Streamplay Studios completes major acquisition, picks up music and video streaming verticals
Streamplay Studio has completed a major acquisition which will boost its capabilities, particularly into music and video streaming.
Esports gaming and telco service provider Streamplay Studio (ASX:SP8) has announced it has completed the acquisition of the telco value-added service (VAS) business of Mobimedia.
Mobimedia generates Mobile Network Operator (MNO) partnership revenue in the Solomon Islands, Tonga, Papua New Guinea, and American Samoa through delivery of digital content.
SP8 is a service and platform provider of bespoke, end-to-end digital products specialising in mobile game streaming, music and video content across multiple regions around the globe.
Partnering with MNOs it aims to engage subscribers with valuable content, build engagement and focus on long-term sustainability across all products.
The service, operated by Streamplay brings subscribers into a new digital age allowing players to compete in real-time tournaments with the opportunity to win prizes and rewards.
The acquired Mobimedia VAS business includes several new product lines and revenue streams which are complementary to Streamplay’s existing gaming and streaming technology service offerings including:
The VAS business will be operated under a new wholly-owned Streamplay subsidiary, Streamplay Studio Pacific Pty Ltd, which will be headed by Todd Emanuelli, an experienced telco emerging markets executive.
As part of the transaction Emanuelli and his team of management and staff will join Streamplay and add significant experience in expanding and servicing MNO partnerships.
Streamplay chair Bert Mondello said he welcomes Emanuelli as the CEO of its new Pacific subsidiary and his team to the group.
“Completion of the transaction adds new product streams and profitable revenues to our business,” he said.
He said crucially, Streamplay’s footprint is extended into new markets.
“The synergy of product offerings and ability to cross sell products into new markets promises strong growth for the group.”
Emanuelli said he’s excited and pleased for his team and their products and what will be possible with the significantly expanded resources, tech stack and corporate support of Streamplay.
“I am confident of the prospects of the combined product offerings and that we will be able to demonstrate value to our MNO partners and expand our services with them,” he said.
“My team and I have substantial experience in emerging markets and I know we will be able to assist Streamplay with making the most out of its existing partnerships as well as forging new ones.”
Streamplay now has a strong product suite in the industry covering gaming, video, and music verticals.
The company has a strong partnership with MTN South Africa as an esports services partner supplying a reported 1.3 million users with gaming experiences both in MTN Arena (competitive social gaming platform) and MTN Arena 5G (game streaming platform).
MTN Arena 5G is the first South African developed game streaming platform and was launched in Q3 2022.
Game, video, and music streaming opportunities in Africa continue to rise where MTN currently services more than 285 million subscribers across its portfolio of 19 countries.
With the acquisition of Mobimedia, Streamplay’s strategy going forward is to penetrate the African market and use this region (in addition to others) as a key target for market expansion.
With this acquisition Streamplay takes the next step in expanding into different regions with an array of mobile services and a series of telecom partnerships including:
Streamplay and Mobimedia are also exploring partnerships and content offerings with several new MNOs and VAS providers in the Pacific and MENA region.
Streamplay has reported a subscriber base of 1.3 million users since the launch of its services in South Africa.
The Mobimedia acquisition adds ~300k active subscribers across new territories. An example of the potential of the new business is demonstrated in its newly formed partnerships in PNG – just one of their four jurisdictions.
In September 2022, the Mobimedia team launched a range of their services with a local MNO partner and in only a short period of time amassed over 70,000 subscribers averaging a daily recurring revenue of $2.5k and growing consistently month over month.
With the acquisition, new Streamplay assets include:
This article was developed in collaboration with Streamplay Studio, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.