SCA expands with $5 million stake in OVO Mobile

Southern Cross Austereo (SCA) has taken another step towards becoming more than ‘just’ a radio broadcaster, taking a $5 million dollar equity stake in telco start-up OVO Mobile.

It builds on a relationship fostered in May last year that allowed OVO Mobile to offer customers unlimited access to the Hit Network and Triple M, free of data charges, via its OVOPlay app.

Now, as the telco focuses on expanding the digital offerings on OVOPlay, SCA’s financial involvement means it can ramp up its push to sign up more sports and entertainment offerings.

Ultimately, that will mean bigger audiences and the potential to bring more people across to its mobile plan offerings.

For SCA, there’s the attraction of connecting with OVO Mobile’s customers and access to its digital broadcasting partners that include World SuperBikes and Supercheap Auto V8 Supercars team.

SCA chief sales officer Brian Gallagher believes sport is the common denominator between the two companies and that synergy will spell success.

“SCA is attracted to OVO’s business model of offering compelling mobile telecommunications offerings built around its own digital platform for unique sport and entertainment content.

“Sport is integral to our Triple M network and increasingly popular on our PodcastOne network with podcasts like Howie Games. We think there are great untapped opportunities for us to work with OVO to bring great content to the target audiences our clients are seeking to reach.”

OVO is a mobile virtual network operator, which means it doesn’t own the wireless network infrastructure. Instead, it operates on the Optus 4G Plus network and recently signed a 5-year deal with Optus.