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“This is a long-term, multi-year deal with rollovers,” said Patrick Rainsford, the chief executive of Emuse, which he founded in 1998. “Historically, the model for this type of thing was licensing or acquisition of technology but this is a revenue-sharing deal based on the volume of shows produced and the success of those shows.”
Revenues from interactive content, which allows viewers to join in by “pressing the red button”, sending a text message or making a phone call, will be split between Emuse, ITV, the telecoms operator and in some cases, the platform operator, such as Sky.
Emuse and ITV have three new quiz programmes currently in development and Emuse staff members will now be seconded to ITV to work out where else interactivity can be added to programming.
“We will be involved from the embryonic stage right from creative through to financials,” said Rainsford. “We are looking at all genres from drama onwards. We want to get the volume up across the schedules and make this a 24/7 income.”
Emuse had previously had one-off deals with ITV to produce interactive content for I’m a Celebrity . . . Get Me Out Of Here and the Great British series of quizzes, for which Emuse and ITV were mutually nominated for a Bafta award.
Interactive television has grown in prominence in the UK market and is being touted by big-spending advertisers as a potential growth area.
However, only around a third of all UK households have access to interactive television services. Nevertheless, it has been estimated that about 600 advertising campaigns have been conducted through interactive services in recent years.
The serial entrepreneur Rainsford, who also co-founded the laser technology specialist firm Xsil, is promoting similar revenue-sharing arrangements for Emuse across Europe and in North America, Australia and New Zealand. He says further deals are in the pipeline, including one to be announced next week and another with an American company for interactive advertising. The latter will be the company’s biggest-yet deal, surpassing that made with ITV.
Although interactive television is a growing phenomenon in the UK and Ireland, it is still in its infancy in America. One of the main drivers of the service in America is cable provider DirecTV, which broadcasts Celtic Vision, the Irish-American channel acquired last year by Andy Ruane, the Dublin-based television producer who created the the Lyrics Board.
New Emuse offices are set to open shortly in Denver and Sydney, adding to those in Dublin, London, Tokyo and Los Angeles. Rainsford acknowledges that this expansion should be conducive to an initial public offering.
“Flotation is always something you build for and for that you need a consistent business model with an international dimension,” Rainsford said. “It is too early for me to float now but I am designing everything I do to that end.”
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