The next tech stock

What do Google & Nickelodeon Have to do with this ASX Listed Company? | The Next Tech Stock
What do Google & Nickelodeon Have to do with this ASX Listed Company?

Long gone are the days when television was a parent’s education tool for their children on a lazy Saturday morning.
Today, kids are born with iPads in their hands and their brains are gifted with an automatic know-how for anything electronic.


What do Google & Nickelodeon Have to do with this ASX Listed Company? | The Next Tech Stock
The growth and ubiquity of technology is unstoppable.
So why not use it for good, and not some sort of Grand Theft Auto evil.
And that’s exactly what today‘s Next Tech Stock is doing.
This ASX-listed mobile game publisher and developer is in the ‘edutainment’ space and its business revolves around selling engaging, educational games.
Before we go too much further, we should point out that this is a tiny, $3.5M capped stock, and not without risk – it’s a speculative investment – so do your own research and seek professional advice before making an investment.
The Company is playing in an industry that despite its infancy, already boasts 150,000 edutainment apps.
This is a $1.5BN industry that is set to grow to $2.3BN by 2017. In fact the growth rate for the worldwide game-based learning market is 8.3%.
It’s a space you may know best due to the work of Disney, DreamWorks and Nickelodeon: think Dora the Explorer as the most famous edutainment star of all


What do Google & Nickelodeon Have to do with this ASX Listed Company? | The Next Tech Stock
What stands out about today’s company is that it actually has ties with these entertainment giants – via its app developers who have either worked for these companies or been poached by them.
The developer who came up with the futuristic concept for this Company’s platform, was head hunted by none other than Google for a role as Chief Game Designer.

So along with Google, contributors to this Company’s technology have spent time at Lucas Films, DreamWorks and Nickelodeon…
Some big names have contributed to this tiny company’s development, and it now stands on the threshold of first revenues.
This game publisher is now working hard behind the scenes to shore up deals that will establish its future.
It is working closely with the US PTA (Parent Teacher Association) and already has good traction there.
By collaborating with the PTA and others, this company has access to 63,000 elementary and middle schools with 23 million students.

It has also signed distribution agreements in China and Australia – two other key markets for the company.
The edutainment market could soon take off like Dora in a rocket ship to the purple planet, so let’s jump on board


What do Google & Nickelodeon Have to do with this ASX Listed Company? | The Next Tech Stock
KNeoMedia (ASX:KNM) is an online games publishing company that delivers world-class edutainment (education and entertainment) games to global educational and consumer markets.
The Company sells on a micro-subscription and Apps basis through the KNeoworld.com games portal, App stores and via distribution agreements and education departments.
Primary-aged students (aged between 5 and 13) can play their way through games that are subtly infused with high level educational content in the areas of numeracy, literacy, science and arts.

KNM has worked hard up to now in its key market, the USA, by getting the Parents and Teachers Association (PTA) to effectively be the Company’s ‘sales team’.
Now, PTAs in the US are a very powerful body within the school system, and raise a lot of funds to deliver essential learning tools that the government overlooks.
Being organisations with money to raise, PTAs have been able to sell KNM’s educational games, in exchange for a percentage of the revenue in a win-win situation:

• KNM receive increased sales driven by a local community body, the PTA
• The PTA can raise all important funds for school infrastructure
• Children can learn through KNM’s entertaining mobile games…

Meanwhile, KNM are keen to enter another large market, China – and the Company recently signed an agreement that will see KNM gain access to a market of over 1.3 billion mobile devices, through a partnership arrangement with an online mobile billing platform, connected to China’s three largest telcos China Mobile, China Unicom and China Telecom.
Now, let’s find out what is actually in these games.
Welcome to KNeoWORLD

It’s a brand new world we live in.
And it’s a brand new world that teachers, parents and their kids can immerse themselves in via KNM’s technology.


What do Google & Nickelodeon Have to do with this ASX Listed Company? | The Next Tech Stock
Welcome to KNeoWORLD, where better learning, improved motivation and engagement, problem solving and decision-making skills, resilience and recognition of achievement are all to the fore in this world that sets out to create smarter, more engaged children.
KNeoWORLD is a fun, education games portal where young students play their way through a futuristic and epic world and are introduced to the concept of career selection and progression.
They do this by playing compelling games that are subtly infused with validated educational content including numeracy, literacy, science and arts


What do Google & Nickelodeon Have to do with this ASX Listed Company? | The Next Tech Stock
So if kids are going to play games, which they are if you go by the worldwide growth rate for the game-based learning market – currently 8.3% with revenues likely to increase to $2.3BN by 2017, then it’s a good market to be in and an even better time to be in it.
Enter KNM.