Viva Entertainment Group Inc (OTCMKTS:OTTV) On The Verge Of A Breakout

Viva Entertainment Group Inc (OTCMKTS:OTTV), which designs and markets Internet Protocol Television, and Over The Top applications, has been seeing a large amount of volume recently. In May, the company put out put out an iOS version of VIVAlive App for all iPhones and iPads. Additionally, the app was already available for Android’s Google Play in June. These two events moved the share price quite a bit.Well, the company did not stop there. In July, OTTV signed a new distribution agreement, announced a restructuring of debt, and made VIVAlive available for Roku® users. The new announcements are responsible for the strong market reaction. Before we provide you all the details in this article, have a look at the share price action.SourceBusinessLet's recap the business model of OTTV. This is what we said in our previous article "Viva Entertainment Group Inc (OTCMKTS:OTTV) Running Up The Charts" regarding this name:

"Internet protocol television (PITV)/over the top (OTT) application for connected television, desktop computers, tablets and smartphones. OTTV’s competitive advantage over traditional media channels is that the television services are delivered over the Internet. The traditional terrestrial and cable television networks are not used." Source

Have a look at the App here:https://youtu.be/R1BYP0cyYVoRecent DevelopmentsThe following are the most outstanding recent developments. On July 6, 2017, it was put out that a new Exclusive Distribution Agreement for the State of Puerto Rico with Integrated Ventures Inc (OTCMKTS:EMSF) has been signed. Under the agreement, the other party agreed to "deploy, market and distribute VivaLive TV's products, content and services to its commercial and residential clients, including wireless service providers and dealers." Additionally, VivaLive TV will also be promoted with major hotel chains and healthcare plans. In our opinion, the new agreement was appreciated by the market, as it means a future increase in revenues. Johnny Falcones, CEO and Founder of Viva Entertainment Group, explained:

"With VivaLiveTV's launch being a complete success, I am very confident that this newly signed Agreement will give our company a direct access to new markets, deliver millions of subscribers, create major buzz and an extensive exposure of our OTT platform and provide the new opportunity to build and expand VivaLiveTV Brand among Latino community. This strategic alliance is an example and the beginning of great things to come in terms of securing all-new distribution channels. It will speed up the introduction and expansion of the VivaLiveTV platform and will add to the growing revenue stream." Source

In addition, on July 25, it put out the the integration of VivaLiveTV with Roku®. Who is the new partner? If you don't know Roku®, let us remind that it is a "TV streaming platform in the US with nearly 7 billion total hours streamed by the users (during the first half of 2017)". The CEO noted that the new agreement will bring significant revenues to the company.

"This integration will create a significant revenue generating and marketing opportunity for Viva by potentially connecting VivaLiveTV with Roku® 15 million monthly active users. Roku® devices are accessed by more households than any other OTT streaming device." Source

Furthermore, on July 27, 2017, the company noted the integration of VivaLive TV with Amazon's Fire TV, which is the second largest TV streaming platform in the US with estimated 2017 numbers of 35.8 million users and 21.3 percent of connected TV users. Johnny Falcones, the CEO, explained:

"VivaLive TV is now integrated with two of the largest streaming providers in US: Roku and Fire TV. Combined, both platforms provide Viva with access to a whopping 43.3 percent of connected users in US. Integration with Fire TV will bring many advantages to the VivaLive TV users including all-new voice assistant feature which will drive up and expand user base as smart home solutions became more and more popular." Source

This upgrade is being beta tested and will be available to all VivaLive TV customers by August 4, 2017.Regarding the financial situation of OTTV, on July 20, 2017, it put out the reduction in the company's convertible debt, where debt decreased from $725,800 to $256,371. The information was released along with the 10-Q report. Johnny Falcones, Chief Executive Officer of Viva, explained:

"The Company is committed to streamlining its financing and operations to support its growth opportunities and looks forward to providing timely updates to our shareholders as they become available. Going forward, Viva plans to secure non-dilutive and more company-friendly forms of funding structures to successfully support its distribution and marketing operations." Source

What does a debt reduction mean for the shareholders? It means that the financial risk supported by them was reduced. Hence, the intrinsic value of the shares increased. You need to comprehend the concept of seniority in finance to understand why the transaction is a good news.ConclusionWe could see in the press releases put out that OTTV is growing through the integrations with players, such as Roku®, and Amazon TV. Additionally, the fact that Integrated Ventures, Inc. will market the company's app in Puerto Rico was also very significant news. To conclude, the reduction of debt announced recently should have been appreciated by the market, as the intrinsic value of the shares increased. To sum up, check the company's announcements, as it is delivering significant developments and boosting shareholder value.Be sure to check out our coverage on OTTV.We will be updating our subscribers as soon as we know more. For the latest updates on OTTV, sign up below!Image courtesy of integrate technology via FlickrDisclosure: We have no position in OTTV and have not been compensated for this article.