THE BUSINESS OF INTERTAINMENT
The Company has evolved from a traditional marketing and sales company focusing on third party opportunities to building proprietary company based programs. In April 2007, the company underwent a name change from Savers Plus International to Intertaiment Media Inc. in order to better identify with this ever growing internet market and become a leading enterprise in the Online new media sector. The major business of Intertainment is developing online and traditional marketing platforms for sellers to reach buyers. In exchange for viewing advertising, visitors can watch brief, fast-paced and “sticky” content to the core demographics, 18-34 year old men. Intertainment first targeted this group because advertisers found them difficult to reach as they depend less on conventional media. At the same time, this group is the most internet savy, affluent, and influence other demographics on the internet. Intertainment develops exclusive, limited market and right of first refusal content relationships with a wide range of providers including independent producers, amateur development houses, major studios, etc. and drives these relationships through a revenue sharing model. The company also produces a portion of its content internally for distribution through its various channels.
EYE ROCK DIGITAL
Intertainment’s wholly owned US subsidiary Eye Rock Digital Inc. (www.eyerockdigital.com), is a leading edge provider of video on demand, digital content, distribution, advertising and production. Eye Rock Digital aggregates and creates digital content aimed at the young, hip and technologically savvy young adult market. Eye Rock Digital develops programming for simultaneous delivery over broadband and wireless platforms. Eye Rock Digital is one of the first premium Broadband / Wireless / IPTV networks delivering a wide range of commercially produced and uncensored entertainment programming to a core demographic of males 18 – 34, as well as other select demographic groups. Eye Rock Digital programming development has focused on exciting commercial content, uncensored news, entertainment and lifestyle based programming that is TV-MA rated (television for mature audiences).
Eye Rock Digital’s programming consists predominantly of short-form, video segments under 5 minutes in length. Other formats include:
- Commercial Productions
- User Uploaded Content
- Games
- Mobile Applications (ie. Ring Tones/Wallpaper)
- Rentals (Short Form/Long Form)
- Subscription (Original and Commercial)
- Pay Per View (Concerts/Movies)
- Sponsored Content
Eye Rock strives to have a cool, edgy feel that will appeal principally to the key demographic sector, and that will attract other demographic groups that find Eye Rock’s content enticing. Eye Rock Digital has established a baseline of over 25 primary channels centered on specific content offerings. Eye Rock Digital is easy to use with a “channel selection” system that allows the viewer to focus on what they want to watch without having to search through dozens, if not hundreds, of video clips on User Generated Sites (UGC) like YouTube, Google and Yahoo video sites.
Eye Rock Digital’s Content Management System (CMS) sorts, labels and manages all the video content to provide the highest quality user experience. Eye Rock has the capacity to add more channels, based on customer criteria.
REVENUE PROGRAM
Intertainment has multiple revenue streams. Each page is designed so that there are multiple advertising opportunities. At no time, does the viewing screen block the advertising. Similar advertising opportunities are available on Eye Rock Digital’s home page and transition pages. Eye Rock Digital employs sophisticated segmentation programming that allows advertisers to reach their intended geographic audience down to the postal code. This feature, in combination with highly specialized ad server and data mining technologies, provides a major competitive advantage for Eye Rock Digital.Further segmentation of consumers can be achieved through Eye Rock’s Social Network programs. In all cases, advertisers that have selected offers based on target audiences will be able to work with Eye Rock to serve their advertisers based on known criteria. Because Eye Rock can reach a specialized market, the company is able to set ad rates higher ccompared to sites with a more general viewership. CPM (cost per thousand) for pre-roll video advertising commands a huge premium, and, has risen to between $25 and $50, depending on the property, brand and site. Eye Rock will offer combinations of pre-roll with interstitial (fly ins/bugs/ flash ads) and/or banner aadvertising, beginning at $76 cpm, based on retail pricing. According to analyst firm ABI Research, revenues from dynamically inserting targeted ads via video on demand or streaming video content will grow from $284 million this year to $1.8 billion by 2011. According to the latest research by eMarketer, U.S. online ad spending is set to grow 26.8% this year to $15.9 billion and to more than $21 billion in two years, surpassing $25 billion in 2010. That growth positions Internet ad spending to overtake radio for the first time in 2008. Rich media ads, including online video will double from a 9% share in 2006 to 18% in 2010.
BUILDING VIEWERSHIP
EyeRock Digital fully launched in late January 2007. It has been rapidly gaining viewers ever since. Eye Rock Digital has passed an important milestone by serving content to over 2 Million Visitors in March 2007. This is 120% over February, and over 400% since January 2007. With such results, top advertisers such as Virgin Mobile and Molson have signed on.
NGTV.COM
Intertainment recently announced an initiative with NGTV.COM (No Good TV) which gives them the right to insert advertising and marketing initiatives through internet and wireless platforms delivering uncensored celebrity-based programming – this network covers all genres of film, music and television and boasts a list of the hottest stars. Intertainment controls NGTV’s Canadian Rights for Internet and Wireless. The company has expansion opportunities in the United Kingdom, Australia, Asia and Pacific Rim.
YOUMENI.COM
Intertaiment Media also owns Youmeni.com, a user generated site. Similar to Youtube.com, visitors can upload content onto the site but unlike many competitors, the clips are monitored for content and description. The site is revenue driven with advertising and promotions such as contests to draw in the viewer. The site’s first campaign was a Clearly Canadian advertisement featuring a Steve Nash promotional video clip and contest.
A year in review and what's in store for '08 with Intertainment Media.