Destination Television, Inc. (DSTV.OB) recently announced an update regarding the company’s prospects and outlook. The company is a media production, promotion, and advertising company focused on strategically placing digital signage in high-traffic, out-of-home (OOH) locations.
In November 2007, Destination fully acquired American Broadcast Groups LLC (ABG), an advertising sales company. ABG has become the sales division for all of the Destination Television OOH networks. The ABG division has been able to create a steady revenue stream from local and regional advertisers purchasing spots on Gym TV™, Bar TV™, and Hotel TV™.
The potential for growth within this niche of advertising is quite high, and the company is expanding its coverage area. The management team has made a decision to shift its focus to the acquisition of other digital signage networks. In late 2007, Destination Television began executing exclusive licensing agreements to place local and regional advertisers on established networks.
“Fit TV” with its 30 locations in North Carolina, and Starpoint Digital Media Network located in health clubs in the Southeast, were the first two networks to execute agreements. The latest major agreement is with PharmaseeTV, which currently airs health and wellness programs that reach over 70 million consumers from its pharmacy locations.
Destination Television airs its “advertainments” along with a blend of digital ads, new music videos and Hollywood blockbuster movie trailers. The company offers broadcast quality content tailored to its target audience so that screens are “watched”, not merely “seen.”
The current Destination Television sales model provides advertisers with 10-second spots that air five times per hour per location. Typically, each advertiser signs a six-month contract averaging $1,000 per ad. Destination has determined that each location is able to fulfill the needs of up to 20 advertisers annually per screen.
With its expanding area of coverage and with ABG as its “sales engine”, it looks like Destination Television has the right combination for tremendous growth.
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