 100% of nothing. Another reason why the TV2U approach is so clever.
Also, telecoms are looking to increase data usage. Deals like that with Divan give telecoms in those markets a tool for increasing data usage, so it's in their interest we succeed.
Everything about the strategy I like.
Low cost entry with high margins.
Large markets with low competition and lowered barriers to entry because established in country telecom partners do the heavy lifting.
This has every chance of being a massive success based on fundamentals.
TV2 Price at posting:
3.7¢ Sentiment: Sell Disclosure: Held
