Category Leaders in Location-Based Media and Captive TV Join Forces in New Venture Providing Scale for Marketers
Danoo, a leading digital location-based media network with interactive video screens in popular retail locations, has acquired IdeaCast, the leading provider of advertising in the rapidly expanding captive television category. This combination creates one of the largest and most advanced media platforms in the location-based media space. As part of the transaction, National CineMedia, LLC (NCM), operator of the largest digital cinema network in North America for cinema advertising, alternative entertainment and events, and Kleiner Perkins Caufield & Byers (KPCB), a leading venture capital firm with a rich history of building entrepreneurial investments into successful enterprises, will each hold a minority interest in the new company. The assets acquired by Danoo had been previously acquired by NCM from the original IdeaCast entity. The new Danoo corporate entity will continue to operate and sell advertising across its digital media networks under the Danoo and IdeaCast brands.
Danoo and IdeaCast have exclusive contracts to present content and advertising in thousands of high traffic and extended dwell time venues, including top-tier health clubs, airport newsstands, seatback TVs on JetBlue, Frontier and Continental Airlines, and a dense concentration of coffeehouses, upscale delis and cafes in the top U.S. media markets. The arrangement unites the best location-based media opportunities with leading technology, such as transparent ad insertion, IP-based geo-targeting, mobile interactivity, digital content distribution and dynamic content localization. The new entity provides advertisers and marketers an unprecedented platform to reach the elusive upscale mobile professional underserved by traditional media such as television.
In making the announcement, Aileen Lee, Danoo CEO said, “We’re thrilled about this strategic combination of our talented teams and the broad array of world-class partnerships supporting us. IdeaCast is a company with incredible momentum and we believe its Captive TV proposition represents one of the most compelling advertising opportunities for marketers looking to engage their increasingly on-the-go consumer base. The addition of IdeaCast’s networks allows Danoo to offer advertisers deep nationwide scale along with the ability to bring relevant digital media to a desirable, consistent audience at key points in their day. With industry leading investors like NCM, the country’s leader in digital cinema media and KPCB, who have helped scale entrepreneurial ventures like Amazon, Netscape and Google, Danoo is in a terrific position to build a new type of digital media opportunity.”
Kurt Hall, NCM CEO added, “This transaction furthers our original IdeaCast investment strategy to create a location-based media incubator that may one day provide an additional growth engine for NCM. This new, larger unique platform will offer media buyers the combination of nationwide reach and the ability to narrowly target messages to specific geographic locations.
As location-based digital media is still overly fragmented, this combination is an important step in our effort to bring greater national reach and more standardized buying metrics to the media community.”
Danoo is a leading digital out-of-home network that delivers relevant, localized digital media as part of people’s daily rituals. Danoo’s web-connected, interactive screens captivate people in a handpicked network of their favorite break places (coffeehouses, upscale delis and cafes) in more than 850 locations in the top media markets. When people are watching a Danoo screen, national and local advertisers on the network have a uniquely efficient opportunity to reach the affluent, active and hard-to-reach “Coffeehouse Generation” in an environment uncluttered by other media.
Danoo was founded in 2006 with the vision of helping people better connect with the world around them by revolutionizing the way people experience media away from home. Danoo is backed by Kleiner Perkins Caufield & Byers, a leading venture capital firm and is led by a management team of industry veterans from a variety of successful media, technology, and consumer goods companies. For more information, please visit www.danoo.com.
About IdeaCast, Inc.
IdeaCast Inc. is the leading provider of custom video content and advertising in the expanding away from home television category. IdeaCast TV networks include Airline TV, Health Club TV and soon to be added hotels. Airline TV provides advertising and branded content on Continental Airlines, JetBlue Airways® and Frontier Airlines. Through agreements with content partners CNN, CNBC, MSNBC and E! Entertainment Television, Health Club TV inserts custom advertising into the live program feed, delivering a uniquely targeted experience of sight, sound and motion to health club members. IdeaCast is contracted with Nielsen Media Research for audience measurement and verification. For additional information, visit www.IdeaCast.net
About Kleiner Perkins Caufield & Byers
Since its founding in 1972, Kleiner Perkins Caufield & Byers has backed entrepreneurs in over 600 ventures, including AOL, Amazon.com, Citrix, Compaq Computer, Electronic Arts, Genentech, Genomic Health, Google, Intuit, Juniper Networks, Netscape, Lotus, Sun Microsystems, Symantec, Verisign and Xilinx. KPCB portfolio companies employ more than 250,000 people. More than150 of the firm’s portfolio companies have gone public. Many other ventures have achieved success through mergers and acquisitions. The firm has offices in Menlo Park, California; Beijing, China; and Shanghai, China. For additional information, visit www.kpcb.com.
About National CineMedia
National CineMedia (NCM) LLC operates the largest digital in-theater network in North America through long-term agreements with its founding members, AMC Entertainment Inc., Cinemark Holdings, Inc. (NYSE: CNK) and Regal Entertainment Group (NYSE: RGC), the three largest theater operators in the U.S., and through multi-year agreements with several other theater operators. NCM LLC produces and distributes its FirstLook pre feature program; cinema, lobby, and online advertising products; comprehensive meeting and event services and other entertainment programming content. NCM LLC’s national network includes approximately 16,800 screens of which approximately 15,600 are part of the company’s Digital Content Network (DCN). NCM LLC’s network covers 171 Designated Market Areas(R) (49 of the top 50). During 2008, approximately 660 million patrons attended movies shown in theaters currently included in the network (excluding Consolidated Theatres). National CineMedia, Inc. (NASDAQ: NCMI) owns a 41.5% interest in and is the managing member of NCM LLC. For additional information, visit www.ncm.com.