Updated Nexstar Joint Venture Agreement
Milestone (AIM: MSG), the AIM and Social Stock Exchange quoted provider of digital media, technology and social impact solutions announces that its subsidiary Nexstar has updated and strengthened its agreement with its joint venture partner Black Cactus Holdings Limited and its affiliates.
The agreement gives Nexstar exclusive access to all intellectual property of Black Cactus with the additional IP and technical know-how specifically surrounding blockchain development and Fintech solutions. The terms of arrangement also allows for each party to commute commissions from sales generated via the agreement into stock in the other party up to a pre agreed level.
The additional IP includes Fintech, cryptocurrency, card payment services and media publishing and distribution. Black Cactus has for some years been funding and developing technology for Money over IP, payment solutions, media publishing and distribution and more recently commenced developing new applications and platforms utilising blockchain.
Nexstar's suite of technology is disruptive - it combines blockchain, social media and analytics to provide products and services allowing the end user with more control and security over the data and IP.
Blockchain is seen as important a development as the internet was 28 years ago. A recent report from Santander estimated that blockchain could reduce banks infrastructure costs by between US$15 -20 billion per year by 2022. Aite Group recently said that bank spending on blockchain is expected to surge to US$400 million in the next 2 years.
One of the most exciting additions to this agreement is the upgrading of the Nexstar music publishing and distribution platform which will be underpinned by the blockchain technology allowing the artists to control their intellectual property, his payments and royalties.
In the $15 billion recorded music industry, musicians currently deal with a series of intermediaries such as publishers, distributers and record labels and as a result can earn as little as 14% of the proceeds of sales and wait months or years for payment.
The updated agreement also incorporates existing financial deals that Black Cactus has negotiated on its own behalf. This includes its relationship with Benefits on Madison, a Canadian Fintech development partner which has over 3000 customers globally from the banking, healthcare and insurance sectors and the public sector. Of these customers over 50% are Fortune 100 companies.
At present this additional IP is not revenue generating however the Company sees a big future commercial opportunity in the marketplace for these services and has already received some expressions of interest.
Deborah White, CEO of Milestone commented: "This is an exciting development for the Company - it further enhances our technology offering and secures Blockchain development capability across our portfolio".