Motive Television Plc Regulatory News (MTV)

Motive Television PLC

("Motive" or the "Company")

Business Update

London 5 February 2014: Motive Television PLC provides a general business update.

During the previous 12 months, Motive has moved from its development phase into a growth stage as the Company has secured new clients, continued deployment of its technology with existing customers and launched new products in multiple markets. The Directors believe that this has positioned the Company for further growth in 2015 as Motive exploits its technology and products.

Digital business products and markets

Content Express™

Content Express™ is Motive's non-linear hybrid distribution technology first completed in 2009 and continually upgraded since then. It provides digital terrestrial and satellite broadcasters with the ability to offer Video-on-Demand, Catch-Up TV and other services to their subscribers at low cost and without major capital expenditure. The technology has been enhanced over the past five years to include high definition and 3D content distribution and integration with IP delivered content for an HbbTV solution. The Company is currently considering a client-based project to deliver 4K UHD programmes over Content Express™.

Content Express™ has been implemented at Mediaset since late 2009 as part of its Premium pay television services. Subscribers have been able to watch movies and other titles in standard, high definition, and even 3D using the platform based on Motive's technology. In September 2014, Motive announced that its 100% owned subsidiary, Motive Television Services Limited ("Motive Services"), had signed a Renewal Agreement with Reti Televisive Italiane S.p.A. ("Mediaset) to continue to provide support and other technology services for the maintenance and delivery of the Head End Solution. Additionally, Motive agreed to demonstrate the Company's Tablet TV technology for evaluation by Mediaset executive and commercial management regarding a launch in Italy, for which discussions remain in progress. 

The first satellite implementation of Content Express™ was with Digiturk, the largest satellite broadcaster in Turkey with over 2.5 million subscribers. Digiturk launched their Motive-based services in January 2013. In January 2014, Motive announced it had been informed by Digiturk that during 2013, approximately 115,000 set-top boxes containing Motive's technology were provided to subscriber homes. During 2014, it is estimated that an additional 60 thousand STB's were provided to subscribers by Digiturk bringing the total deployment of Motive's Content Express™ to over 175 thousand homes in Turkey by year-end 2014. Motive is currently in discussions with Digiturk regarding further enhancements and features to this platform.

In July 2012, the Company announced a five-year contract with Central European Media Enterprises ("CME") to develop, install, and integrate its Content Express™ solution at CME's flagship television station in Prague. Work commenced in summer 2012 and continued through 2013 during which time up front progress payments were made. In the fourth quarter of 2013, the Company completed the installation of the head-end solution at Nova Television in Prague. Following an ownership and management change the project was paused. Motive is currently in discussions with major Czech communications companies with regards to implementing its technology in that market.

In December 2012 Motive signed a multi-year contract with Siyaya Free To Air TV (PTY) Ltd. of Johannesburg, South Africa. During 2014, Motive begun installing Motive's Content Express™ platform in South Africa in anticipation of commercial operations over satellite and digital terrestrial broadcast. In November 2014, the Company was informed that Siyaya had officially satisfied all the requirements to be issued an Individual Commercial Subscription Broadcasting Service License. Motive understands that Siyaya intends to begin operations in mid-2015.

Tablet TV

Tablet TV is Motive's global product to enable viewing and recording of broadcast content and receive Video-on-Demand on tablets and mobile devices. This technology was developed, and its patent applied for, during 2012-2013 and is now being marketed to consumers in the United States in partnership with Granite Television Corporation and in the United Kingdom by Motive.

Motive completed the development of its basic Tablet TV product for the United States and the United Kingdom, and commercially launched the product in both markets in time for the Christmas season. In both cases the Company decided to provide Tablet TV to a limited number of early adopters and use the feedback from them to eliminate bugs and further develop the product.

The first users of Tablet TV were positive and their suggestions are being acted upon to improve the user experience in subsequent updates. All upgrades, improvements and new features will be implemented through updates to the Tablet TV Apps.

Upgrades, additional features and functionality and the ability to receive Tablet TV on more devices will be provided during the next months, and monthly or more frequent releases of the US and UK Apps are forthcoming. Recently, Motive announced its cooperation with Google to incorporate Google Chromecast into Tablet TV, and make it possible for those who own both Tablet TV and Chromecast to transfer television on the tablet from Tablet TV to big screen televisions.

The other planned app releases in the coming months will be available on Android tablets, iPhones and other smartphones, greatly expanding the potential market within the US and UK.

In the United States, the Company attended the Consumer Electronics Show (CES) where it shared headlines with several new over-the-top (OTT) TV platforms. Tablet Television LLC and Motive are in discussions with major broadcasters, pay television companies and technology providers about possible combined OTT and OTA (over-the-air) offers to viewers who might consider this competition a low-cost, high-value alternative to cable. These discussions are planned to lead to a full rollout in the United States during 2015.

In the UK, Motive is meeting with major broadcasters to address their concerns and enlist their marketing support of Tablet TV UK while seeking trademark brand license from Freeview. Additionally, the Company will soon participate with a major UK-based communications company in their internal beta test to evaluate future cooperation.

Internationally, the Company has been in discussions with broadcasters and digital platform operators in several European countries to extend Tablet TV to these new markets.

Maritime and BYOD Product (bring your own device)

On 27 August 2014, Motive announced that Motive Services had signed a Cooperation Agreement with Twin Peak S.A of Athens, Greece ("Twin Peak") to develop and integrate Content Express™ with Twin Peak's VoD services for deployment in the global maritime industry and for the nation of Greece.

Motive has now completed the development of this maritime BYOD capability for commercial ships, private yachts, oil rigs, ferries, and cruise ships worldwide. It has the advantage of serving the TV and multiple devices with a significantly lower cost than other solutions on the market according to Twin Peak, which is responsible for delivering the content platform to the vessels and marketing the combined product. The Company anticipates a pilot implementation in the near future and commercial deployment before the summer [of 2015]. The global market for Motive's BYOD technology is potentially a very large and profitable opportunity for Motive.

Other developments

In November 2014, Motive announced that it has reached agreement with CCAN 2005 Inversiones Societarias, S.C.R., S.A. De Regimen Simplificado (''CCAN'') to acquire the remaining 32.3 per cent. of Motive Television SL, (its Spanish subsidiary), that it does not own for €600,000 (approximately £480,000). This agreement also resolves the two-year legal dispute between Motive and CCAN that has been active in the courts in Spain and the United Kingdom. The Company awaits action from CCAN to complete this transaction.

In March 2014, the Company joined the HbbTV Consortium, an industry alliance of broadcasters, broadband providers, and consumer electronics companies to standardize the delivery of services to hybrid devices, for the purpose of becoming part of these standards.

Motive continues to file for additional patents in the United States and Europe and intends to add to its IPR portfolio during 2015. In May 2014, the Company filed for patents in the United States related to it Tablet Television technology and these and other filings are extended worldwide through the Patent Cooperation Treaty (PCT).

Production division

Motive Television Ltd:

Motive's content division, based in Dublin, produced 14 hours hours of prime time television in 2014: "#darndale - The Edge of Town" (3 x 52 mins for TV3); "A Sporting Chance", made in collaboration with Munster Rugby for Setanta Sports; and "Prison Families 2" for TV3, following on the critical and ratings success of the first series. In addition, "The Long Walk", (a look at Irish golfers on the edge of the PGA tour), and "The Notorious" (featuring an in-depth look at the progress of UFC cage fighter Conor McGregor as he battled his way to the top), were delivered to Setanta Sports and RTE respectively. Motive also produced a new six-part series with real celebrity swagger for RTÉ 2, a follow-up to "The Notorious", entitled "The Notorious: The Series".

Financial results

The Company anticipates announcing its 2014 preliminary results in June 2015.

Enquiries:

Notes to Editors

Motive Television provides broadcasters and pay television operators with enabling technology that provides opportunities to deliver highly valued services to viewers that generate additional income and retain existing subscribers, comprising:

Content Express™

Today's television viewers are demanding the ability to watch whatever they want when they want it on any screen, and Motive's Content Express™ makes that possible without having to build new networks. Content Express™ software provides secure delivery and management of non-linear digital content across any type of broadcast network to any consumer-facing screen or device. Motive has deployed it in both single and hybrid distribution systems that combine broadband access with traditional distribution for an optimal solution.

Motive's Content Express™ solutions platform provides a one-stop shop for digital terrestrial broadcasters, satellite, DTT cable pay television platforms, and Internet OTT content providers to offer new services including: Video on Demand (VOD and SVOD), Catch-up television, Tablet Television, Targeted advertising for VOD, Mocast for 4G LTE, Virtual channels and Video2Go.

Tablet TV

With a proprietary app and T-Pod antenna-tuner, tablet owners around the globe can watch and record all the programming currently broadcast over digital terrestrial channels. Additionally, Tablet TV subscribers have the ability to download a selection of video-on-demand movies and programmes without the need for Internet access and, when they are connected, use integrated social networking and access anything available over the Internet.

Motive's content division is:

Motive Television Limited, a Dublin-based award-winning independent production company that produces factual programmes for Irish broadcasters. It specializes in live sports production and sports documentaries and also produces factual and entertainment series.

Motive Television was founded in London in 2005 and its shares are quoted on the London Stock Exchange (AIM). 

http://www.motivetelevision.co.uk