We believe the following key strengths distinguish us from our competitors and position us for significant growth in the future.
Strong in-house software engineering and development capabilities
The platforms which our digital content is featured and viewed from were developed by our in-house technical development team, and since its inception in 2012 has been periodically enhanced throughout our operations.
Our technical know-how in software engineering and extensive experience in digital content delivery gives us an advantage in the industry as we have the benefit of both the technology and commercial aspects of the business, allowing for robust yet flexible business operations. It also allows us to be time and cost efficient and remain innovative in the development and enhancement of our platforms for subscribers, which is an advantage in an increasingly competitive and dynamic market. Having in-house software engineering capabilities enables us to tailor the design and functionality of platforms to appeal to target consumers’ preferences. In addition, it gives us control on the release of periodic upgrades and enhancements to improve the functionality and subscriber experience to attract new subscribers and retain existing subscribers, which in turn means that we respond faster to market trends as we do not rely on third party software engineers to design such upgrades or enhancements. Our technical proficiency and industry knowledge can be applied to various business models such as digital media and content delivery, social media, platform licensing, digital advertising and e-commerce, which grant us flexibility in our revenue model and enables us to respond swiftly to market demands for software engineering.
We believe that our software engineering and development capabilities and our knowledge of digital content delivery in Malaysia represent a core competency and key competitive advantage in comparison to other digital content providers and platforms. This will enable us to replicate our performance in Malaysia in our business operations in the Southeast Asian and South Asian region, including Indonesia and Cambodia which we have a presence in, as we take advantage of our knowledge of the relevant industry in Southeast Asia and our ability to implement our business model in other Southeast Asian and South Asian markets.
Our relationships with the four largest Telcos in Malaysia are significant to our development and operations. According to the Frost & Sullivan Report, the aggregate market share of the four largest Telcos in Malaysia in the telecommunications industry was 89.5%, in terms of gross revenue in 2016. The master content provider agreements or arrangements we enter into with the Telcos in Malaysia provide for our digital content to be distributed under the Telcos’ brand, or under our own brands. In both instances, our digital content is distributed as part of the Telcos’ VAS to the Telcos’ subscribers, which allows the Telcos to generate additional revenue from the VAS provided. We believe that such arrangements, which contribute to the revenue of Telcos, provide an incentive for Telcos to continue to support our Digital Content Services.
With our arrangements to grant the Telcos in Malaysia the rights to market and distribute our digital content as part of their VAS to their subscribers, we have access to the Telco’s vast and readily available subscriber base and direct charging through the Telcos’ secure, reliable and easy to use billing gateways and this allows us to realise cost synergies in the sales of our digital content. For those arrangements whereby our platforms are marketed under the brands of the Telcos in Malaysia, this gives us an advantage in the marketing of our digital content as we affiliate our platforms and channels with the brand image of the relevant Telco which then enhances the appeal of our digital content and builds trust from the Telcos’ subscribers in our product quality. We believe that our established relationship with the four largest Telcos in Malaysia places us in an advantageous position to compete with other digital content providers as we are able to access the Telcos’ vast network of subscribers in association with the Telcos, being a powerful marketing tool, and also ensure prompt payment for our Digital Content Services.
We have entered into a new master content provider agreement with a fifth largest Telco in Malaysia and intend to integrate our platforms with the Telco’s system and are expected to commence the provision of our digital content services in the second quarter of 2018. We are also in negotiationto enter into a master content provider agreement with another Telco in Malaysia, the key terms of which have been principally agreed on and are largely in line with our agreements or arrangements with the four largest Telcos in Malaysia. We expect to sign this sixth agreement in the second quarter of 2018.
Established and mutually beneficial relationships with the four largest Telcos in Malaysia
With years of operation and expansion, the Company has become one of the leading players in mobile digital media VAS market. The Company has developed an extensive client portfolio, including the major mobile service providers in Malaysia and Indonesia. The Company also delivered tailored digital content at an affordable price according to the different spending patterns in different countries. Leveraging the reputation built on the collaboration with the market players in the industry, the Company not only accumulated a solid customer base, but is also well positioned to expand rapidly in the future.
Our platforms offer one of the most diverse and succinct digital video content in various interest areas, and which is competitively priced. Further, payment for subscriptions is kept efficient through the integration of our payment systems with that of the subscribers’ Telcos. We offered our digital video contents in 12 interest areas, comprising lifestyle, celebrities and models, music, comedy, entertainment, drama and movies, paranormal, sports, fashion and beauty, education and knowledge, automotive and technology and religion. Currently, our content is made available in 10 languages, namely, English, Bahasa Malaysia, Bahasa Indonesia, Mandarin, Cantonese, Hindi, Tamil, Japanese, Korean and Thai. We have a rich content portfolio, which is distinguished by its combination of licenced premium content, our inhouse produced content and user-generated-content (“UGC”). The availability of our digital video content in languages other than English for certain of our channels allows us to have a wider reach including the migrant community in Malaysia and Indonesia, especially given that our platforms offer a variety of digital video content for the subscription of one channel.
We have a dedicated team that manages our digital content curation, that constantly follows social trends and keeps abreast of the latest events, lifestyles and fashion trends, and other market trends to ensure that we procure a variety of interesting and relevant digital content for subscribers.
Competitively priced digital video content which is diverse and engaging, and provided through a convenient payment system
Robust and scalable integrated technology platforms
We possess robust and scalable content platforms, which is compatible with a wide range of mobile devices that allows subscribers to access our digital content quickly and conveniently without requiring an application to be downloaded and installed onto their mobile devices. We have developed our technology and platforms to ensure seamless content and service delivery and an optimal subscriber experience. Our platforms are designed to enable streaming speed and video quality compatible with the subscribers’ mobile devices. Our videos are encoded in a format which allows us to utilise the video players already installed in the subscriber’s phones. Our content management system also enables us to quickly organise, schedule, edit and deliver our vast quantity of media content. This has allowed us to engage subscribers quickly and has allowed subscribers to easily experience and subscribe to our channels. Furthermore, we are able to reach out to subscribers whose phones do not support Android and iOS applications. This is a useful feature in Southeast Asian and South Asian countries where smartphone penetration is still increasing.
Our strength in content management and delivery systems is evidenced by licensees who have chosen to license our base platform for the enhancement of the digitisation efforts of their business activities. Further, with our in-house software development capabilities, our platforms are scalable to cater for various business models or revenue models in the digital content industry such as the over-the-top (“OTT”) content service business by simply integrating with external payment gateways. For example, Minime and Jukenow are OTT-enabled platforms, which can be connected to any payment gateway providers and accessed by any user connected with the internet. This would enable our platforms to receive payment of subscription fees for our digital content directly from subscribers. We have not commenced provision of OTT content services using non-Telco payment gateways.
Our senior management possesses strong business planning and execution ability. Our founder and core management team have extensive knowledge and experience in the internet and mobile digital content VAS industry, especially in the digital community and business environment and processes, in Malaysia and Indonesia.
Our founder and executive Director, Mr. Saw, has more than 15 years of start-up, operational experience of telecommunications, web, internet and mobile entertainment, and graduated from Charles Sturt University, Australia in 2003 with a degree in Information Technology. Our executive Director and chief operating officer, Ms. Ling, has more than 15 years of experience in mobile content, interactive media, telecommunication related industries and product management, and graduated from Flinders University, Australia in 2002 with a double major degree in Science and Business. Both our Head of product management, Ms. Tham Siew Chen, and Head of our technical development department, Mr. Tan Kee Chiong, have 18 years and 13 years of experience developing mobile platforms, content management systems and billing gateways, respectively. Our senior management team possesses extensive experience in the media and technology sectors and has demonstrated strong execution capabilities and a proven track record of success.
We believe that the extensive experience and strength of our management team will give us an advantage in pursuing business opportunities in the Southeast Asian and South Asian regions, including Cambodia, Thailand, Myanmar and Bangladesh where the target subscriber base and profile is similar to that in Malaysia and Indonesia, and allow us to further execute our business strategies and to achieve continuing success.
Experienced management team with extensive industry experience and proven business planning and execution capabilities