Investment Opportunity

QYOU Media: Tapping Indian Entertainment Sector Growth

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QYOU Media Inc. | Listed on: TSXV:QYOU.VN | OTC:QYOUF

QYOU Media Inc. (TSX.V: QYOU) (OTCQB: QYOUF) is a small-cap company harnessing the power of short-form video content and capturing the attention of an attentive and youthful Indian audience. 

The business operates with social media stars and online content creators in India and the United States, with an emphasis on the coolest and most popular influencers. It’s a strategy that has so far led QYOU Media to achieve record revenues as the business rapidly expands.

QYOU Media Phone on a Selfy Stick.

QYOU Media recently received a positive analyst rating from Atrium Research, with the initial price target of $0.15 due to strong financial momentum with nine consecutive quarters of year-over-year growth. Atrium Research attributes its expectations to “the significant growth to QYOU’s repeatable content strategy utilizing localization and “best of” content, in addition to industry tailwinds across social media in its key markets.” Atrium expects QYOU to achieve positive EBITDA by the fourth quarter of 2024, leveraging its strategic shift toward boosting profitability.

Analyst: Atrium Research

Report Date: October 27th, 2023 | View Atrium Research's Analyst Report

Target Price:
$0.15 (CA) / share
Return to Target:
 
%
Exchange / Symbol
TSX.V: QYOU
Market Capitalization
$ (CA)
Current price
$ (CA)
Current mid price
$ (CA)
52 Week high price
$ (CA)
52 Week low price
$ (CA)

About QYOU Media

QYOU Media works with some of the coolest and most popular creators, bringing rising stars to prominence.

In India, through its The Q India brand, QYOU has launched six channels across broadcast and video-on-demand platforms. Here, its influencer-led content reaches more than 125 million households. Meanwhile, its influencer marketing campaigns are spearheaded by Chtrbox, its in-house expert in connecting brands with just the right online content creators.

Also, in India, QYOU Media has edged into the gaming space. QYOU’s acquisition of Maxamtech gives it reach in the direct-to-consumer mobile gaming space. This is a means to help advertisers reach the rapidly expanding audience of Indian mobile gamers. QYOU has started to build out its Maxamtech and Q GamesMela gaming business by embracing real money gaming with exciting new announcements.

Meanwhile, in the United States, QYOU specializes in developing and overseeing influencer marketing campaigns for prominent film studios, game publishers, and brands. Here, QYOU Media produces content geared towards millennials and Gen Z, reaching over one billion global consumers each month.

The company’s management team has vast experience in the US entertainment business, with company founders being industry experts from Lionsgate, MTV, Disney, and Sony. This has helped bring some of these exciting campaigns to QYOU’s door.

Why Invest in QYOU

  • Young India: A Prospering Sector

    India’s youthful and rapidly expanding population (65% are under 35y/o), along with the influx of money and tech into the country, make it an ideal market for QYOU Media to focus on.

  • Rapid Growth

    QYOU boasts ten consecutive quarters of Y/Y revenue growth while ramping up audience exposure as it begins tightening its grip on the Indian market.

  • Multi-Faceted

    The company’s business is diverse, with influencers fostering a constant stream of high-quality content and social media marketing efforts contributing to perpetual growth.

  • Building a Brand

    The company is building a brand that is synonymous with cool for young Indian consumers.

  • The Right People

    QYOU is led by influential voices from both the North American and Indian entertainment sectors, with expert investors bringing additional expertise.

  • Real Money Gaming Transformation

    QYOU is positioning itself to revolutionize player engagement and commerce through in-game transactions.

Fast Growing Channels Reach Engaged Audience

QYOU Media users looking at phones in a circle.

In India, QYOU Media’s primary audience is young people, and here The Q India brand is reaching more than 125 million households with its influencer-led content. This brand works seamlessly with the company’s influencer marketing business, creating a unique operation that carries several interesting advantages.

With six channels in its portfolio and more on the way, The Q operates as a linear TV channel and VOD (Video on Demand) provider, offering popular digital content created by social media stars and prominent digital video creators.

The market opportunity for QYOU’s target demographic of young Indians is enormous, with around two-thirds of the nation’s 1.4 billion people under age 35. Additionally, smartphone, smart TV and social media usage are all on the rise.

Furthermore, there are no competitors currently following a business model similar to QYOU, nor any that provide the same level of exposure to the "Indian opportunity" while publicly listed on North American exchanges.

QYOU Media users looking at phones in a circle.

Explosive Growth in India's CTV Industry

Close up picture of keyboard and gaming controllers.

India is currently witnessing incredible growth in the Connected TV (CTV) industry, and the numbers are nothing short of amazing. Over the last eighteen months, CTV penetration in the country has tripled, making it one of the most dynamic markets in this sector.

By 2025, it's projected that Indian CTV will be present in a staggering 60 million households.

While advertising spend in the Indian CTV landscape is emerging, the global CTV industry is making headlines with a projected $25.9 billion in ad revenue for 2023, according to Group M. This impressive figure underscores the immense potential that India holds for advertisers looking to tap into this booming market.

As CTV adoption skyrockets, advertisers are on the verge of discovering the untapped goldmine that is India. It's not an exaggeration to say that India could soon become a cornerstone of this multi-billion-dollar industry.

And the benefits aren't limited to advertisers alone; consumers are in for a treat. With the proliferation of CTVs, viewers can expect more personalized, interactive, and on-demand entertainment options, elevating their TV-watching experience to new heights, particularly as Artificial Intelligence (AI) and Automatic Content Recognition (ACR) ramp up the capabilities of tailoring individual content in the space. 

This forward-looking approach to the Indian market is something OTC stock QYOU Media recognized early on, establishing a significant foothold in the Indian entertainment space. It's clear that the growth of CTV in India is a game-changer, and those who act now are poised to reap the rewards, which is why QYOU is determined to remain ahead of the game.

Indian CTV adoption presents great opportunities for viewers and advertisers. The next phase of entertainment and advertising is here, and early adopters like QYOU stand to benefit.

Close up picture of keyboard and gaming controllers.

“We continue to build key channel partnerships that are establishing a dominant portfolio of Smart TV channels under the Q brand. As penetration and user engagement grows, advertisers in India will increasingly rely on CTV as a primary platform to reach consumers. We have seen this happen in other territories around the world as witnessed by the massive rise in ad revenue in CTV. India is steadily joining the party and we plan on having a significant seat at the table as audiences, advertisers and revenues grow.”

Curt Marvis, CEO and Co-Founder of QYOU Media

Repurposing a Treasure Trove of Content

The online influencers who star on QYOU Media’s range of channels have a wealth of pre-existing content. This can quickly and cheaply be curated into shows for The Q India’s broadcast and video-on-demand channels. In turn, these programs create clips for influencers to share on social media, thereby boosting their reach and personal fan base.

This is what QYOU calls the virtuous promotional cycle, where influencers promote their TV shows through their social channels, while their TV shows promote their social media presence.

Essentially, both sides are feeding each other a constant stream of quality content, as well as a stream of engaged viewers. This supercharges the appeal of influencers, giving them bigger audiences and making them more attractive and useful to major advertisers.

QYOU Media has just teamed up with a gaming BEHEMOTH!

QYOU USA was delighted to recently partner with Microsoft-owned Activision Blizzard Inc. to launch Call of Duty: Modern Warfare III (MW3) via an imaginative campaign titled ‘The Lobby’.

For the latest Call of Duty game launch, QYOU orchestrated a unique and innovative creator-driven campaign, casting a top social creator squad to drive engagement.

These popular stars brought their unique talents to the project and used the thrilling experience as an opportunity to build their own social profiles with Call of Duty-themed content. Through a series of relevant and unique updates, the creators updated their own social channels with engaging short-form video clips.

The collaboration between QYOU, its team of five social creators and Call of Duty resulted in a significant social media impact. The promotion generated over 10 posts that collectively amassed nearly 10 million views and 480,000 engagements.

This campaign also achieved an impressive 5.3% engagement rate (ER) on TikTok, doubling the platform's benchmark and indicating a highly successful social media drive.

Chtrbox Milestone

Chtrbox hit a record milestone in October 2023, with its largest revenue month since inception, booking total revenue of over 7 Crore or $1,150,000. This impressive revenue growth was driven by a combination of larger individual campaign budgets, overall business growth and enhanced social media engagement throughout the Diwali holiday period in India.

PQ Media projects that global spending on influencer marketing will hit the $34 billion mark in 2023, marking a 17% surge from the $29 billion recorded in 2022. Notably, India took second place in the growth rate for influencer marketing markets in 2022. PQ Media's forecasts rely on its specialized econometric methodology to predict industry expansion.

QYOU isn't just becoming successful at influencer marketing and broadcasting but is building a brand that is synonymous with the best and most popular social content for young Indians.

This effort has not gone unnoticed, with Chtrbox recently winning two Entrepreneur 2023 awards, including Best Influencer Marketing Agency and Best Brand Engagement Campaign. The brand engagement award was the result of a successful collaboration between National Geographic and IndiGo Airlines for the captivating #nofilterbyIndiGo campaign.

And, with major brands becoming increasingly aware of the need to use influencers to market their products, the success of this strategy could lead to more major ad sales for the business.

Because of this ambition, the small-cap stock is building a layered business model where each facet feeds into another. The company’s VOD platform, apps, channels, influencer marketing, and an accelerated push into gaming efforts, are being built to synergize and support one another.

That’s how QYOU Media stands out in this vibrant space.

Find out how QYOU Media are building an unforgettable brand with influencer power!

Access our ONLINE REPORT to learn all you need to know about this exciting US-listed business capitalizing on the Indian Entertainment Sector!

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