Australian Stock Exchange Forum to Offer BIG Finance Video Packages
Partnership with HotCopper Holdings Ltd
HotCopper Holdings Limited operates Australia's #1 stock market discussion forum, hotcopper.com.au. The site has over 700,000 unique users visiting every month to research and discuss ASX-listed stocks and its usership is comprised of a mix of retail, sophisticated and self-managed super fund investors, as well as fund managers, brokers and institutional investors. HotCopper listed on the ASX in September 2016 and has a current market cap of $18.5m.
BIG Growth Strategy
First Mover Advantage
The partnership with HotCopper is a natural step in the execution of BIG's growth strategy. BIG collaborate with industry sector specialists and achieve swift market penetration through the aggregated marketing of related video technology products in key markets. HotCopper will provide BIG video content as an integral part of its digital marketing package. The partnership is in alignment with BIG's global growth strategy and the Company is investigating further similar partnerships globally. The Company anticipates leveraging Australian financial market penetration and management intend to focus on providing BIG Finance products to overseas businesses as part of the Company's international growth strategy during 2018.
Barrier to Entry
BIG has successfully leveraged its first mover advantage in Australia. Through its acquisition of BHA Media and Food and Beverage Media from The Intermedia Group (TIG), BIG has effectively ring fenced Australian SMEs in the hair, beauty and hospitality verticals. New partnerships in the charitable sector with GoFundraise and the finance sector with agreements with ABN Newswire and HotCopper provide exceptionally strong market penetration and a barrier to entry for competitors across BIG's Australian vertical markets. See the link below.
As part of BIG's global growth strategy, the Company is building new divisions and developing products to cater to for specific verticals. BIG Finance will be one of these, along with BIG Cares. More are expected to follow.
Sonia Thurston Exec Director and CCO of BIG Unlimited said "Since first developing the BIG Cares video licensing packages for charities, we have been undertaking a proof of concept period and are offering larger, tailored video licensing packages aimed at corporate and larger businesses as BIG Finance branded packages. There is significant demand for video from SME's but also from larger businesses for video content that can be used to communicate with investors, stakeholders, employees and to provide corporate communication to the public at large".
Market Opportunity for BIG Finance Packages
HotCopper's CEO Ben Newport commented: "There is significant global demand from businesses for video content that can be used to communicate with investors, stakeholders, employees and provide corporate communication to the public at large. BIG Finance have a key role to play providing high quality video licensing services that specialise in finding innovative ways to broadcast the needs of the industry. We feel this enhances the Spotlight marketing solution we provide for HotCopper service users."
BIG's Social Media Video Review Platform
A Three-Pillar Business Model
BIG's business model is based upon three pillars which interconnect providing both a video and revenue ecosystem. Below is an overview showing how BIG Finance vertical integrates:
- Pillar One produces revenue via video subscription from SME's. BIG's proprietary technology and IP allows it to create high quality video at around 3% of traditional video production cost. The Company retain copyright of video content and licence its use to SME's for video marketing. Pillar One currently produces approximately 90% of the Company's revenue to date. This includes the sale of BIG Finance video packages
- Pillar Two re-purposes previously monetised Pillar One video content into shows and video and further monetises via sponsorship/advertising. Pillar One has produced over 30,000 videos and 150TB (approx120,000 hours) of video content to date. Revenue from Pillar Two is in its infancy and is anticipated to become a significant revenue stream and profit centre during FY2018. It is anticipated that the Company will offer short, specialist business features and shows for BIG Finance using previously filmed corporate video content. These will be suitable for streaming on the recently announced BIG Apple TV channel and for syndicating to third party broadcasters.
- Pillar Three curates BIG video content onto BIG's consumer facing platform and supplements professional content with sharable peer-generated content made via the Big Review TV mobile video app. The Big Review TV app and platform are undergoing IT upgrades and the app is due for official launch in early 2018. Monetisation opportunities from Pillar Three platform and app are from BIG data, provision of consumer analytics, advertising and sponsorship. These features will be available to business and finance clients for their own marketing purposes.
BIG Growth Strategy
The agreement between BIG and HotCopper reflects the Company's growth strategy whereby BIG partner with key industry specialists in each vertical market. The strategy is an effective and cost efficient way for the Company to swiftly penetrate key target markets as evidenced by its early partnership and eventual acquisition of The Intermedia Group's verticals in hair, beauty and hospitality. The HotCopper partnership with BIG will boost the BIG Finance brand through the aggregation of clients and the joint marketing the BIG Finance packages to retail, sophisticated and self-managed super fund investors, as well as fund managers, brokers and institutional investors.
Positive Roll Out of Global Growth Strategy
The Company continue to experience strong demand for video licensing products both domestically and internationally and anticipate that this trend will continue. The executive team are fully focused on delivering a balanced approach to expansion through vertical partnerships, aggregation and cost management whilst capitalizing on market opportunity and maintaining shareholder value.
Commenting on the Company's outlook, Richard Evertz CEO said "On a strategic note, the management team is focused on establishing BIG as "The Dominant Video Tech Force" in key sectors. In the finance space we expect to on board at least 200 ASX micro, small and medium caps businesses over the next 12months and attract the attention of larger ASX companies. BIG Finance packages have been in a proof of concept phase and generated a little under $1m to date. On boarding 200 ASX businesses is less than 10% of the total number of companies on the ASX and represents an estimated gross revenue of $4m for the Company (an increase of 400% growth from the ASX sector) We believe our agreement with HotCopper will help build our brand with a key financial audience and are intending to take the similar approach internationally. Watch this space, we feel that the opportunity for BIG really is unlimited".
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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 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.
HotCopper Holdings Ltd
Big Un Ltd