Despite its micro-cap share price, PeerLogix, Inc. (OTC: LOGX) is becoming an increasingly powerful advertising technology and data aggregation company in the streaming-video analytics space. That strength comes in part from being one of only a few select companies that integrate their own software as a service (SAAS) platform to enable the tracking and cataloging of over-the-top (OTT) viewership data to determine consumer trends and preferences upon media consumption. Other parts of the platform are also impressive.
The quantitative features of the platform may be the standout asset. And it’s comprehensive and detailed platform configuration allows the company to be defined by its innovative and forward-thinking capabilities. Those capacities include PeerLogix’s patented platform that collects, catalogs, and analyzes over-the-top data, including IP addresses of the streaming and downloading parties, the name, and media type (movie, television, documentary, genre) of programs watched. That data is then filtered through a combination of licensed, publicly available, and proprietary databases to provide insights into consumer preferences. The output also offers predictive analytics that can be extremely useful to a growing list of potential clients, including digital advertising firms, product and media companies, entertainment studios, and investment companies.
The company’s strategic moves, including a significant partnership in 2019, have positioned PeerLogix as the established standard for tracking non-subscription based OTT engagement data. That partnership makes that position stronger by broadening the resale availability of PeerLogix’s rich television and movie consumption data through enhanced media buying & marketing execution platforms. It also expands the company’s sales and distribution reach and leverages the substantial increase in demand for OTT viewership data and video supply that started to gain momentum in 2019.
However, while the momentum for OTT data services started to build in 2019, the market has gotten even stronger in 2020 as a direct result of conventional television’s accelerating loss of cable subscribers from cord-cutting. And with the pace of cord-cutting increasing, the revenue-generating opportunities for PeerLogix increase substantially.
Now heading into the back half of 2020, PeerLogix is extraordinarily positioned to capitalize upon opportunities from a wide range of clients who have a critical need for reliable, current, comprehensive, and incomparable data to support their digital advertising and investment-specific strategies. For the company and its shareholders, proper execution of strategic objectives may deliver exponential returns.
PeerLogix Is Positioned To Tackle Industry Heavyweight Nielsen Holdings
An interesting story developing is how micro-cap PeerLogix is already positioned to challenge industry viewer-ratings heavyweight Nielsen Holdings (NYSE: NLSN). It’s a contest that PeerLogix is primed to win and, as a result, potentially emerge as the leader in providing the most current, comprehensive, and predictive streaming-data viewership analytics to a long list of professional clients. If even modestly successful in its challenge, PeerLogix can reap substantial windfalls.
What’s at stake in the battle for streaming-video data dominance? Potentially billions in revenue in the long-term. And that opportunity is being exacerbated as consumers find more convenient, less costly, and high-quality alternatives to cable TV, namely through streaming-video content and channels. That shift in consumer behavior is not only creating a revenue-losing nightmare for cable TV providers like DISH Network (NASDAQ: DISH) and Charter Communication (NASDAQ: CHTR), but is also exposing a massive opportunity for PeerLogix to fill the gap created by the need for real-time viewership analytics.
What’s most important to keep in mind when evaluating the PeerLogix market opportunity is that despite the change in viewership habits, media buyers still require critical and targeted data to correctly place billions in ad dollars targeting specific audiences and demographics. PeerLogix fits precisely into the equation by having a unique and powerful ability to analyze viewership data from roughly 180 million households and more than 50,000 premium TV shows and movies. Compare that number to Nielsen Holdings, who generally collects data from approximately 22,000 homes to compile its consensus of where advertisers should spend their money, and a common theme emerges – PeerLogix offers a better consumer-driven analytics package.
From a comparative perspective, it’s not an entirely fair battle when it comes to the number of households tracked. But, when you add that PeerLogix provides real-time, updated daily information compared to Nielsen’s week-old data, the advantages from the Peerlogix product intensifies.
OTT Pioneer Pluto TV Exemplifies The Opportunity
For those not paying attention, the multi-billion dollar entertainment industry is changing, and Pluto TV is a prime example of the evolution. Similar to what fee-based cable providers offered, Pluto TV delivers a multi-channel streaming video platform to viewers at prices that start at zero. At last check, they provided viewers with more than 250 channel listings and on-demand options that include top movies, access to syndicated sitcoms, and educational content. They also offer an extensive listing of news channels produced by major national broadcasters like ABC, FOX, and CNN. Their penetration into the market attracted ViacomCBS (NASDAQ: VIAC), who purchased the streaming channel for a reported $340 million in 2019. Industry experts suggest that their purchase is just a precursor to a wave of consolidation.
Moreover, as good as it is for viewers to benefit from comparable and often free entertainment alternatives, the opportunity for streaming data-mining companies can also be substantial. That’s good news for PeerLogix, especially when they can quench the thirst for timely, accurate data to guide multi-billion dollar ad-spending and investment decisions. As well, PeerLogix may be the only company that currently offers these clients a comprehensive package of streaming viewership data to help facilitate the effective allocation of budgets toward the right demographic market.
Additionally, PeerLogix brings experience, and for the past six years, has been leveraging its patent-protected streaming-data collection platform to provide comprehensive real-time analytics packages to entertainment and investment professionals. They are also earning the recognition they deserve by getting credit for offering one of the only analytical packages that provide meaningful and actionable data that is updated daily and offers real-time forecasting and predictive analysis.
Streaming Data Analytics Puts PeerLogix In A $42 Billion Market
PeerLogix, for those newly introduced, is already entrenched into a video-streaming market that reached more than $42.6 billion in 2019. And that number, while already significant, is expected to grow by more than 20.4% annually through 2027. Those kinds of numbers turn heads of advertisers, programmers, and even hedge-fund managers that make money by making informed decisions. And their attention is rightly focused on the analytics packages that PeerLogix can offer.
PeerLogix, at its core, creates and sells real-time analytical and quantitative data sets to clients. That data is crucial to guide decisions related to ad-spends, content purchasing, and investment. Each report is generated from viewership data of more than 50,000 premium TV shows and movies across more than 180 million households and open source OTT networks. That reach has helped PeerLogix establish a massive collection of data that includes historical and current content- a differentiating feature from competitive platforms.
Perhaps the most important feature is its depth of analysis. As noted above, its most famous competitor, Nielsen Holdings, gathers data from roughly 22,000 households to prepare its national, weekly industry report. That’s a far cry from the 180 million homes that PeerLogix uses to generate its daily business updates. That difference not only exposes limitations in competitive products but also highlights a new measure of streaming data collection available to savvy industry clients.
And to those that believe PeerLogix’s competitive position can be easily poached, think again. The PeerLogix platform has earned patent protection for data collection processes, OTT database integration, and insight development algorithms. Further, beyond its IP portfolio raising the barriers to entry, it adds an intrinsic layer of value that may be attractive to those looking for growth through consolidation.
Why Use The PeerLogix Information Platform?
If information is power, it makes sense to find those that can deliver it. PeerLogix is seizing upon that information-hungry market opportunity by observing, cataloging, and analyzing a massive amount of raw OTT viewership data. Collecting that data is just the first step. The specialization comes after that data is collated and packaged into unique data-set packages, both pre-constructed and customized, to create actionable value across an evolving and expanding set of industries. Most unique to any competitor, the PeerLogix reports update daily and provide a real-time snapshot on the viewer and content-specific trends. Multiple business sectors can benefit.
For instance, media buyers utilize PeerLogix’s OTT viewership data to target advertising campaigns directly to households streaming OTT TV shows and movies. The data purchased provides a road-map for users to make informed purchasing decisions on real-time viewership behaviors that take into account the entire spectrum of ‘cord-cutters’ as targeted advertising audiences across the digital advertising landscape. Remember, too, the data in each report is generated from more than 180,000,000 households and 50,000 premium TV shows and movies. Thus, its value is made from an enormous viewer population that provides a significantly more robust and dependable set of analyses.
A second substantial market opportunity comes from what PeerLogix calls “Content acquisition insights.” This package provides crucial information to larger OTT platforms, like Pluto TV, who can leverage PeerLogix’s streaming viewership data to analyze content and programming demand trends worldwide. That information can then drive effective content procurement and purchasing decisions. Moreover, the combination of real-time and historical data provided can be critical to their profitability, and it enables them to generate a better return on content investment.
Moreover, the predictive models, tables, and graphics that PeerLogix provides clients may allow service providers to buy new content low and sell high. They can especially benefit from PeerLogix’s proprietary algorithms that can indicate growth in viewership demand and point toward content that can drive the highest number of subscribers with the least amount of churn.
A third client market may be the most intriguing opportunity. The platform’s “entertainment investment insights” provide valuable tools that deliver timely, real-time data to investment companies looking for investment-specific data. While information may bring power, time is money. Consider the advantage a hedge fund would have if they had information about major entertainment and service providers before it hit the market. With PeerLogix, they can get it.
A glaring example came last July when Netflix reported what the street considered disappointing earnings. Those results caused the stock to lose roughly $19 billion of its market cup just four days later. Although those results may have been a surprise to Wall Street, the PeerLogix platform may have kept some clients in the black by showing real-time trends for almost every major broadcaster. As clients, they may have benefited from PeerLogix’s proprietary algorithms that have proven to be predictive of viewership trends on subscription and non-subscription streaming service platforms. More specifically, its graphical representations would have provided a real-time competitive analysis that showed declining viewership within some material properties. Thus, while information may be power – time is money.
For PeerLogix, and its shareholders, though, it’s the combination of all three product offerings that can create shareholder value through a diversified revenue stream. Thus, with a multi-million dollar near-term market opportunity and a micro-cap share price of roughly $0.05 per share, a substantial value opportunity may be exposed for the long-term investor. And with the company’s revenue increasing along with liquidity in its shares loosening up, the valuation may soon follow the company performance.
Will 2020 Be The Breakout Period
Last year’s strategic decision, combined with sector growth and user adoption, has set up the company for a potential breakout period in the coming quarters. The factors for both near and long-term success are already in place. Investors may already be recognizing the value that PeerLogix can offer by sending its shares higher by roughly 56% during the past month. That compares well to Nielsen Holdings, who lost almost $2 billion from its market cap since the start of 2020.
Although PeerLogix may only be starting its journey to becoming the “Nielsen” of the streaming-data viewership world, its inherent advantages in the competitive landscape can’t be ignored. Real-time data, graphical representations, data from 180 million households and daily real-time updates are only a few benefits. The biggest asset comes from the company’s ability to meet the challenges of the new demands created from the streaming video industry.
And by meeting and exceeding those demands, PeerLogix, through its innovative and well-protected data-mining platform, may not only become a streaming-data analytics force to be reckoned with…it may become THE force.
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