The price of shares in content services company Vonetize (TASE:VNTZ) spurted over 10% today on the Tel Aviv Stock Exchange (TASE), after the company announced that it was negotiating the distribution of its services in a number of African countries.
Among other things, Vonetize announced that it was negotiating with South African content services provider CrystalWeb for the distribution of Vonetize's SmartVOD services through other Internet providers with which CrystalWeb cooperates in infrastructure and Internet distribution. In the initial stage, distribution will be in the leasing and sale of content items (TVOD and EST).
Under the emerging deal, the parties will share the revenue from the services (after the deduction of agreed expenses), but the company will receive $960,000 in the first year. The agreement also stipulates that if the company's share of the revenue exceeds this amount, it will be paid the difference on a monthly basis. The parties plan to launch their cooperation for customers in September 2017 for one year, with an option for a two-year extension. When the negotiations will be completed is unclear.
Vonetize is also in initial contacts with a number of other companies in Africa, including the MTN cellular group, for distribution of its SmartVOD services in Congo; the Vodacom cellular group for distribution in the Republic of the Congo; Vodafone for distribution of Vonetize's services in Zambia; and cellular company Wind Hellas for distribution in Greece. Commercial terms have not yet been settled in these negotiations.
Vonetize made the headlines recently by signing a cooperation agreement with Triple C Cloud Computing, in which that company will base its television package on Vonetize's SmartVOD service. The packages will be offered at a starting price of NIS 50 a month.
Vonetize's share price has zoomed 87% this month, but has dropped more than 12% since the beginning of the year, putting its market cap at NIS 63 million.
Published by Globes [online], Israel Business News - www.globes-online.com - on April 26, 2017
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