Imagination TV Inc. (IMTV)

[HollywoodFastLane]

In the 3rd quarter of 2012, IC Places acquired the broadcast assets of Punch TV Network. The move on the surface may have been seen as another leap forward for IC Places’ Distribution Network, adding another form of contact. But, for the management of IC Places, we saw it as much more. Combining our Out-of-home Distribution Network with that of a Broadcast TV Network created a paradigm shift in the value and purpose of our Distribution Network.

Over the last seven years, IC Places has built a Distribution Network that places our shows in front of 300+ million people a month. This massive viewership comes from a combination of our 350 City websites and partner websites. It includes our contracts with PRN for the Restaurant Network, HD Walls, Check out TV and from our latest four year contract with connectiVISION, which places us in the ClearVision airport network and waiting areas of Hospitals, Doctor’s offices, Clinics and Care Centers across the country.

When IC Places acquired the broadcast TV assets, the base Distribution Network grew from a slowly growing revenue source to a profitable marketing arm for the newly acquired Punch TV Network. This strategic shift in purpose has put greater value on the core assets of our Distribution Network.

A story in Media Post yesterday, tells us that TV network’s will spend roughly the equivalent of $4.5 billion in TV promos -- with the majority of that messaging coming from its own network airwaves. This is based on a recent Nielsen report. The article goes on to state... “$4 billion -- comes from running its new season TV promos on its own network airwaves. Roughly 9.3% comes from cross-channel promotion via broadcast networks' sister cable channels. That comes to around $300 million. In addition, 2.4% comes from pay-TV efforts on other networks -- around $100 million.”

See the entire Media Post story at: http://www.mediapost.com/publications/article/182440/tv-nets-spend-billi...

We are all aware of a TV pioneer who recently started a cable TV network only to flounder. The question many never asked is “Why?”. If you really think about it, did you know what channel her network was on in your city, and, did you know any of the shows on her network? No matter how majestic the tree is, if it falls in the woods and nobody is around it does not make a sound.

National broadcasters and cable networks will spend billions this fall to make a sound. IC Places upon the Punch TV acquisition turned its current Distribution Network into one of the world’s largest soap boxes with 300 million pairs of eye’s that engage in our content across the platform and outside of the Punch TV broadcast signal.

In the Media Post article it states... “It’s key to consider promoting off your own network, instead looking to sister networks or online for valuable opportunities to engage with consumers,” stated Justin Rosen, director of media analytics at Nielsen. “Cross-channel platforms may create opportunities to engage not just loyal, regular viewers, but to capture new viewers.” IC Places is doing this right now.

NBC, CBS, ABC, Fox and others have also seen the light. They recently joined IC Places and others in content partnerships with ClearVision Airport Television to deliver programing for a revolutionary new type of television network. One that exists completely out of the home. ClearVision Airport Television is being built by the people at ConnectiVision and in partnership with Clear Channel Outdoor, a subsidiary of the giant media company Clear Channel Communications. This is a game changer in that it is a true Television Network, which will be based in 240 airports across America.

In a recent press release, David Tetreault, Chief Marketing Officer at connectiVISION said, "Our goal is to provide travelers--especially frequent business travelers--a diverse, 20-hour-a-day programming lineup of top network shows, news, weather, and sports, while enabling airports to deliver a customized TV station with local flare and programming. This unique Away-From-Home television solution is the first of its kind to provide premium programming designed to target, reach and engage a world on-the-go."

ClearVision Airport Television, and the other arms of IC Places Distribution Network, will save the company millions of dollars that it would have needed to create opportunities to engage not just loyal, regular viewers, but to capture new viewers. In the process, the Distribution Network will become an incredible revenue source as the networks we have partnered with grow and expand.

This fundamental paradigm shift, in both form and function of the IC Places Distribution Network, will be the catalyst which will help grow the company as a whole into a major force in both in-home and out-of-home entertainment.