Crowd sourced video content provider Newzulu Limited (ASX:NWZ) has teamed with online video technology company Ooyala to refer clients to each other on a revenue sharing basis.
Newzulu has grown a global community of reporters, photographers, and videographers in 198 countries over the last eight years.
Ooyala's main product is a platform that enables broadcasters, website operators and media companies to build more engaged audiences and manage, monetise, analyse, and optimise video programming, video streaming and video syndication.
The agreement provides Newzulu with a new channel to market via Ooyala’s client base and global sales infrastructure.
Newzulu said it expects the deal with Ooyala to deliver a material increase in revenues associated with its Newzulu Platform and Newzulu Live businesses.
Ooyala was acquired by Telstra Corporation (ASX:TLS) in 2014 after it led a US$35 million round of financing in Ooyala in 2012.
Under the Agreement, Ooyala and Newzulu will collaborate on sales opportunities and pursue client opportunities where its Platform and Live crowd-sourced content platforms will integrate with the Ooyala platform.
This would enable crowd-sourced video to be delivered for clients seeking to implement the product offerings of both companies.
Alexander Hartman, executive chairman of Newzulu said: “Newzulu is delighted to be working with Ooyala as a sales and referral partner.
We are excited by the opportunity to offer the Newzulu Platform and Newzulu Live product suites to Ooyala’s extensive global client base and to leverage the significant global sales infrastructure of Ooyala.”
Momentum building
Newzulu has a 150,000-strong community of contributors to report the news as it breaks from crowd-sourced, livestreaming news.
Essentially, it allows anybody, anywhere, with a smart phone and a story, to share news, get published and get paid.
Editors validate every contribution to the highest journalistic standards before sending it to partners’ systems. Metadata checks are performed on all contributions and with comprehensive story verification.
Newzulu signed a long-term strategic partnership agreement for news and multimedia distribution, syndication and sales with Tribune Content Agency, part of the long established media company Tribune Publishing.
Tribune's network of 2,000 contributors should maximize audience reach, advertising revenues and content license fees
In July, Newzulu clinched a key content syndication agreement with UK-based independent global video news agency Videoplugger.
Videoplugger specialises in the syndication of much watched celebrity, showbiz and sports-related online video content for media and commercial use worldwide.
It will distribute content from Boomzulu (Newzulu’s celebrity and showbiz vertical) and Sportszulu (Newzulu’s sports news vertical), along with Newzulu’s crowd-sourced post-live video news content.
Fast growth of video content
Cisco (NASDAQ:CSCO) has forecast that consumer internet video traffic will make up 80% of all consumer Internet traffic in 2019, up from 64% in 2014.
While Adobe (NASDAQ:ADBE) has also previously noted that 38.2 billion videos were watched online in the second quarter of 2014, up 43% over the same quarter the previous year.
Analysis
With online video content traffic on a fast growth track, Newzulu is positioned to capitalise on this with its crowd sourced video content business model.
The agreement with Telstra owned Ooyala is a feather in the cap as Telstra plans to use Ooyala’s software and services to deliver its television content online and, further, to resell Ooyala’s platform to other media companies and corporations.
This follows on from a strategic partnership agreement for news and multimedia distribution, syndication and sales with Tribune Content Agency, part of the long established media company Tribune Publishing.
While a key content syndication agreement signed in July with UK-based independent global video news agency Videoplugger in July demonstrates the momentum building and recognition of Newzulu's value adding content.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.