Local Internet content aggregator ELTA Technology Co (愛爾達科技) yesterday said it plans to launch its first mobile application next month to deliver Netflix-like services on mobile devices as part of its efforts to improve its market position.
Consumers are currently required to subscribe to Chunghwa Telecom Co’s (中華電信) multimedia-on-demand (MOD) cable services or the telecom company’s mobile application Hami to access digital content on smartphones or tablets.
ELTA, a 15-year-old firm, has about a 38 percent share of the nation’s over-the-top (OTT) market for Internet supplied content.
It reported NT$545.25 million (US$16.499 million) in revenue last year, up 18.56 percent from NT$459.91 million in 2013.
The company owns four channels and distributes 10 foreign channels, including BBC World News. It expects to make digital content available on more channels next year.
“We plan to deliver our OTT services on our own application in January to expand our presence,” ELTA president and chief executive officer Sally Chen (陳怡君) told investors ahead of the company’s debut on the over-the-counter Emerging Stock Market today at NT$45 per share.
ELTA is the first “new media” company in Taiwan to make an initial public offering on the local stock market.
New media companies deliver on-demand content via the Internet.
Chen said the company’s revenue would grow steadily next year.
She said the growth would come from royalty income from broadcasting the Olympic Games in Rio de Janeiro and from selling TV shows produced by the firm to overseas clients.
Income from advertising fees would also increase, she said.
When asked about potential competition from Netflix, Chen said she believes the US company’s entry into the Taiwanese market “will have a positive impact on the OTT market.”
Netflix plans to expand its services to Asian markets, including Taiwan, next year.
“Local consumers will get more familiar with OTT services and become willing to subscribe to the services.” she said. “Besides, most of the content we provide caters to local consumers’ taste and we are strong in the area of sports broadcasting.”
ELTA has rights to broadcast six Olympic events, which started with the Beijing Olympics in 2008, as well as a deal for two Asian Games.
In the first 11 months, the company’s revenue dropped 2.09 percent to NT$496.44 billion, compared with NT$507.03 million in the same period last year. About 84 percent of ELTA’s revenue comes from digital content, with advertising income making up 5 percent.
Net profit in the first 10 months totaled NT$23.64 million, with earnings per share of NT$1.31, company data showed.
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