QYOU Media Inc. (TSXV:QYOU) announced the launch of The Q India on the Amazon Fire TV streaming device platform on October 16, 2020
SmallCapPower | October 19, 2020: The Q India launches on Amazon Fire TV. QYOU Media Inc. (TSXV:QYOU) announced on October 16, 2020, the launch of The Q India on Amazon Fire TV. In April 2017, Amazon Fire TV launched in India. Since its launch it has become one of the top streaming devices in the country. Amazon has been growing Fire TV’s presence in the Indian market organically through new features such as HD streaming and unique channel offerings such as The Q India. The Q India will be featured on Amazon Fire TV as a linear channel and will also offer VOD content. According to data compiled by TechCrunch, Amazon has invested US$6.5B in India as January 2020, as the company views India as a significant growth market. We believe that this is a considerable development for QYOU Media and should accelerate the Company monetization plan through advertising revenues.
Figure 1: Q India Now Available on Amazon Fire TV
Source: www.amazon.com, QYOU Media Corporate Website
About Amazon Fire TV
Amazon Fire TV is a video streaming device by Amazon that offers thousands of VOD and Linear Channels, similar to the Roku device or Apple TV, allowing a regular TV to become a smart TV. Fire TV was launched in 2014 as Amazon’s response to capitalize on the cord-cutting trend begun by YouTube and Netflix. It has seen significant growth since launch and ended 2019 with 40M active users globally, adding 10M user in 2019 alone, surpassing Roku’s 36.9M users during the same period, becoming one of the dominate players in the digital streaming market.
Leading distribution partners for The Q India include Jio TV. One of The Q India’s top distribution partners includes the app-based platform Jio TV and its recently-launched broadband service Jio Fibre. We believe that the Jio partnership is substantial, as Jio is one of India’s premier telecommunications company. Jio Platforms has recently received investments of over $20B during the Covid-19 pandemic, from a list of investors that includes Google, Facebook, Intel, Qualcomm, KKR, General Atlantic, Silver Lake, Vista and the UAE Sovereign Wealth Fund. Jio Platforms now houses an array of media operations, including music streaming service JioSaavn, fibre-to-the-home service JioFibre, on-demand live television service JioTV, and payments service JioPay. It also has a 5% stake in Bollywood streaming service Eros International.
Figure 2: QYOU Media Comps Table
Source: Cap IQ, Ubika Research
Undervalued compared with peers. QYOU Media currently trades at a 0.9x F2022E EV/Sales multiple, a discount to peers, which trade at a mean multiple of 2.2x. With multiple new distribution and partnership agreements The Q India has recently signed (read our note here), coupled with it launch the Amazon Fire TV, we believe that this valuation gap should narrow as QYOU successfully executes on its Q India strategy of monetization of its platform via advertising and influencer revenues.
QYOU Media Inc. is a media company focused, via its 88% owned subsidiary QYOU Media India Pvt. Ltd., on ‘Young Indians’ being the approximately 400M 20 to 30-year old’s who are a subset of the Millennial and Gen Z market in India. QYOU Media produces ‘The Q India’, a Hindi-language television channel with a growing VOD content library, with over 800 programs and counting, that is now available to approximately 610M users via 55M television homes with partners including TATA Sky, Airtel DTH & SitiNetworks; 355M OTT users via platforms including MX Player, ZEE5 and Dish Watcho; and 200 million users on mobile and digital platforms including JioTV, Airtel Xstream, SNAP and Chingari.
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