With TV2U, it's hard to say how the data analytics will be used because, as you stated, we have no idea what is in their contracts with their clients/operators. These contracts are confidential and contain sensitive data so there is no way one can, or should, expect them to be published. Also, they may find later a use for that data that wasn't anticipated when the contract was signed. However, as we are informed about the subscription revenues, it would be in the interest of TV2U to release some info about data analytics, particularly if it represents an additional source of revenue. This would certainly be good news for investors.
From what we know, this is not a joint venture or a partnership, it's a supplier/customer relationship. TV2U provides the platform for a one-time fee and collects a percentage of the subscription revenues (instead of say an annual license fee, but can even be both). The question is: Is data analytics a service offered by TV2U as part of the iVANX package, hence its use and any potential revenue goes exclusively to their partner? Is it a separate service subject to another contract or addendum? If the contract has no provisions specific to data collection and usage then the data belongs to the client/operator and TV2U has no rights to it, how it is used, and how it is sold. If you bought/licensed MS Word, then wrote a best selling book on it, Microsoft does not get a share of the revenue. If, on the other hand, there are contractual provisions allowing TV2U to share or benefit from the use of raw data or from data analytics results, potentially this could be a significant source of additional revenue.
One thing to keep in mind is the impact of national data privacy laws. The laws in Brazil changed since 2014 (the "Brazilian Internet Act" and the "Data Protection Bill") and are much more protective of consumers and how their data is collected, stored, and used. The Brazilian laws for example give authorities jurisdiction over online companies that collect or use Brazilian customers’ data, even when such companies are based outside Brazil. Indonesia drafted similar laws in 2015, but their application and how well they are enforced is unclear. How this impacts TV2U data analytics, including the collection and storage of data, remains to be seen.
Enjoy the weekend.
TV2 Price at posting:
1.2¢ Sentiment: None Disclosure: Held
