TELEWEST PARTNER WITH SIT-UP

TELEWEST Communications, the leading broadband communications group, are going into partnership with sit-up Ltd, in a deal that creates a new force in TV home shopping.
The two groups are to combine their home shopping channels - Screenshop and bid-up.tv – and will look to launch new channels and aggregate further screen commerce content.
Telewest are to inject £14.8 million cash into sit-up, which was founded last year by ONdigital pioneers Ashley Faull and John Egan. In return, sit-up will buy Screenshop from Flextech, the content arm of Telewest, for £10 million. Telewest will have a 38 per cent stake in the enlarged sit-up business.
The two existing channels offer t-commerce across a range of platforms, which will now include long-term carriage for bid-up.tv on Telewest’s Active Digital platform. There are clear opportunities for the two channels to enjoy enhanced combined revenue streams as well as sharing purchasing and distribution costs.
Mark Luiz, Chief Executive of Flextech, said: “Flextech have been pioneers of and long-term believers in the power of interactive TV and screen commerce. This deal is a further example of our strategy to create value through forging partnerships with other well-managed, entrepreneurial businesses. It also harnesses our combination of content skills and the strength of the Telewest platform.”
The channel complements Screenshop, which is a 24-hour infomercial channel selling a wide range of beauty, home and fitness products. The cross promotional opportunities are significant, not just between the two shopping channels but also from Flextech’s wider portfolio of pay-tv services and websites. (CD)