PCCW Media has launched a new holding company to develop its OTT content business that brings in Hony Capital, Foxconn Ventures and Temasek as investors.
The new company, PCCW International OTT (Cayman Islands) Holdings Limited (PCCW OTT) will be controlled by PCCW Media, which will be the largest shareholder. Hony, Foxconn and Temasek will invest a total of $110 million in the new company for a combined 18% stake.
PCCW Media said the strategic investment will help PCCW OTT increase its penetration within the existing markets where it has made significant inroads as well as to expand its footprint in other high-growth markets.
The other stated objective is to strengthen PCCW OTT’s ability to enhance its core value proposition of relevant content (including original productions), as well as deploy the latest technologies and leverage its patents in video streaming and encoding.
PCCW OTT currently offers OTT content services in 24 markets globally, including its video streaming services Viu and Vuclip, and its music streaming service Moov.
Janice Lee, managing director of PCCW Media Group, said that bringing in Hony, Foxconn and Temasek as strategic shareholders will support the company’s current plans and strengthen its position in the market with the introduction of more locally relevant and original content, and technology to support innovative product development.
Launched in October 2015, Viu has over 12 million monthly active users across 15 markets – Hong Kong, Singapore, Malaysia, India, Indonesia, the Philippines, Thailand and the Middle East countries of Bahrain, Egypt, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and the UAE – as of June 2017. The service operates on a dual-model of an ad-supported tier of service and a premium subscription tier of service with more features.
Vuclip – which PCCW purchased in May 2015 – provides web-based and short-form content video services in 19 markets including India, Southeast Asia, Middle East, Africa and other emerging markets. The Moov multi-platform digital streaming music service made its first foray overseas last year when it launched in Vietnam.