Australian Stock exchange-listed Hyro said the new division would work closely with clients to both source and create programming and “branded concepts” that are produced for a full range of digital media and device platforms.
The creation of the division signalled a much bigger focus on content sourcing and distribution for the company. It said the Heavy deal would be the first of a series of deals to source niche content – with niche target audiences – that was not currently available in Australia or New Zeland.
The deal with Heavy is the company’s first exclusive digital services content licensing arrangement.
Under the terms of the agreement, Hyro and Heavy will drive sales from the licensing of Heavy digital content through all media platforms including TV, online, mobile and gaming devices; PSP (PlayStation Portable), and iPod.
Heavy is a specialist producer of entertainment content specifically designed for digital channels and targeted to specific market demographics. It’s most prolific customer base are 18 – 34 year old males.
In the US, Heavy has successfully grown its online audience to generate 16.5 million unique online visitors per month that stay on the site, viewing for an average of 30 minutes.
Hyro’s Content Services division is headed by Chris Flintoft and comprises a team of new media and TV experts, with a broad experience in Australian broadcasters and telecommunications.
“Hyro Content Services will focus on a highly interactive, tactile and cross-platform approach involving original characters, storyline and video targeted at ‘web 2.0 style’ channels such as broadband, 3G and portable media devices,” Mr Flintoft said.
”We will be creating and sourcing digital content that is different, cutting edge and that keeps pace with the constantly evolving media world so that our clients can reach their target audiences in new and innovative ways.”
Hyro chief executive Joe Calavassy said that 18 months ago the company’s broadcast and mobile business was still in it embryonic, incubation state “requiring us to invest some of our margin in building capability and capacity.”
"Now, the Wireless and Broadcast business is a fully commercial part of Hyro, contributing more than 10 per cent of revenue and positive net earnings.
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