Tv2u - manifesting the positive for June!, page-116

Just back from Asia where I got to attend one of the worlds biggest Video broadcasting tech trade shows in 2016. There were alot of sophisticated investors here this year doing due diligence on technologies and the companies attending and there was a sidelines networking event where we all exchanged details and information and research and opinion.

Interesting points arising regarding TV2U are the Asian investors are aware of the stock, have researched the company and its technology. Collectively the impression and comments I got was they were overall still positive but spooked by the sudden 75 million issue and how it was timed such that beneficiary could then participate in the 1 for 4 options so creating a potential 90 million windfall. The Asians see the ASX bourse as clean compared to their own so are not happy when they perceive things are not professionally handled, such as the incorrect decimal points on announcements, or appear suspect via deals that dilute their shareholdings with what they perceive are related parties.

Some who are TV2U holders note they are watching how Netflix which will launch enhanced analytics later in 2016 into Australia and whether it generates any additional customers and revenue, as they note TV2U is modeled on great analytics and personalisation. They want to see how the market reacts to this technology and what commercialisation factor occurs.

They see content deals being the biggest obstacle for TV2U to complete given limited company funds at hand. Asian TV companies are numerous and the informed investor knows it costs several million in bonds and minimum guarantees to get that part of the content streaming deal in place.

The rise of AVOD is apparent as a market trend. The dynamic is that video content owners want in on the personalised advertising content revenue deals and so content deals are increasingly being struck where the operator(eg a company like Divan), the streamer(eg a company like TV2U), the advertiser(eg a company like the M Group), and the content supplier(eg a Vubiquity type content broker company), all get a cut.

The net revenue which is the basis for all TV2U announcements may get diluted before the split between TV2U and the operator occurs under these type of models. The vendors report the industry is cut throat right now with some consolidation occurring in both the hardware and the Services space.

TV2U can be seen to be navigating its path with cost containment and deals where the operator owns the content rights upfront so the previously mentioned hurdle costs are not present. This is seen as logical and prudent and the sentiment in this group was that most had some exposure from the 3 cent level and were happy to hold and see what happens.

Plenty of Aussies in attendance too and attempts at China entry via OTT are much talked about by most of the OTT aspirants and their technology partners. Huwaei seems to hold some gate keys here and most talked about who would be their partner in China or how to align with them to smooth the way through the tricky business world that is China.

All my own opinion here but interesting as the event was huge. TV2U were not formally present that I could find. Marina Sands is an expensive hoot. No wealth shortage in the rooftop pool area!!