NetPlay TV plc (AIM: NPT) continued its recent pace of contract wins for its interactive TV gaming products this morning, announcing that it had signed a five year broadcast deal with Five. Five is wholly owned by RTL Group, one of the world's largest media businesses.
The deal, which was leaked in the Sunday Telegraph yesterday, will see NetPlay TV’s SuperCasino.com live interative TV show broadcast on Five’s terrestrial channel. The show will initially be on air from midnight to 4am on Thursday, Friday and Saturday starting on 17 September, before extending to six nights a week by October and seven nights a week in the beginning of 2010.
Five had been trialling SuperCasino.com over the past month using the channel’s teleshopping window.
“This agreement is a landmark deal for both parties,” Netplay commented. “Five will be the first UK national terrestrial broadcaster to take advantage of the new OFCOM teleshopping rules that allow terrestrial broadcasters to air up to six hours of teleshopping in a 24 hour period.”
As part of the deal, Five has been granted an option of a 5% stake in the NetPlay TV at a strike price of 28.5 pence per share. The options are exercisable from the first anniversary of signing the agreement and will cease six months post termination of the five year relationship agreement.
“The initial five year deal with Five reflects our confidence in the product and its suitability for the medium of television. The four day, four week test on Five confirmed the massive opportunity interactive TV gaming brings,” commented Martin Higginson, CEO of Netplay TV.
Netplay also released a trading update alongside the new contract win.
Overall, the company expects to meet expectations with at the revenues level, but profits are expected to come in lower due to delays in moving the SuperCasino.com operation offshore and the impact of the Company exiting the premium rate telephone business.
“NetPlay TV believes that the decisions taken to focus on terrestrial TV opportunities, exit the premium rate telephony business, invest in robust technology and delay the move offshore of the SuperCasino.com business have been the right ones for the long term success of the Company.”