Linius Technologies ready to roll out replicable solutions to global markets

Linius Technologies Ltd (ASX:LNU) has commercially validated its technology in recent months, securing key clients in the targeted customer segments of corporate communications, sports and news. The company is confident that, having the technology commercially validated in these core customer segments, it can now roll out replicable solutions into mega markets via: Further direct sales; Established relationships with Microsoft, Amazon, IBM; Other global co-sell partners such as Swanbay in Europe; and OEM. By partnering with global and local strategic resellers, the company is building a channel to market which it believes will scale sales globally into large clients significantly faster and more cost effectively. Corporate communications The video conferencing market size surpassed US$14 billion in 2019 and is anticipated to grow at over 19% compound annual growth rate (CAGR) between 2020 and 2026. In April 2020, marketwatch.com reported there were more than 200 million Microsoft Teams meeting participants in a single day, generating more than 4.1 billion meeting minutes and theverge.com reported that Microsoft Teams now has 75 million daily active users and Zoom over 200 million. The COVID-19 pandemic has been the driving force behind a once-in-a-lifetime generational shift to working from home and an increased need for corporate communications via videoconferencing. LiveTiles partnership Linius has partnered with global software company LiveTiles Ltd (ASX:LVT), which provides an intelligent workplace intranet platform for SharePoint, Azure and Office365, to deliver an enhanced video meeting solution for the commercial, government and education markets. The partnership will see the development of a LiveTiles powered user interface for Linius’ hyper-personalised video service, together with integrations between LiveTiles’ Intelligence Workplace software and Linius’ video service. The commercial value is currently US$3 per user per month. Linius can personalise videos to each viewer Sports broadcasting According to sportsbussiness.com global sports media rights hit $51 billion in 2019. The UK's Premier League is the most-watched sports league in the world, broadcast in 212 territories to 643 million homes and a TV audience of 4.7 billion people and in Australia, the AFL has 1.1 million club members. In the US, the NBA had over 1 billion unique viewers of their 2018 season and 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. Essendon Football Club The company signed its first sports team with the AFL's 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. Sky Italia In June the company received a purchase order from Italy’s largest pay-TV broadcaster, Sky Italia, to trial the personalised TV solution developed by Linius. Linius will develop a Personalised Channels proof-of-concept (PoC) for Sky Italia to conduct a closed trial to: Test user engagement and reaction to personalised TV; Facilitate commercial modelling for future public release to its subscribers; and Provide insights into future product design. The trial is expected to focus on sports and notably Serie A, EPL and Champions League football. Racing.com   Linus also signed racing.com to a master services agreement (MSA). Betting on horse racing in Australia generates $18 billion in annual revenues and globally hits more than $116 billion each year. The client’s objective is to drive longer and deeper viewer engagement of the Racing.com platform with Linius’ to provide hyper-personalised video experiences via a bundled service under a fixed monthly fee. Grafa subscribers will be able to tailor their own business news channel News industry In the US alone, adults over the age of 18 watched more than 27 billion minutes per week of national cable news programming, and across all media including smartphones, 73.5 billion minutes per week of news was consumed. Reuters reported in 2019 that short-form video remains the most popular format for news consumption (straight news clips or crafted with music and subtitles). Media consumption has reached unprecedented levels this year with the COVID pandemic, and the company considers this a substantial market opportunity. Grafa signed In May, Linius signed a commercial agreement to deliver hyper-personalised video experiences to Grafa subscribers, a new financial charting software platform planned to launch in August 2020. Linius technology will enable subscribers to personalise finance and business video content based on their interests, with users able to input their preferences encompassing economic data, stock markets, forex and cryptocurrencies to effectively build their own bespoke business news channel, tailored specifically to them. Grafa will pay Linius a minimum fee of US$5,000 per calendar month, with an initial contract for 8 months, targeting Australian Investors, with future roll-out plans to expand globally in 2021.