Sales
- Sales
The company will position itself as the licensor of intellectual property to national licensees, big advertising agencies or building operators or developers, and to strategic glass / glazing packaging plants in each specific country or region. The company will look at organising its own electro-optic system production in each region on a case by case basis.
The Company is planning to partner with the key market leader in each country or region to bring the product to market. The strategy would be not to limit the alliance to one major advertising company worldwide but to work with the strongest market maker in each of the main geographical areas or countries. The partner will have to be an outdoor integrated media company which owns and operates outdoor advertising sites, creates content according to the client requirements and sells site advertising time. Presentations have been made and technical and commercial follow ups are now required with:
World leading architectural firms including; Norman Foster and Partners, Asymptote, and others.
Global media groups including; G2, Omnicom and Newscorp.
Sales revenues will be derived from two sources:
Product licence fees, for example 10%, will be paid by the national or regional licensee when a ViGlazeTx system sale is made, based on the sales price per m2. Indicative sales price for the alternative Transparent Visual Digital Media systems range from U$D 1,500/m2 to U$D 15,000/ m2 per square meter depending on the viewing range and required resolution, the average being U$D 7,000 / m2, a figure used in the financial modelling.
Ongoing advertising service royalty fees, for example 5%, will be charged based on the income derived from the sale of advertising space or time. The sales price per m2 charged by the advertising agency can be anywhere from U$D3,000/m2 per month to U$D70,000/m2per month (Clear Channel published rates for digital billboard on Times Square, NY, USA). Conservatively a figure of U$D5,000/ m2 per month is used for the financial modelling as a base for a 5% royalty to be charges on advertising services.
The license fees and the sales price of the system will be defined together with licensees on a case by case basis.
In the first year the company is planning to produce four demonstration screens for potential partners in each major area (ME, EU, North America and Russia) while the electro-optic production line is being set up.
Distribution channels in which the ViGlazeTX business will consider partnering include leading global, regional and national businesses operating in the outdoor industry: Clear Channel Outdoor, JC Decaux Group, CBS Outdoor, Lamar Advertising Company, Titan Outdoor Limited, Van Wagner Communications, Planar Control Room and Digital Signage, EPAMEDIA, Market Forward, Omnivex Corporation, Primedia Outdoor Pty Ltd., and Clear Media Limited.
ViGlazeTx is now being offered to initial “flagship clients” and presented to strategic alliance partners to “shape the revenue powerhouse” by identifying at an early stage where the best value add (margin) and revenues can be achieved in the different areas where ViGlazeTx can be applied.
Through “leveraging big brother alliances”, i.e. the major outdoor advertising media businesses and glass producers such as ACG, as well as working with the industry’s leading developers, architects and engineers to the ViGlazeTx technology will be able to break into the digital visual out of home communications market by multiplying distribution channels and market penetration.