Sonorous Networks, a data streaming network services provider, has entered into a joint venture with Johannesburg-based production company Internet Video Advertising TV (IVA TV). In terms of the agreement, the companies will on-sell each other's products to existing and future clients.
Jeff Fletcher, Sonorous Networks MD, says while his company is extremely focused on preserving its core business, IVA TV brings to the table the sales and production skills that will deepen Sonorous' market penetration, and take its offerings to businesses outside of the corporate communications sector - its target market up until now.
The data streaming services provider has also concluded a business agreement with Dimension Data's video conferencing outfit Videre, and plans a FreePortal service, which will go live in the next quarter, which Fletcher says works on a system similar to that of MP3.com, and which is aimed at making niche market video content available via the Internet.
"[Clients] would log in using a username and password, then upload the streamed file to our network where it gets replicated across the network and indexed into a site where people can go and watch clips on various subjects. The service will be paid for by advertising segments which would precede the actual clip.
"We're working on doing this in conjunction with MSN.co.za, so it's probably going to be more on the entertainment side, which will generate more traffic than corporate communications presentations, for example."
The company is building up its client base at a steady rate. Datatec, Investec and Ixchange are existing clients. New clients include Gallo Records, BMG Africa, Primedia Holdings and a company that will provide live video from various game reserves around the country.
The biggest hurdle, Fletcher says, has been to educate Sonorous' customers as to how they can make money off the streaming services. "Most of the people see it as something they have to pay for and not gain any returns. And I think ultimately, everything on the Net has to be free for at least another two years."
"You have to be able to give the end-user the choice to choose what they want and not have to pay for it for now, and subsidise your streaming or broadcast component through advertising - much in the same way that we don't really pay for a radio licence, but radio broadcasters charge their advertisers money."
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