Emerge shares shot up 30pc after it release news of a hookup with Viacom...Africa

eSports company Emerge Gaming (ASX: EM1) remains focused on growing distribution networks for its ArcadeX gaming platform.

And on its path to monetisation, the company has been making early headway in the African market.

Last September, EM1 shares got a boost after the company announced it had integrated its technology with an African telco network. It said the deal gave it access to 350 million new potential subscribers in Ghana, Kenya, Namibia, Nigeria, Zambia and Zimbabwe.

Today, it announced an agreement with the African division of Viacom — a global media conglomerate with revenues north of $US12 billion.

As with the telco announcement, markets reacted kindly to the latest Africa partnership, sending EM1 shares up more than 30 per cent when the stock came out of a trading halt.

From Nickelodeon to NickX

The deal forms part of Emerge’s efforts to build out the user-base of its ArcadeX platform — which it hopes will provide a one-stop streaming shop akin to a “Netflix of gaming”.

As a key part of the agreement, Emerge’s eSports product will be available on Viacom’s Nickelodeon network. The product will be called NickX and managed by Emerge Gaming.

“‘NickX’ will be freely accessible through the Nickelodeon website, Android and iOS apps, featuring unique mobile games content on all devices,” the company said.

EM1 will run interactive eSports tournaments on the platform integrated with Nickelodeon content. And it’s hoping the deal will be commercially lucrative “for both parties”.

“Monetisation will be through brand take-up, premium subscriptions, in-app subscriptions and advertising across the platform,” Emerge said.

However, while the company said its Viacom agreement is potentially significant, it said financial terms for the deal aren’t “determinable” at this time and future revenue streams couldn’t be guaranteed.

Stockhead has contacted a representative of EM1 for further comment on why the African market has been a key focus in the early-stage rollout of its ArcadeX platform.