Toronto-based JumpTV Inc., which streams television channels from around the world over the Internet, is considering selling part of its business and cutting costs as it shifts its focus toward sports and Latin American content.
Hoping to increase traffic on its Internet TV service, it said it will narrow its approach to online broadcasting by pursuing those two audiences.
JumpTV, which carries dozens of channels from around the world including from Asia and Europe, has also hired investment bank Oppenheimer & Co. to advise on the potential sale of its content delivery network, the technology used to stream its content.
The company received unsolicited interest from an unnamed potential buyer for the technology, which is used to serve up the channels to viewers. JumpTV said in a statement that the delivery network is “a significant cost centre,” and a sale would help reduce operating expenses.
JumpTV chief executive officer Jordan Banks, former head of eBay Canada who took over from JumpTV founder Scott Paterson in November, outlined a new strategy yesterday that includes culling non-performing channels and consolidating offices. Some savings will come through partnering with other Web media companies on non-Latin American channels. This could help reduce the costs associated with acquiring and streaming such content, the company said.
“JumpTV's new strategic focus will allow us to meet the demand from a massively underserved market of tens of millions of Latin Americans worldwide,” Mr. Banks said.
JumpTV revamped itself a few years ago as a subscription service aimed at people looking to watch international TV over the Web. It moved to a mostly advertising-supported model last year, but still sells some content by subscription.
The focus on sports and Latin American channels comes after JumpTV last year bought XOS, a U.S.-based online broadcaster of live sports, including U.S. college football and Caribbean baseball. JumpTV said it has $51-million (U.S.) cash on hand, enough to pursue the new strategy.
