Motive Television signs contract with South Africa's Siyaya TV

Monday, December 30th, 2013 
Motive Television logo

Launch on Freevision satellite platform planned in the first half of 2014

LONDON — Motive Television PLC (AIM: MTV.LN), the London-based provider of revenue enhancing technology-based solutions to the television industry, announced today that its wholly-owned subsidiary, Motive Television Services Ltd (“Motive”) has signed a final Operation and Services Agreement (“the Agreement”) with Siyaya Free To Air TV (PTY) Ltd. of Johannesburg, South Africa (“Siyaya”). The contract follows the commercial terms agreed in the Heads of Agreement announced previously on 16 September 2013.

Under the Agreement, Motive will install, integrate, and operate Siyaya’s Video-on-Demand (“VOD”) platform in conjunction with the expected launch of Siyaya’s television services on the Sentech Freevision DTH satellite service in the first half of 2014.

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 16 September, the Company estimates the probable value of this 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.

Leonard M Fertig, Chief Executive Officer of Motive Television PLC, commented: “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.”