Cellcast News

Cellcast launches participation TV in South America

24th October 2005

Cellcast plc (AIM: CLTV), a global interactive digital broadcaster, has launched its South American roll-out with a showcase interactive TV game show on Telefe, Argentina’s largest terrestrial broadcaster. This is the first step in the Company’s regional strategy which includes the Hispanic markets of Central America and the United States.

‘Sonambulos’ (Insomnia) is a live entertainment show with which home viewers directly participate by sending SMS text messages from their mobile phones, or by calling an interactive voice-response (IVR) service. Broadcast six days a week, the three-hour late night show is a lively mix of sketches, celebrity guests, quizzes, games and valuable prizes based on a proprietary format developed by Cellcast. Since its launch last month, over two million viewer responses have been generated, demonstrating the strength of the programme format.

With an audience of over 30 million, Telefe is the largest Hispanic broadcaster in South America, while Argentina is a major hub for TV production and one of the fastest growing markets for digital entertainment in the region.

Cellcast’s entry into the Latin America market follows its success in establishing eight participation TV channels in the UK market on the Sky Digital platform, and generating millions of dollars in incremental revenue for its international broadcast partners which include Canal + in France; Future TV, LBC, MBC, Dubai Television and Rotana in the Middle East; and Zee TV and Star TV in India.

Andrew Wilson, CEO of Cellcast, said: “With a common language, similar time zones and shared culture, the Hispanic market offers a significant opportunity for Cellcast. Our extensive portfolio of formats and services, which covers everything from game shows to talk shows to dating formats, is attracting strong interest from broadcasters across the region. The convergence of television and mobile entertainment is generating significant new revenue opportunities in today’s challenging multichannel television environment.”

Carlos Banfi, chief executive of Cellcast’s Argentina operations, said: “‘Sonambulos’ is a ratings and direct response success story, and has immediately become the number one rated show nationally in its timeslot. The winning combination of entertainment and compelling viewer participation has generated over two million viewer responses since the launch last month. The success of ‘Somnabulos’ has provided Cellcast with a powerful proof of concept and a regional showcase for its technology and formats.”

Latin America is emerging as one of the world's largest integrated markets for mobile content, according to Tierra Innovation Inc., the mobile telecoms consultancy specialising in the Americas. Worth up to US$1.3 billion by 2007, and with subscribers growing at 15-20% annually in the key markets in the region, Latin America represents a high value opportunity for mobile entertainment and participation TV. A new generation of young Latin American consumers are embracing the new entertainment possibilities offered by mobile technologies, using the latest handsets, networks, and applications to turn passive TV viewing into an active experience, providing broadcasters with new 24/7 revenue opportunities.

Over the next six months, Cellcast will launch further participation TV shows and other interactive services in Argentina, and will accelerate its roll-out in several other Latin American countries, capitalising on the strong response by broadcasters to its innovative and proven new business model.

Commenting on the international demand for participation TV programming, Andrew Wilson said: “Insomnia is one of several Cellcast interactive formats that attracted strong interest at MIPCOM 2005, the international television market held last week in Cannes, where the new TV opportunities offered by mobile and broadband took centre stage.”

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Notes to Editors:

Cellcast plc 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, Hong Kong and Buenos Aires, Cellcast’s applications and programming are distributed on the Sky Digital platform in the UK and broadcast partners include Canal+ in France; Future TV, LBC, MBC, Dubai Television and Rotana in the Middle East; and Zee TV and Star TV in India.

Cellcast plc joined AIM on 21 September 2005.