Global media and marketing company Crowd Media Holdings Limited (ASX:CM8) has struck a deal with London-based Pluto Services Limited (www.pluto.travel), marking a major step towards its plan of developing digital based fintech and insurtech products for the millennial market.
In an announcement made on 13 January 2020, Crowd announced that it has entered into an exclusive arrangement with Pluto Services to develop an appropriate commercial structure that would leverage Crowd’s core strengths to assist Pluto to roll out its recently launched award-winning “millennial” travel insurance products into the EU market (excluding UK).
Following the release of this news, CM8 stock price witnessed an upward lift of 4.348% during the day’s trade.
Understanding the Deal
Pluto, a British Airways Traveltech company, recently identified that 70% of customers weren't satisfied with their current insurer and 38% of 18 - 34-year olds did not even buy travel insurance when going away, mainly due to following reasons:
- Travel insurance is confusing & complicated
- Buying it is painful & slow
- Millennials don't trust insurers to help when things go wrong
In order to successfully roll out its recently launched award-winning “millennial” travel insurance products into the EU market, Pluto has joined hands with Crowd to develop an appropriate commercial structure. Luckily for Pluto, Crowd has experience in digital marketing to millennials and Gen Z in most European countries and across 12 different languages.
Considered as a pioneer in influencer and social media marketing, Crowd Media claims to understand the global millennial generation very well and has helped provide creative solutions for several clients of popular brands which include Nescafe, ESPN+, L'Oréal, FOREO and many more.
Under the exclusive arrangement, both the parties have agreed to utilise an initial 90-day exclusivity period to settle for a partnership framework that may include an all-encompassing digital marketing strategy across Europe (excluding the UK) and an appropriate commercial partnering arrangement between the parties.
Crowd believes that this collaboration is in line with the company’s strategic vision of being a tech-based, vertically integrated social commerce business selling exemplary products and services that are integral to the lives of its customers.
2020 Kickstarts on a Positive Note
Entering into an exclusive arrangement with Pluto is the second major announcement the company has announced in the last one week. Recently on 8 January 2020, the company had announced regarding the execution of Letter of Intent (LOI) with London-based technology company Forever Holdings Ltd (FHL) for launching of a ‘voice and-visual’ interactive digital media product for a range of sectors including influencer marketing, customer service, healthcare and education.
As per the LOI, both Crowd and FHL have agreed to evaluate the partnership opportunity, allowing Crowd to leverage off its core strengths of Q&A chatbot technology, delivery of digital content via subscription, digital social media and influencer marketing combining with FHL’s significant strength in the voice-and-visual interactive digital media sector. This announcement was also in line with the company’s recently announced strategic vision.
At market close on 13 January 2020, CM8 Stock was trading at a price of $0.024 with a market cap of around $6.52 million.
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