Consumers in the U.S. Continue to Abandon Traditional TV through Cable
According to a recent Nielson Report, Zero-TV households has more than doubled since 2007
SUNNYVALE, Calif., June 4, 2013 /CNW/ - LeoNovus™ Inc., (TSX: LTV) a leading Internet technology developer with its multi-dimensional SMART Media Software Platform™ and SMART Networks™, today announced that according to a recent Nielson report1, the number of "Zero-TV" households in the U.S. has grown to more than 5 million. Nielsen defines "Zero-TV" households as those that don't fit into its definition of a TV household. It doesn't mean that those households don't have traditional TV sets, but it's just that the majority of them get their content from Internet connected devices. In short, it means they're not paying for cable. One of the most interesting finding is that nearly half of these "Zero-TV" households are under the age of 35, marking a clear trend in viewing habits.
In studies from Forbes and others, findings suggest that there are a larger segment of American households that are reducing their number of premium channel subscriptions through their cable company in favor of video streaming services offered through Netflix, Cinema Now, Amazon Instant Video, HuluPlus, and others.
The consumer should have choices, stated Gordon Campbell, CEO of LeoNovus. The LeoNovus software platform can support OTA (over the air) delivery of linear TV, as well as all video streaming services via its high performance browser, This enables our cable and consumer electronics manufacturer partners to deliver a variety of content to their customers."
LeoNovus believes these reported findings are reflecting the global trend of accessing content on demand through the Internet and that its SMART Media Software Platform can enable the revenue models needed for their businesses. LeoNovus has changed the way high-value Internet content is organized, monetized, and delivered to end users
LeoNovus also announces that on June 4, 2013, it granted a total of 2,210,000 options to purchase common shares of the Company to directors, officers and employees in accordance with the LeoNovus stock option plan. The options expire (5) five years from the date of grant and will vest over a two (2) to four (4) year time frame from the date of grant. Of these options, 1,410,000 were granted to directors and officers of the Company and 800,000 were granted to employees. In consideration and approval of the option grant, the Company's board of directors (the "Board") took note of the fact that the option grants to officers and directors are related party transactions, as defined in "Multilateral Instrument 61-101" Protection of Minority Security Holders in Special Transactions ("MI-61-101") and that it is in the best interests of the Company to grant the options in conjunction with the option grant to employees. The Board determined that the option grants are exempt from the formal valuation and minority approval requirements of MI-61-101 under sections 5.5(a) and 5.7(a) of MI 61-101 respectively.
LeoNovus Inc., offers a unique technology approach to a diverse group of markets that require efficient processing, preservation, and accurate management of immense amounts of data with the benefit of significant energy and real-estate cost reductions, while at the same time offering companies and organizations within these markets the ability to create new revenue streams. Currently, LeoNovus has made inroads into the Internet, data center, hospitality, and health care markets. The LeoNovus Software platform also supports connected devices with access to all the features, content, and functionality available on the Web without the malware, security and support issues of a PC. LeoNovus seeks to change the way high-value Internet content is organized, monetized, and delivered to end users. Learn more at www.LeoNovus.com
LeoNovus shares have traded on the TSX Venture Exchange since June 10, 2009. Further information about LeoNovus can be found in its filings with Canadian securities regulators, which filings are available at http://www.sedar.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information included in this press release is forward-looking and may involve risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors that might cause a difference include, but are not limited to, competitive developments, risks associated with LeoNovus' growth, the state of the financial markets, regulatory risks and other factors. Forward-looking statements included or incorporated by reference in this press release include statements with respect to proposed terms of, and the intended use of proceeds of, the Offering. There can be no assurance that any statements of forward-looking information contained in this release will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral statements containing forward-looking information are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Unless otherwise required by applicable securities laws, LeoNovus disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on any statements of forward-looking information that speak only as of the date of this release. More detailed information about potential factors that could affect LeoNovus' financial and business results is included in public documents LeoNovus files from time to time with Canadian securities regulatory authorities and which are available at www.sedar.com.
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1The Nielson Cross-Platform Report
TSX Venture Exchange Symbole : LTV
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SOURCE: LeoNovus Inc.
For further information:
Jim Fredrickson, Chief Financial Officer, T: +1-408-541-9400, F: +1-408-541-9410, IR@LeoNovus.com