Ambitious online TV broadcaster TV2U has announced its latest Brazilian partnerships in a bid to become the country’s answer to Netflix.

The company (ASX:TV2) told shareholders it had signed a letter of intent to acquire Slim Pack – a Brazilian digital content creator – as a replacement for premium content supplied by former partner CCS TV.

As well, it shared a memorandum of understanding with Wirelink to distribute its services in the North and North-East of the country.

TV2U has continued to update shareholders on Memoranda of Understanding and Letters of Intent with partners in Brazil and Indonesia since listing in 2016 — though cashflow has been slow to follow.

TV2U shares traded over the past six months.
TV2U shares traded over the past six months.

Its December quarterly reported $183,000 in customer receipts and $1.5 million in outgoings — leaving $320,000 in the bank.

That follows $43,000 in revenue dating back to the start of the 2016 financial year.

The shares were trading down 13 per cent at 1.3c on Friday — the lowest since peaks of 2.4c when the platform went live in Brazil last November.

But TV2U is confident this latest letter of intent to acquire the Brazilian content provider will be formalised after an estimated three months of due diligence.

“This acquisition will strengthen our position in Brazil as the first independent OTT [Over The Top] broadcaster and also gives TV2U a massive opportunity to extend premium content licence rights not only in LATAM [Latin America] but also globally,” chief executive Nick Fitzgerald said.

Over The Top or OTT refers to transmitting content over the Internet, bypassing traditional broadcasting systems such as cable and satellite.

Slim Pack will provide immediate access to its content for streaming in Brazil.

The new partner will replace content from former supplier CCS TV — a change TV2U put down to regulatory issues for cable operators in Brazil.

As a result, Android customers have had the service suspended while the operators change – expected to take 10 days.

TV2U estimates its term sheet with Wirelink will be complete later this week.

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