Vividas' CEO said on Monday a deal with cable channel Fox to broadcast English football matches in the United States will help it win other contracts within News Corp and with others.
Vividas, a UK-based video streaming technology company, announced on Monday a deal using its technology to show Barclays Premier League matches on the website of Fox's Soccer Channel (www.foxsoccer.com), part of Fox Sports' cable offering.
Vivadas shares rose 6.4 percent to close at 66.5 pence. The arrival of England midfielder David Beckham in the United States and rising interest in English football in that country played a part in securing Vividas' biggest deal to date, Chief Executive Paul Neville told Reuters.
The pay-per-view deal is financially significant but the opportunity to show matches and video on the websites of other Fox Sports channels and the News Corp's Fox News Channel could be more lucrative. "The long-term goal is if this is successful there's no reason we can't move into other parts of the huge Fox Sports network and News Corp as well," Neville said.
The value of the three-year deal was not disclosed, but Neville expects it to reach seven figures. The exact amount depends on how many ex-patriates and Americans are prepared to pay to watch football matches on their computers.
"They (Fox) realise English football is a huge brand they can build on," said Neville. "Beckham is huge, people know about the Premiership now particularly with him getting called back into the England team and they think it's going to fly." Loss-making Vividas needs more such deals to turn a profit, and the Fox deal gives it a big credibility-enhancing boost, Neville said.
It hopes to add to the value of the contract by getting rights to broadcast FA Cup and UEFA Cup matches for Fox, as well as United States college soccer games. "This deal was an important part of our pipeline of expected revenue but it's a brilliant reference and a real endorsement of their technology," said analyst Kevin Ashton at house broker Landsbanki, which recently took over Bridgewell Securities.
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