AEMG, the media arm of LaserNet Group, signed a memorandum of understanding (MoU) with Falcon Media House in July. In a strategy update, Falcon also announced its aim to sharpen its focus on Quiptel’s patented suite of software and technology solutions to restructure its content division.

Commercial licensing agreement with AEMG

AEMG has now purchased a licence for the Quiptel Media Platform (QMP), including access to Q-Flow technology. The contract allows AEMG to act as both a regional reseller of QMP and to launch a direct-to-consumer OTT video service in Africa.

The service aims to launch in Q4 2017, and aims to reach 25 000 paying subscribers within 24 months. As part of the agreement, Falcon will receive a share of the revenues generated by the service.

QMP delivers streams using its patented Q-Flow technology. Designed to overcome the challenges of congested and slow connections to deliver content to the end user using an efficient and cost-effective route, it aims to enable seamless streaming over challenging networks and mobile conditions.

Rather than investing in hardware and laying new network cables, the joint solution aims to enable broadcasters and cable companies to increase their market share with a lower capital expenditure.

Ivan Bridgens, CEO Africa Enterprise Media Group, says, "We are delighted to strengthen our commercial partnership with Falcon Media House and Quiptel and deliver TeeVee Africa, a direct-to-consumer OTT video service for African consumers."

He adds, "This burgeoning market is often overlooked, and technology solutions designed for developed markets are typically not suitable to the harsh technology realities on the continent. Luckily, with QMP and Q-Flow, we can serve seamless video streams across any network and device, finally bringing exciting content to millions of African consumers."

Gert Rieder, chief executive of Falcon Media House, adds, "When we signed the MoU with AEMG in July, it was always our intention to move to a commercial arrangement fast. This deal is a testament not only to our ability to execute on our plans but also an important step in our joint efforts with AEMG to deliver seamless video streaming services to the African continent."

He adds, "More than half a billion people across Africa now subscribe to mobile services, with the number expected to grow to 725 million by 2020 – these are the defacto devices used to consume content. We are excited about our partnership with AEMG, and our ability to capitalise on this untapped market opportunity."

Strategy update

Since coming to market in March, Falcon has secured global partner agreements to deliver OTT services in Africa and Asia, as well as an MOU with TATA Communications (United Kingdom) Limited to collaborate on OTT services aimed at brands, content creators, content catalogues, and rights holders.

Falcon has also launched a beta version of a sports service together with The Eastern College Athletic Conference (ECAC). The aim of the company’s technology to disrupt the existing industry was further endorsed with the appointment of Diane McGrath (US), as the Falcon Media house chief strategy officer in June.

Quiptel’s technology and software patents will aim to drive the company’s primary business focus. The refinement also aims to simplify the company’s offering, where the Falcon board sees potential to provide a path to market for global brands, operators, and rights-holders that are under-served by existing providers.

The Falcon board has taken the opportunity to restructure the company’s interest in the Teevee Makers division. Teevee Makers will now become a separate entity independent of the Falcon Media House group.

As part of the new set-up, Teevee Makers will assume responsibility for the ECAC service under a new commercial licensing agreement. The ECAC service is expected to launch soon, with Quiptel as a technology supplier. By moving to a licence and revenue sharing model, the company aims to reduce its financial exposure while maintaining growth potential.

Rieder concludes, "We believe that sharpening our strategic focus on our proprietary technology will benefit Falcon, its customers, and shareholders both in the short and long-term."

He concludes, "We recognise, as do our customers, that the best returns for the company, in the fast-paced and dynamic video streaming market, will come from accelerating the development of our core Quiptel technology, which has already generated significant interest. The deal with AEMG is a clear validation of our new technology strategy."

For more information, visit Alternatively, connect with them on Facebook or on Twitter.