Management believe that the size of the markets, long term revenue potential and long trailing revenue models justify the FY19 investment in getting the technology and other operational assets in place at an industrial, internet scale.
Linius’ core technology enabling it to virtualise video (Video Virtualization Engine or VVE) now has patents granted in all key regions around the world.
Importantly, the company has begun to generate commercial traction in FY2019.
Direct sales and commercial opportunities
During FY19, Linius’ hyper-personalization application of VVE successfully went through many proof-of-concept trials.
Examples include Warner Bros, in the media and entertainment vertical, successfully comparing the delivery of long-form, high-value movies virtually with traditional methods; and Oklahoma State University, in the education sector.
The first commercial deal was closed in the news vertical with Swedish news provider Newstag.
Subsequent to the close of the year, the company also announced its first commercial deal in the sports vertical, with Australian company SportsHero (ASX:SHO).
Both SportsHero and Newstag are revenue-generating in FY20. In management’s opinion the company is hitting its commercial stride, with a full pipeline of advanced opportunities.
These initial deals and proof of concepts are important to Linius’ success because of their replicability.
Each solution was built by a third-party system integrator and can be quickly deployed for future clients, reducing friction in adopting Linius’ VVE technology.