Madison Technologies, Inc. Completes Purchase of Los Angeles TV Stations KNLA & KNET

Rhea-AI Summary

Madison Technologies, Inc. (OTCQB:MDEX) has acquired two Class A television broadcast stations, KNLA-CD and KNET-CD, in Los Angeles for $10 million. This strategic purchase aims to enhance Sovryn.TV's free-to-consumer OTA video broadcast platform, creating immediate cash flow benefits. The company plans to expand its portfolio significantly, targeting up to 100 stations nationwide within 12-14 months. The OTA market is expected to grow, with consumers increasingly favoring alternatives to cable. Innovations like NextGen TV technology will further enhance viewer experience and engagement.

Positive

• Acquisition of KNLA-CD and KNET-CD is immediately accretive to cash flow.
• Plans to expand station portfolio to 100 nationwide targeting top DMA's in the next 12-14 months.
• OTA market shows significant growth potential with doubled OTA households over the last decade.

Negative

• None.

The acquisition kicks off the development of Sovryn.tv's free-to-consumer OTA video broadcast platform

NEW YORK, NY / ACCESSWIRE / April 28, 2021 / Madison Technologies, Inc. d/b/a Sovryn.TV, (OTCQB:MDEX) today announced the purchase of Class A television broadcast stations in Los Angeles, the number 2 ranked DMA (Designated Market Area) in the nation. Sovryn's $10 million acquisition, filed in February with the FCC, was for two Class A broadcast licenses, KNLA-CD and KNET-CD in Los Angeles from NRJ TV III. The station combination, currently broadcasting over 15 different streams of content to the LA marketplace 24 hours per day/7 days per week, will be immediately accretive to Sovryn's cash flow:

• KNET-CD, using Display Channels 25.1-25.4
• KNLA-CD, using Display Channels 20.2-20.12,18.9 and 18.12.

This purchase is the first of a planned series of similar top DMA television broadcast station acquisitions by Sovryn with another 7 stations currently in the pipeline and a plan to further expand the portfolio to 30 stations within the next 12-14 mos. Sovryn expects to ultimately grow the station base to 100 tv stations nationwide through additional acquisitions targeting the top 100 DMA's, covering 80% of the population of the U.S.

The result will be a broad, nationwide, OTA independent distribution platform to host various content providers and data transmissions of many sorts, creating not only a unique, independent platform but an alternative to the existing Cable, OTT, and Internet platforms for those seeking to expand viewership of their content.

"With little or no technology changes in more than a generation, the broadcast TV industry today is poised for dramatic change as new disruptive technology prepares to roll out allowing for OTA mobile viewing and other major advancements, "said Philip Falcone, Founder, and CEO of Sovryn.tv. "The OTA market represents an untapped and sizeable market opportunity, and our goal is to continue expanding our platform to capitalize on the changing media and viewer landscape and growing OTA viewership in the U.S.

Sovryn Holdings, Inc. and it's broadcasting unit Sovryn.tv merged earlier this year with publicly traded Madison Technologies, Inc (otc: MDEX)

Strong Tailwinds for OTA TV and Online Streaming

Consumers have embraced cutting the cord trend and moving to broadband (Netflix, Apple, Disney) and OTA (to continue to watch the basics). OTA households alone have doubled over the last 10 years to 20MM, becoming a material part of the addressable TV universe.

As cord-cutting continues to accelerate in conjunction with other factors (e.g., censorship) affecting distribution, the need for an alternative distribution platform will accelerate, ultimately driving higher rates and higher valuation all without even factoring in the true value of the spectrum.

Says, Mr. Falcone, "This opening allows for new revenue opportunities to address the mobile tv viewing marketplace and potentially subscription-based Over-the-Air TV. These Los Angeles purchases represent the first of a wave of more station acquisitions in the works as part of our build-out of a free local and national network of OTA content distribution."

The OTA market represents a compelling market opportunity. With an estimated 107MM TV households in the U.S., 57.9MM households use Cable, 28.7MM use alternative or satellite dish delivery systems while 20.4MM use OTA antennas - representing 44.8MM people. As any TV set purchase comes equipped by federal law to be OTA accessible, the adoption opportunities are massive if the right offer is presented to the market that is already growing weary of the recurring costs associated with content subscriptions.

An even bigger opportunity lies in the forthcoming advent of NextGen TV. In late 2017, the Federal Communications Commission (FCC) voted to allow broadcasters to use the Next Gen TV using the new ATSC 3.0 broadcast standard on a voluntary basis. This new OTA broadcast technology offers high definition, mobile video, 4K resolution video, interactive features like polling and voting as well as e-Commerce capabilities for TV-based shopping. Sovryn's plans include leveraging these innovations and others to bring a truly modern interactive experience to consumers for free.

About Madison Technologies / Sovryn Holdings, Inc.

Press Contact
Jeffrey M. Canouse
Madison Technologies, Inc.
770-235-6053
jeff@madisontech.io

SOURCE: Madison Technologies, Inc.

View source version on accesswire.com:
https://www.accesswire.com/643044/Madison-Technologies-Inc-Completes-Purchase-of-Los-Angeles-TV-Stations-KNLA-KNET

FAQ

What is the significance of Sovryn.TV's acquisition of TV stations in Los Angeles?

The acquisition of KNLA-CD and KNET-CD enhances Sovryn.TV's capabilities, providing immediate cash flow and paving the way for future growth in the OTA market.

How much did Madison Technologies (MDEX) spend on the Los Angeles TV station acquisition?

Madison Technologies, Inc. acquired the two Los Angeles TV stations for $10 million.

What are the future plans for Sovryn.TV after acquiring the TV stations?

Sovryn.TV plans to expand its station portfolio significantly, aiming to acquire up to 100 stations nationwide within 12-14 months.

How is the OTA market expected to perform in the coming years?

The OTA market is expected to grow significantly as more consumers opt for alternatives to traditional cable, supported by the increasing adoption of OTA technology.

What technology advancements does Sovryn.TV plan to utilize?

Sovryn.TV plans to leverage NextGen TV technology, which offers high-definition and interactive features to enhance viewer engagement and experience.