| Fri 28 Jul 2006, 14:57 | | Primedia Limited - Announces New Digital Media Net |
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PMA PMAP PMN
PMA
Primedia Limited - Announces New Digital Media Network Joint Venture
Primedia Limited
(Incorporated in the Republic of South Africa)
Registration number 1993/003355/06
Share code: PMA & ISIN: ZAE000035119
Share code: PMN & ISIN: ZAE000035127
Share code: PMAP & ISIN: ZAE000080529
("Primedia" or "the Company")
Primedia Announces New Digital Media Network Joint Venture
Primedia Limited (Primedia) today announced that it had acquired a 50%
shareholding in Merchint, a company focused on developing proprietary software
and hardware technology that can broadcast or narrowcast digital media into any
environment where a consumer is at the point of making a purchase decision
.Merchint"s digital media network infrastructure provides a unique opportunity
for Merchint to become the significant market leader in fully managed digital
signage networks and the largest wireless in-store network in South Africa.
Merchint has been, up until now, a wholly owned subsidiary of Barrows Design and
Manufacturing, the market leader in retail media in the South African market.
Primedia CEO William Kirsh said: "We are investing in a company that has
developed world class technology over the last three years. Following very
positive trends internationally, this new media type is enabling advertisers to
very effectively target consumers at the point of sale, which is where 70% of
all purchase decisions are made. We will now also be able to leverage a number
of our existing out of home distribution channels, providing greater
effectiveness and flexibility to our customers."
Primedia paid R25 million for its initial stake, with a further top up payment
of R75 million over the next 4 years, based on the future performance of the
company. "On the basis that we make this full payment, the transaction will be
very earnings enhancing to Primedia".
Commenting on the transaction, Barrows, and Merchint Co-Chairman Derek Woodhouse
said: "Merchint identified the ongoing fragmentation of traditional TV
advertising and the significant shift to retail as an alternative media format,
as an ideal opportunity to create a new marketing medium using a combination of
merchandising intelligence and digital signage. The synergy between our
innovative technology suite and Primedia"s advertising reach and expertise will
provide existing and future clients with the complete advertising solution,
ideally placing Merchint at the cutting edge of global technology and media
planning."
Richard Barrow, Barrows Co-Chairman continued: "Barrows" strong relationships
with many of South Africa"s top brands and retailers and Primedia, South
Africa"s leading "out of home" media owner, make Merchint and Primedia ideal
partners in this exciting new joint venture."
-ends-
Notes to Editors:
About Digital Media Networks
"A digital media network refers to a network of Screens (LCD"s, LED"s or Plasma)
that deliver specific targeted advertising or content, such as product
advertisements, corporate advertising, weather updates, news etc. These digital
signs are remotely managed using satellite, GPRS and RFID technology to download
content onto the specified screens (narrowcasting) or the entire universe of
screens (broadcasting) to cater for differences in the viewing audience from
location to location, morning to afternoon, etc.
In retail environments, screens are frequently placed in key store departments
and the adverts played on those screens are tailored to the specific products or
advertising campaigns offered at that point. In other environments like motor
vehicle showrooms these screens would be utilised to promote dealership
attributes as well as the motor vehicle brand itself. The applications for
digital media are vast and it is recognised globally as a new media type to
rival television and radio. The entire media industry globally is adopting
digital media as the next big thing and the reasons are self-explanatory. "When
asked why he robbed banks, Willie Sutton, a notorious thief, famously replied,
"Because that"s where the money is." Advertisers are now applying a similar
logic. With the advent of hundreds of television channels, the Internet, and
that particular scourge of the advertiser, the personal video recorder (PVR),
consumers are harder to reach than ever. So where is the hottest place to put
advertisements? In supermarkets - because that"s where the shoppers are." Signs
of the times, Global Technology Forum - THE ECONOMIST
About Barrows Design and Manufacture (Pty) Ltd
Barrows is a global Design and Manufacturing company with head offices in South
Africa where it is a market leader in the retail media industry. Retail media
is media or advertising material that is produced for placement within retail or
any other environment to promote or market a brand and ultimately influence a
purchase decision.
Barrows has fifteen years experience in the industry and has won numerous global
awards, including Global Display of the Year at POPAI (Point of Purchase
Association International) 2005 in Las Vegas. Barrows boasts an ever-expanding
stable of some of the worlds most prestigious clients and brands. Globally
operations have been launched in China, Turkey and London.
Sandton
28 July 2006
Sponsor
Investec Bank Limited
Enquiries:
Primedia 011 506 3153
Brunswick 011 268 5750
Gareth Sharp 083 287 3180
Date: 28/07/2006 02:57:06 PM Produced by the JSE SENS Department
