MC3 Global

The UK has taken a significant lead in the business of television gaming with over 20 UK television channels broadcasting some form of interactive television gambling.  This development has been driven by the implementation of interactive television ‘red button’ technologies, recent changes in UK gaming taxes, and broadcasters seeking to obtain additional revenue streams to the traditional subscription, advertising and license fees. The size of this business is significant. In August 2005 Informitv.com stated that: "SkyBet produced £261 million in revenue over the year, a 37% increase on the previous year. Apart from subscription charges, revenue from betting is now second only to that from advertising [to Sky]." The success of this sector is behind the current healthy valuation of Yoomedia and in its purchase of DITG in December 2004.

Jennifer Allsop, co-founder MC3 Global

Despite the large number of channels in the UK and similar pressures on broadcasters outside of the UK, no similar channels have evolved in other regions such as the Middle East and Russia.  This is more surprising considering that the UK offers high levels of alternative gaming (eg betting shops, fruit machines etc) and high broadband penetration allowing internet gaming, competitive factors that do not exist to the same extent in other regions.  The two main reasons why UK companies have not explored the opportunities in these regions are:

• UK Channels are fully integrated programmes which require expensive re-development to be adapted to other markets; and
• UK Channels are reliant on ‘red button’ technology, a technology that does not exist in these developing regions.

As such there remains a vast untapped opportunity for television gaming outside the UK for the first company able to take advantage of it.

MC3 Global has announced the launch of a global 24 hour Fixed Odds Betting TV Gaming service.
The participation channel, which will broadcast from London, will reach across Eastern Europe, the former Soviet Union, Africa, the Middle East, Asia and much of Australasia, addressing pan-regional demand for gaming television products.

It is based on exclusive and highly realistic computer-generated Virtual Horseracing games broadcast 24 hours a day and supplemented by compelling keno games (lotto style numbers games). The channel has been designed to be highly entertaining, and is packaged in an aspirational, upmarket brand, attracting a broad demographic across multiple regions.
The formatted channel services operate from UK facilities & offices, and will be available internationally as:

- A global, multi-lingual channel
- Regionalised services, enhanced with local-language programming

Available via satellite, broadband internet or via local cable, DTH and terrestrial re-distribution, viewers will be able to either play for fun or bet cash via personal accounts using their fixed-line telephone, mobile or over the web rather than the more complex red-button technologies.

The channel will launch its global service in Q2 2006 with local launches to follow throughout the course of 2006/2007.

The strength of MC3’s solution is demonstrated by the fact that MC3 has reached an exclusive partnership deal with Showtime Arabia to provide a version of the MC3 channel free of charge to all viewers with access to NileSat services (approx 5,000,000 homes in 2005).

MC3 has a strong management team which is very experienced in this sector.  Co-founders Vlad Lodzinski and Jennifer Allsop spent several years at DITG helping to develop the interactive gaming market in the UK.  Vlad also worked at MTV as it commenced its roll out across Europe, and therefore has the skills required to ensure a successful rollout of a modular TV channel.

In order to complete its proposition and achieve its target launch date, MC3 requires further investment and Ariadne Capital has been engaged to advise the company.

For more information please contact Paul Flanagan at Ariadne Capital.

Paul@ariadnecapital.com