London - Motive Television PLC (AIM: MTV.LN) ("Motive"), the London-based provider of technology-based solutions that create new income for the television industry, announces that its 100% owned subsidiary, Motive Television Services Limited ("Motive Services") has signed two new contracts with KREA IERIK HIZMETLERI VE PRODKSIYON ANONIM SIRKETI ("Digiturk"), the largest satellite pay television platform in Turkey. The contracts both have an initial term of one year and renew automatically unless terminated/cancelled.
Under the new licensing agreement, Digiturk may use the Head-end and Software Development Kit (SDK) software for the term of the agreement and create derivative works and new features that interface with the Motive software solely for its own use in Turkey. Digiturk is prohibited under the agreement from sublicensing the Motive software to any third parties. The licensing agreement calls for fixed payments to Motive upon signing the agreement and upon initial access by Digiturk of the source code.
In addition, Motive Services and Digiturk have signed an annual renewable Service Level Agreement (SLA) covering support and maintenance services provided by Motive Services to Digiturk. Digiturk will pay Motive Services a fixed annual fee plus additional optional costs for services not covered by the agreement. The performance of the Company continues to be in line with market expectation.
The new agreements are the first direct agreements between Motive and Digiturk and do not affect the five-year software licence agreement between Motive Services and Sagemcom Broadband SAS that was announced on 5 November 2012. Under that contract, Motive will continue to receive a licence fee for each set-top box manufactured by Sagemcom for Digiturk use in Turkey.
Cem Taylan Ozsipahi, Head of STB and Conditional Access for Digiturk commented, "We are pleased with the progress of Digiturk's non-linear services platform and look forward to continued co-operation with Motive Television to develop added features and capabilities."
Leonard M Fertig, Chief Executive Officer of Motive, commented, "The new contracts with Digiturk build on a deepening relationship with an excellent customer for Motive. As Digiturk is now rolling out the deployment of services that use Motive's software solutions and plans to introduce new features with Motive's support to a selected installed base as well as new set-top box projects, we see this as a major opportunity. We are excited and pleased to continue working closely with Digiturk to maximize the success of their new platform."