News
PlayPhone acquires Pitch Entertainment
Stuart O'Brien May 7 2008, 12:00pm
Acquisition signals start of major European push for US D2C mobile content provider PlayPhone.
PlayPhone has completed the full acquisition of UK-based mobile content provider Pitch Entertainment for an undisclosed sum. Officially, the deal is described as a merger.
Speaking to ME, PlayPhone CEO Ron Czerny said that in addition to giving the company access to European consumers for its own D2C services, it will also allow PlayPhone to export content services it manages on a B2B basis for the likes of ABC Television and Cartoon Network.
In addition, Czerny said PlayPhone is looking to partner with local brands on a B2B basis to run content stores in the same way it does for Wal-Mart in the US, with 5-6 new 'global' deals due to be tied up in 3Q08.
The deal is set to shake up the European D2C market, which is currently dominated by three big players in the form of Zed, Buongiorno and Jamster.
Pitch currently operates in the UK, Germany, Sweden, Norway, Australia, Spain, Belgium, Austria, Ukraine, Switzerland, Singapore, Malaysia, Ireland, South Africa, US, Italy, France, Lithuania and the Netherlands.
No decision has yet been taken on whether the Pitch Entertainment moniker and its Splash portal brand will remain, but Martin Bowley, Pitch's highly-regarded CEO, is retained to head up the European business along with the company's entire staff.
Czerny said: "The aim of this deal is to take the PlayPhone brand global, in addition to all the brands we currently work with in the US. We are now present in 23 countries, with China coming on line soon."
The international expansion of PlayPhone’s destinations has already started with the launch of Cartoon Network in Brazil, with additional partners in more territories to follow.
Czerny said the maturity of the European mobile content market meant the acquisition of Pitch was the best way of extending the PlayPhone footprint, with expansion in other territories likely to be organic.
