LONDON (Alliance News) - Motive Television PLC Monday said it has signed an operations and services agreement with Siyaya Free To Air TV Pty Ltd of South Africa, to support a planned platform launch in the first half of next year.
Under the agreement, Motive will install, integrate, and operate Siyaya's video-on-demand platform in conjunction with the expected launch of Siyaya's television services on the Sentech Freevision satellite platform planned in the first half of 2014.
Motive Television said both parties have agreed to a period of exclusivity for South Africa for the term of the contract, until and unless both parties agree to make the video-on-demand platform available to third-party broadcasters.
Motive said that, once Siyaya has won a television licence for digital terrestrial broadcasting, and subsequently launches services over digital terrestrial television, it 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 video-on-demand platform.
According to the agreement, Motive will receive upfront set-up fees plus operating fees based on a share of monthly video-on-demand platform revenues.
The contract will provide Motive a guaranteed minimum equivalent to GBP1.07 million over the next five years. However Motive said it estimates the probable value of this project to be approximately GBP2 million.
Earlier this month, Motive TV said that its Irish television-production subsidiary Motive Television Limited had signed two production contracts for around GBP390,000, and said that it had signed a memorandum of understanding with South Korea-based icube Corp. to develop retail products that allow Freeview broadcast television to be received on mobile devices.
Shares in Motive Television were down 0.6% at 0.0171 pence per share Monday morning.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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