JSE-listed media giant Primedia will step up its investment in digital media channels in public spaces, through its new division, Prime 360 Media.
Following an initial R40 million commitment in July, the Primedia board recently approved a further R100 million investment, according to a stock exchange statement yesterday.
The total investment will allow for the deployment of 650 "units", or digital video interfaces, at public arenas such as airports, liquor and music stores, retailers and cinemas, where Primedia has secured exclusive advertising rights.
While ITWeb has been unable to reach any senior-level IT professionals involved in the project, the statement says satellite technology will be key to the establishment of the network. Infrastructure partners are not known at this stage.
Excellent returns
Primedia says the initial R40 million capital outlay was offset by a guaranteed R90 million in advertising revenue, leading the company to believe an additional R100 million is justified.
"The displays will run on a 20- to 30-minute cycle, which will also include live content from iafrica.com, covering sports, news, weather and exchange rates and entertainment from M-Net," explains the statement.
Prime 360 Media uses two types of digital display and plasma units: a 3D Media Unit, and a 360 Display Unit, which it says "provides advertisers with a genuine colour multimedia display integrating video, audio, computer graphics and posters".
Digital advertising environment
"The inspiration behind Prime 360 Media was driven by the desire to offer advertisers, who are faced with increased audience fragmentation, a very innovative advertising channel, operating at point of purchase, within the digital advertising environment," Prime 360 Media MD Elmarie Pretorius is quoted as saying.
In July, Primedia acquired a 50% stake in Merchint (which specialises in broadcast and narrowcast digital media technology), from Barrows Design and Manufacture.
"Due to the nature of the business conducted by both Merchint and Prime 360 Media, Merchint's shareholders deemed the ongoing roll-out of Prime 360 Media as a potential area of conflict and mutually agreed to reverse the transaction. The R25 million paid by Primedia will consequently be refunded," adds yesterday's statement to the JSE.
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