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Cellcast launches Sumo.TV on Sky

28 November 2006

World’s first service to integrate user-generated content on TV,

the Internet and mobile services

Cellcast plc (AIM:CLTV), the global interactive digital broadcaster, today announces the launch of Sumo.TV on Sky Channel 146 in the United Kingdom on 28 November 2006 and the immediate availability of the channel and the integrated Internet and mobile platform for worldwide syndication

Sumo.TV is the world’s first user-generated content (“UGC”) television channel with an integrated website (www.sumo.tv) and mobile services. Uniquely, it offers anyone uploading content to the website the chance to have their material broadcast on national television. And every time that content is shown on TV, downloaded from the website by another user, or streamed on mobile services, he or she will receive a percentage of the revenues that may be generated.

Furthermore, Sumo.TV offers viewers the opportunity not only to create content, but also to participate in the shaping of live TV shows through the integration of texting, webcams, video messaging, and 3G streaming.

Some 32% of the UK population watch video online or expect to do so in the coming year, according to a recent ICM survey for the BBC, and 43% of those currently watching video on the Internet or a mobile device are watching less normal TV. Online and mobile video is most popular among the young, with 28% of 16-24 year-olds watching more than once a week, but as many as 10% of 25-44 year-olds are Internet video regulars.

Andrew Wilson, CEO of Cellcast plc, said of the new channel: “Sumo TV puts the viewer in the driving seat. It is the first service to integrate user-generated online content into a dedicated television channel, and provides users with new ways of finding that ‘15 minutes’ of fame, new ways of making money, and new ways of expressing themselves and making friends. It’s an incredibly exciting departure for us.”  

At launch, Sumo.TV will feature a 24-hour mix of UGC, short form and classic cult content. Every afternoon, the live interactive show 'Sumo Selection' will feature 3 hours of the best UGC in the world, as well as submissions by the Sumo.TV community.

The amount of UGC content will increase steadily as the channel matures, and over the next few months Cellcast plans to roll out proprietary interactive UGC formats which not only showcase the best UGC, but also by their nature encourage viewers to submit content. These will include talk shows, game shows, talent shows, reviews, and citizen journalism.

Mahesh Ramachandra , VP International & Product Development at Cellcast, said: “The recent news surrounding YouTube and MySpace has heightened general awareness of the potential of UGC in the current media spectrum. The launch of Sumo.TV marks an extremely exciting point in the evolution of UGC as it enables broadcasters for the first time to embrace this new source of dynamic content.”

Sumo.TV is not dependent on advertising revenues, as the majority of UGC sites such as YouTube and MySpace are. It has been developed with Cellcast’s considerable international experience of monetising content through the application of micro-billing solutions. Diversified revenue streams include a share of the call revenue from mobile content and premium services, participation in the monetisation of long-tail content, in addition to the income from advertising and sponsorship generated through the television channel and the website.

Following the successful introduction of Sumo.TV at MIPCOM in October, Cellcast is in negotiation with a number of broadcasters keen to take advantage of Sumo.TV’s turnkey content and technical solutions that can enable them to quickly establish a true multi-platform UGC presence.

Global television audiences are increasingly switching their viewing time and loyalties to online and social networking sites, and the Web 2.0 is emerging as a legitimate medium for distributing professional and amateur video alike. According to ComScore, over 63% of all US internet users in August 2006 streamed video online, equating to 110 million people. And with the increasing popularity of sophisticated mobile phones, Informa forecasts that globally, operator revenue from video sharing services will rise to more than US$13 billion by 2011 from US$3.45 billion this year.

Mahesh Ramachandra added: “Most broadcasters are evaluating both the threat and opportunity that UGC presents to their current business model. Sumo.TV provides a turnkey solution that can be rapidly implemented to enable broadcasters to move quickly to stake a position in this fast-evolving market.”

Cellcast has a track record of pioneering innovative new multi-platform (TV, mobile, web) formats and has been among the leaders in the development of interactive and participation media, and has worked with broadcasters of all sizes across the globe, including Star TV in India, Telefe in Argentina, Future TV in the Middle East, TV3 in Malaysia and STB in Ukraine.

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Cellcast plc

Cellcast plc (AIM:CLTV) is a leading international provider of participation television applications and interactive mobile content in the fast-growing multi-platform digital entertainment sector. Headquartered in London, with associated operations in Paris, Beirut, Mumbai, Miami, Hong Kong and Buenos Aires, Cellcast’s applications and programming are distributed on the Sky Digital and Freeview platforms in the UK and broadcast partners include Canal+ in France; STB in Ukraine; Future TV, Dubai Television and Rotana TV in the Middle East; Zee TV in India; TVS-3 in China; TV3 in Malaysia; and Canal America in Argentina.

Cellcast’s revenues streams are independent of both advertising and subscription fees. With a network of revenue sharing agreements with telecommunications carriers and aggregators across five continents, Cellcast receives a share of the call revenue every time a consumer uses a mobile or fixed-line phone to participate in its interactive entertainment, revenue which is retained or shared with its broadcast partners. Cellcast’s programme formats and proprietary Interactive Platform (CIP) also facilitate delivery of content to mobile phones, the internet and broadband-delivered IPTV. This enables viewers to continue participating in a programme away from the TV, generating 24/7 revenue opportunities.

Cellcast plc joined the AIM market of the London Stock Exchange on 21 September 2005.