- BIG forms a Joint Venture (JV) with The Intermedia Group, (TIG) to jointly produce, publish and promote online TV shows to TIG's audience of over 500,000 Australian business professionals
- Joint Venture agreement validates significant revenue opportunity, market value and level of demand attached to BIG's curated video content (Pillar Two of BIG's business model)
- Conservative gross revenue potential from big brand advertising and sponsorship of the shows anticipated to be in excess of $4 million over next 12 months using existing resources
- Agreement also provides BIG with access to TIG's SME subscribers to whom TIG will actively promote and endorse BIG's SaaS based video packages
- The JV model is part of BIG's global roll-out strategy enabling BIG to benefit from similar strategic opportunities overseas
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About the JV and Monetisation
TIG's vertical markets closely align with BIG's existing client base and their large library of video content. As part of the JV, BIG will produce online TV shows specifically designed for these vertical markets, which will be delivered to TIG's subscribers and audience as part of TIG's digital publishing service. Each show will focus on a particular sector and the consumer and industry trends within it. Shows will be promoted on bigreviewtv.com, across TIG's digital publishing network, BIG's social media and their YouTube channel. Shows will also be marketed for syndication to relevant third parties and to traditional broadcasting media.
The JV validates Pillar Two of BIG's business model. Pillar Two is the curation of, sponsorship, publishing and syndication of BIG's vast quantity of video content. Currently BIG has over 60 Terabytes of SME video content. The JV is confidently expected to generate significant revenue for the Company within its existing business model and cost structure. Based on the anticipated revenue from each show, if only one show per week is produced in each vertical, the gross revenue potential amasses over $4 million per annum. Currently BIG have the resources to produce two TV shows per week without affecting the output or delivery of the current first pillar SME video production. This additional revenue opportunity does not require BIG to expand its current production resources.
The online TV show is expected to be highly attractive to TIG's existing advertisers as brand managers increasingly seek engaging video access to the Australian SME market. The shows are also expected to receive a high level of demand for inclusion from TIG's network of 500,000 SMEs readers. Under the terms of the JV, Intermedia will provide BIG access to its customer base of 500,000 SME readers for the purpose of promoting inclusion in the video shows and will actively promote the sale of BIG's SaaS subscription video packages. BIG currently experience around a 60% uptake of their video product from "cold customers" and anticipate at least the same or higher uptake from Intermedia's large B2B business audience. The JV optimises and consolidates BIG's first mover advantage and market penetration in Australia.
Intermedia is one of Australia's largest B2B media operation's and has extensive reach into Australian business decision makers/managers/owners. Intermedia engage their audience on a daily basis through a suite of print, digital and face-to-face media. Its online and print publications include Professional Beauty, Hospitality, Australian Hotelier, Bars and Clubs, Hotel Management, Appliance Retailer, Spa and Clinic, TimeOut Magazine, FoxSports Venues and InStyle. It has a readership of over 500,000 professionals throughout Australia and New Zealand.
The JV is expected to commence operations in September 2016 and will initially target audience members in the areas of hair and beauty, business travel and food & beverage, sectors in which BIG also has had ample experience and content. The joint venture company has been registered as BIG Intermedia Pty Ltd and will hold the jointly produced TV show assets. Richard Evertz (CEO of Big Un Limited) and Simon Grover (MD of The Intermedia Group) will hold joint CEO roles within BIG Intermedia Pty Ltd. Collaboration in the form of a JV arrangement with key industry players is in line with the Company's global growth strategy. This structure can be replicated overseas enabling BIG to offer strategic opportunities through additional international JV partnerships.
Brandon Evertz, Executive Director, Big Un Limited commented: "For the past 18 months we have been focussed on growing the business, developing our video content and rolling out our 3 stage business model. We are now looking forward to demonstrating the significant revenue opportunities available to BIG from Pillar Two of our business model. To date, BIG has demonstrated substantial growth from Pillar One revenue and we anticipate that this will continue and be significantly enhanced by Pillar Two revenue. This JV demonstrates the value of BIG video content. I'm excited to be joining forces with Intermedia and for us to be creating and delivering engaging online TV shows to our joint audiences"
Simon Grover, Managing Director, Intermedia commented: "We're delighted to be partnering with BIG to produce and promote online TV shows. BIG are Australia's largest producers of online video content. This JV provides a very strategic video solution. Firstly, it allows BIG/TIG to offer engaging content to large advertising clients, as video is becoming increasingly important in the marketing and promotion of goods and services. Secondly, the shows will be constructed to deliver quality video content to entertain, engage and inform our SME audience. In order to enhance the vertical community experience, our existing TIG audience will be given the opportunity to participate in these shows. This offering is expected to be highly sought after by our SME customers, giving them the chance to raise awareness and generate interest in their business. Thirdly, BIG's SME video packages provide unparalleled value to our customer base and every business is going to need video content to stay relevant"
Intermedia is one of Australia's largest B2B media operations and has extensive reach into Australian business decision makers/managers/owners. Intermedia engage their audience on a daily basis through a suite of print, digital and face-to-face media. Its online and print publications include Professional Beauty, Hospitality, Australian Hotelier, Bars and Clubs, Hotel Management, Appliance Retailer, Spa and Clinic, TimeOut Magazine, FoxSports Venues and InStyle.
Its brands are a vital source of information for Australian and New Zealand businesses. Solutions include print, digital and events. Intermedia employs over 100 qualified and highly successful editors, journalists, developers, sales staff, and event specialists who 'live and breathe' their industry.
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About Big Un Ltd
Big Un Ltd (ASX:BIG) is the parent company of Big Review TV Ltd. Big Review TV is a social media, video review platform. BIG are innovative disruptors in the online video space delivering subscription based video technology products and services. The Company has operations across Australia and in New Zealand, the United Kingdom and the United States, Hong Kong, Singapore and Vancouver and was listed on the ASX in December 2014.
Big Un Ltd