Motive inks South African VOD deal

January 3, 2014 09.08 Europe/London By Chris Dziadul

flag-of-south-africaMotive Television has signed a contract with Johannesburg-based Siyaya Free to Air TV (PTY) Ltd.

The deal was inked by Motive’s wholly owned subsidiary Motive Television Services and will see Motive install, integrate, and operate Siyaya’s VOD platform in conjunction with the expected launch of Siyaya’s television services on the Sentech Freevision DTH satellite service in the first half this year.

Once Siyaya has won a television licence for digital terrestrial broadcasting, and when Siyaya subsequently launches services over DTT, Motive will serve as the primary technology partner for Siyaya, providing technology solutions, products, and system integration for the implementation and continued operation of Siyaya’s VOD platform.

According to the agreement, Motive will receive upfront setup fees plus operating fees based on a share of monthly VOD platform revenues.

The contract will provide Motive a guaranteed minimum equivalent to £1.07 million (at today’s conversion rate) over the next five years.

However, as stated in the announcement dated September 16 last year, Motive estimates the probable value of the project to be approximately £2 million.

Motive and Siyaya have agreed to a period of exclusivity for the territory of South Africa for the term of the contract until and unless both parties agree to make the VOD platform available to third party broadcasters.

Commenting on the agreement, Leonard M Fertig, CEO of Motive Television PLC, said: “The completion of this Operations and Services Agreement marks another milestone in the growing partnership between Motive and Siyaya, and we look forward to the upcoming launch of Siyaya on the Freevision DTH platform. We have been working closely with Siyaya since February 2013 in the planning of their services and will now move directly into preparation for launch.

“Siyaya is a new entrant targeting the large and growing middle class in South Africa with innovative television services and is an example of the major opportunities available for Motive in supporting successful television companies in emerging markets. As Siyaya’s technology partner, Motive is able to leverage its patented technology and proprietary expertise to participate directly in the success of Siyaya’s VOD platform. The Company anticipates this model to be replicated throughout the emerging economies of Africa, South and Central America, and other regions.”