Bangkok Thailand (PRWEB) December 26, 2006
On the corporate side, business innovations are brewing, and one example of what's happening with patented technology is the emergence of the out-of-home television advertising network.
"Today there are two companies using our technology, the Shanghai-based Focus Media of China and Net Net Net TV of Europe," said Ronald Flynn the founder of Global Satellite Broadcasting Corporation. Going beyond traditional venues of television, billboards and print media, Focus Media using GSBC worldwide patented technology has hit gold with a new advertising model for China: reach Office workers and upscale consumers by running continuous television ads on digital displays in the high-traffic buildings and retail outlets that they frequent, Flynn said. The model is not new but the technology is. The model, however, has not yet caught on in America. GSBC will now launch this technology for the entire universe, according to Flynn.
The twist to the model in China has been Focus Media China has been using the smart screen technology for a few years and has built a huge infrastructure from patented technology that they don't own, he added. "As a matter of fact, the inventor Steven Tung sold the technology in March 2006 to Global Satellite Broadcasting Corporation. Since that purchase by GSBC, no other company other than Net.Net Net TV located in Europe has been licensed to use this technology," Flynn said.
Net Net Net TV paid for the license in 43 major European countries, he added. Net Net Net TV has started trading on the American exchange under the symbol (NNNV.PK) and after the New Year will begin trading on the Dax in Germany, Flynn said. Focus Media, in June debuted on the NASDAQ and is trading at almost 70 dollars per share. As of January 1st 2007 GSBC will require any company using the smart screen patented technology to pay a licensing fee, Flynn said.
FMCN purchased its rival Target Media for cash and stock, making them the largest media company in China. Making money has never been so easy with this model. "It is very easy; you simply sell advertising time using GSBC smart screen technology allowing the advertiser to sell their product by placing their ads in the available 1200 30 second time slots," Flynn said.
Focus Media now has more than 35,000 displays in its network covering more than 35 cities. In August, the company reported second quarter sales of US$14.6 million, a 128% year-on-year gain, Flynn said. The total number of 30-second ad slots sold on Focus Media's commercial location network in the second quarter was 3,057, with average advertising revenue per time slot (ASP) of US$4,573, versus 832 time slots and an ASP of $6,607 for the same period last year, and 1,998 time slots and an ASP of US$4,721 for the previous quarter.
Companies like Focus Media and Target Media can thrive in the digital signage advertising business only if GSBC allows them to use the patented smart screen technology, Flynn said. "The real question for investors who have bought their stock is "will GSBC let them license the technology."
What's next for Focus Media? With GSBC going public in America what will the institutional investors do? Where will stock investors put their money? And what will happen to the price of FMCN stock, Flynn asked. GSBC is launching the same business model on a global scale and the model is no different then what is already being used by FMCN. There is no secret about the business model.
GSBC model is compelling because of the budding advertising market. "China's ad market is not efficient and is still evolving. There's a lot of wasted money and advertisers are not reaching their market, because newspapers, billboards, televisions are oversaturated," Flynn said.
"The real answer lies in real estate and the smart screen technology and how it is rolled out globally. GSBC will be public before the New Year and will take the world markets by storm. Stay tuned for more information about GSBC by going to its web site at http://www.gsbc.tv or to its strategic alliance partner web site at http://www.netnetnet.tv. Obviously, there is much more to come," he said.