Die-hard Web development and content supplier Software Communication Group (Sofcom) will distribute Online Trading Systems (OTS) shares and market information to content customers and subscribers, following an agreement signed yesterday.
Sofcom, one of the last remaining Web developers and online advertising consultants, will terminate its existing agreements with financial data and content suppliers to exclusively distribute OTS data content feeds.
OTS and Sofcom will share revenues from financial content provision derived as a result of the agreement.
Albert Dadon, OTS executive chairman, says the competition to provide financial content is high due to the vast demand from Web portals. "This is a new revenue stream for OTS and demonstrates the untapped value of our present infrastructure and capacity to supply its services to wholesale financial markets," he says.
"Showcasing the OTS financial data within the Sofcom portal and including it as part of Sofcom's content offering for third-party Web sites will provide greater flexibility and offer richer and deeper financial content for our customers," said Cary Stynes, Sofcom CEO. "We believe that the data distribution will utilise OTS' proprietary Internet broadcasting technology (IBT) which facilitates the mass simultaneous distribution of data at low cost." OTS was granted a provisional patent for IBT in November last year.
Meanwhile, Sofcom has earned a reputation as a tech-wreck gleaner after picking through the remaining assets of fallen Internet groups Zivo and Real Media Australia. Earlier this week, it took over the advertising representation services for all 130 former DoubleClick Media clients after the company folded.
OTS shares closed at 45 cents yesterday, a sluggish recovery from their all-time low earlier this month. Sofcom's shares are also climbing, closing yesterday at 11 cents. The company scaled back its earnings in February from $4.8 million, for the 12 months to June 30, 2001, to $2.9 million.