By Aimee Chanthadavong
Cudo CEO Billy Tucker told Retailbiz that the joint venture was an obvious move for the company to gain support in the new market.
“Mediaworks was the obvious choice because of the depth and breadth of their media assets. Plus their commitment to growing an online business like Cudo is second to none,” he said.
Mirroring the Australian model where the reach and impact of the Nine Entertainment Co are harnessed to engage consumers and offer media support for merchants, the joint venture in New Zealand will see Cudo’s presence amplified through TV3 and FOUR plus regional radio stations.
MediaWorks group managing director Sussan Turner said the Cudo business model will compliment the company’s plans.
“With the power of TV3 and FOUR, plus our radio brands including The Edge, More FM, The Breeze, The Rock, RadioLIVE and Solid Gold along with our online offering, we believe the potential of this initiative to be significant. Ecommerce ventures work best when large numbers of consumers are driven to the trading environment,” she said in a statement.
When asked whether Cudo’s move was to compete with buying group rival Spreets, which was recently bought my Yahoo!7, Tucker said the company is not threatened by the competition.
“Competition is good, and even though we are number one it is always rewarding when players as big as Yahoo!7 decide to follow your model,” he said.
“It will be interesting to see whether or not they will be able to adapt to this winning formula or if their existing approach is too entrenched in their DNA.”