November 17th, 2016
Agreement offers potential for exposing 20 million viewers to the SmartVOD service
Noam Josephides, CEO of Vonetize, commented, “I am excited to report on entering an agreement with a major, high quality media body in Tanzania. The potential that this new territory offers Vonetize is aligned with our expansion strategy in Africa. Our new partners bring strong capabilities and a significant number of customers as well as marketing and distribution capabilities.“ According to Tanzania’s communication ministry, the country’s three top cellular operators serve 30 million active users. This is our target audience. THT Media and Clouds Media have TV and radio stations which reach out to 15 million people in Tanzania daily and 20 million people in general.
Vonetize today reported it has entered an agreement with THT Media and Clouds Media Group for exclusive distribution and marketing in Tanzania of Vonetize’s SmartVOD service for three years. THT and Clouds are media groups which to the best of Vonetize’s information, operate TV channels, radio stations, music label and press in Tanzania. The parties are planning to launch Vonetize’s service in Tanzania in early 2017.
Under the agreement, THT and Clouds undertook to exclusively distribute, market and promote Vonetize’s SmartVOD app among their customers in Tanzania according to a marketing plan coordinated by the parties. Among others, the deal includes an undertaking to promote the service with TV, radio, online and additional ads. Under the agreement, Vonetize will provide an end-to-end solution which covers the required technology, its operation, content right and a collection system.
In consideration for this, the Company will be entitled to 65% of the service’s net revenues in Tanzania, namely the revenues from the service less content costs, taxes, clearing and the cost of transmitting the video to the end users.
The companies have also agreed on a mechanism for selling content benefits to boost sales. These benefits include a free, prepaid one-month subscription to the Company’s services, redeemable for one year. According to this mechanism, the Company will be able to offer prepaid benefit package which THT and Clouds will sell to their customers. The more benefit packages are sold, the larger the discount that Vonetize will award on the services’ purchase price (up to 35%).
Vonetize is negotiating with additional companies in Africa on distributing the SmartVOD service in additional countries.