QYOU Media (TSXV: QYOU) – It’s MUCH Bigger Than You Think!

More eyeballs = more revenue is a simplistic but to the point formula of QYOU Media’s business model. If you accept the premise that the market values a company on not only what has been achieved, but also the “future”, then it’s time to pay attention. The company’s numbers are becoming quite “eye-catching”, and that is a simple fact.  

QYOU’s “reach” has blossomed in one short year as its digital media content targeted at Millenials and Gen Z audiences is now shown in 35 countries on six continents.  

With these thoughts in mind, review how CEO Curt Marvis has set the stage for 2018 and beyond:

  • QYOU’s global footprint expanded very dramatically in 2017 as it announced 13 new content partnerships in 2017, taking in the geographies of central and eastern Europe, the Caribbean, India, North America and Africa, reaching a potential audience in excess of 100 million.
  • The big theme of 2017 was ‘localisation’, with QYOU adapting its core product mix to create VOD (Video On Demand) and linear channel properties for specific markets – including the launches of QYOU Poland and QYOU India, and featuring an expanded lineup of local talent/content.
  • India is a major highlight with a second deal struck with TATA Sky to bring QYOU India to cable audiences as well as mobile subscribers. This opened the door to several more opportunities across South and South East Asia, including the very recently announced iflix distribution deal, which captures the territories of Malaysia, Philippines and Indonesia.
  • The above adds a potential audience reach of 1 Billion people, with the ramp up starting now.
  • Across 2017, QYOU also demonstrated its expertise in creating genre-specific programming in the burgeoning eSports (competitive gaming) arena. The deal struck with SuperChannel in Canada for daily sports roundup show – Heads Up Daily (HUD) – is a leverage point for engaging with a range of other traditional TV and new generation OTT services (streaming content provider sells media directly to consumers) interested in adding eSports to their content lineups.
  • For 2018, investors should be looking for further developments in this area as discussions are ongoing across Europe, North America and Asia for localisation of this kind of programming.
  • In addition to announcing new distribution deals, QYOU Media strengthened its position as a thought leader in the content marketplace for millennial television. CEO Curt Marvis was invited to speak at Broadcast India, and has been published in a range of industry publications including:
  • Other thought leaders in the company have also been published on the themes of localisation, influencer marketing, and eSports, helping to broaden QYOU’s awareness across a range of market segments.
  • Overall, QYOU Media’s press mentions grew by 33% in calendar year 2017 compared to the previous year, reflecting the company’s expanding global activities and growing interest from TV providers to meet the needs of Millennial and Digital Native viewers with a content mix that best represents the online world, in which they are already so immersed.

QYOU has close to 67 million shares issued with a market cap of approximately $25 million.

Clarus Securities Technology Analyst Joe MacKay forecasts 2018 revenues of $15.4 million and has a target price of $1.10. 

The stock is trading in the $0.35 to $0.40 range as of this writing.