During the quarter, the company signed a commercial agreement with the Australian National Basketball League (NBL) to launch personalised video services to Australia audiences.
Basketball has more than one billion followers globally and as part of the agreement the NBL is financially incentivised to introduce Linius services to all basketball leagues around the world.
The company expects the NBL to go live with a service based on Linius technology in the current quarter.
Racing.com and Essendon Football Club
Linus also signed racing.com to a master services agreement (MSA) and deployed an initial implementation of a virtual-video experience on its website during the Spring Racing Carnival. Betting on horse racing in Australia alone generates $18 billion in annual revenues and globally hits more than $116 billion each year.
The company also signed its first sports team with the Essendon Football Club using the Linius Club Solution.
In addition to delivering personalised TV to their fans, the company expects clubs to use Linius technology for player development and coaching, media editing, archives and breaking news.
The Club Solution is also being rolled out through distribution in Europe via Swanbay, a digital content and engagement company.
The cash balance at December 31, 2019, was $3.182 million, inclusive of the capital raisings in the quarter.
The expenditure for this quarter and the coming quarter reflects reduced costs from restructure of the companys engineering function.
The cost impact of these efficiencies is expected to further improve in subsequent quarters with expenditure reductions in the vicinity of $300,000 per quarter to around $1.9 million.
Future market opportunity
While validation of the companys technology in terms of its first cash receipts was an important step, and while the company expects revenue and cash receipts to grow from these initial deals, the company considers the significance of the deals far greater in terms of outlining the future market opportunity.
In the US alone, on the four largest sports networks – ESPN, ESPN2, Fox Sports and NBC Sports Network – viewers watched over 1 trillion minutes of sports in 2018.
Linius sees an opportunity to build personalised channel capabilities for its clients, where viewers can construct their own personal channels to display their preferred content,
At the annual general meeting during the December quarter, the company demonstrated this capability in the form of a personalised soccer channel constructor where viewers could select their favourite team, favourite player, favourite sports news programs, and even upload photos, choose a theme and connect to social media.
An important part of the companys commercialisation strategy is to drive a transRead More – Source