deal set to start generating big revenue

Channel 10
By Stan Beer
Sunday, 10 December 2006
TV network, Network Ten has chosen online service provider Hostworks to manage its critical new online presence in 2007, which includes Australian Idol, Big Brother and online extensions of other key programs. The initial contract value is approximately $2.5 million.


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Hostworks will provide a comprehensive managed service to support the significant new online presence for Network Ten's digital division as a key partner in Ten's bid to gain a greater share of the $1 billion Internet advertising market.

Ten this week revealed it will launch at least 50 sites based on both local programs such as Australian Idol, Big Brother and Thank God You're Here and overseas series.

Hostworks' agreement with Ten is planned to grow as the broadcaster positions itself as a major player against competitors in the Australian market.

Ten's General Manager - Digital Media, Damian Smith, said Ten chose Hostworks for its unique capability, reliability, scale and exceptional quality customer service. "We have worked with Hostworks previously on programs such as Big Brother which have been very successful," he said.

Mr Smith predicted the Ten sites would attract 1.5 million unique visitors by early 2008. "In the first year, we will focus on building the user experience," he said. "Hostworks' reliability and its ability to scale to meet huge volumes of demand are vital to provide people with a great online experience."

Australia will record more than $1 billion in Internet advertising expenditure this year, a growth rate of 60%, based on research by the Australian Bureau of Verification Services.

Hostworks Director Sales & Marketing Klaus Bartosch said the Ten deal had a lot of potential for growth. "We enable Ten to meet whatever demand its online initiatives attract," he said. "As their online audience grows, the Network can use Hostworks' online platform and our company's deep and unique expertise in this space, to confidently build additional revenue streams from its planned significant digital services."