StarMedia, WorldGate Target Cable Access
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In a deal structure vaguely reminescent of last week's AOL-Time Warner merger, StarMedia will contribute Spanish- and Portuguese-language content for WorldGate's (WGAT) Internet access service, which operates in Latin America and Spain. StarMedia (STRM) will bring TV optimized content, games, search, interactive advertising and other features to the TV format on WorldGate's Every TV Service.
Financial terms were not disclosed.
The enhanced service will be deployed in Argentina, Brazil, Venezuela, Peru, Mexico and Ecuador in the near future, with trails and rollout on the schedule for Spain.
The company expects the cable subscriber market to grow from 13 million to 28 million over the next four years, according to Strategis Group studies.
Earlier this month, StarMedia announced that its shopping channel added 43 new merchants over the past year, an increase of more than 600 percent over the previous term. During the past year, StarMedia Network has added Dell Computers, FAO Schwarz, Brazilian electronics merchant Gradiente, LatinGrocer and The Disney Store, among others, to its roster of e-commerce partners.