QYOU Media Inc. (TSXV:QYOU) announced recently that it has entered into a long-term distribution agreement with Ethnic Channels Group
SmallCapPower | November 12, 2019: QYOU Media Inc. (TSXV:QYOU) (OTCQB:QYOUF) Thursday announced what it is likely its largest, and most significant, partnership agreement to date. On November 7, 2019, QYOU said it has entered into a long-term distribution agreement for its flagship networks, “The Q India” and “Q Polska,” with Ethnic Channels Group, the world’s largest ethnic broadcaster that operates more than 80 television channels in more than 20 languages throughout the globe, serving the multicultural populations in Canada, U.S., MENA (Middle East and North Africa region), and Australia.
QYOU Media is a growing global media company, creating media products powered by the world’s top online influencers. Founded and created by industry veterans from Lionsgate, MTV, and CinemaNow, QYOU’s Millennial and Gen Z-focused products including linear television networks, genre-based series, mobile apps, and video-on-demand formats that reach more than 500 million people throughout the world. QYOU makes short video clips that can be consumed on mobile or through apps such as Snapchat, Facebook, Twitter, other Social Media, and Internet streaming networks.
QYOU Media sees tremendous growth potential in its Q India and Q Polska networks, as the Company estimates the Indian immigrant community at 15 million strong globally in addition to more than 20 million people of Polish ancestry living outside their homeland. That being said, the India market is where QYOU expects most of its upside. The Company launched Q India in late 2017 and it is now a fully-localized Hindi entertainment channel, reaching more than 33 million TV homes and nearly 300 million mobile users. And, QYOU Media hopes to reach over 800 million consumers in India by the end of 2019.
According to the Company, India is the second-largest TV market worldwide with 780 million viewers, and the India Media and Entertainment sector is set to achieve CAGR of 14% and will nearly double over five years from 2016 -2021, compared with the global growth average of 4.2%. By 2021, there is expected to be 1.4 billion mobile connected devices in India.
What is encouraging for QYOU Media investors is the expected revenue growth coming from India. Ad sales are expected to begin to generate revenue for Q India during Q4/19. Management anticipates Q India to generate revenue of ~4.5M in FY 2020E. Major catalysts driving revenue include being included in the Broadcast Audience Research Council (BARC) India, which is the Indian TV ratings agency (like Neilson in the United States), and being included in BARC, which is expected to drive advertising revenue as advertisers use BARC ratings to gauge viewership data for media providers. Additionally, Q India is planning to add 750M subscribers to its platforms over the next year. The Indian digital advertising market is forecast to grow at CAGR of 32% by 2020, according to QYOU.
“We expect FY 2020 to show continued growth in both of these segments (India and influencer marketing) alongside increased opportunities to reinvigorate other areas of our business via new strategic partnerships,” said QYOU Media CEO Curt Marvis, in a statement.
Influencer marketing is, indeed, a high-margin business with repeat customers for QYOU Media, as the Company has worked with more than 3,000 influencers whose total number of followers exceeds 650 million.
QYOU Media stock is currently trading at $0.06 a share with a market capitalization of approximately C$5.2 million.
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