VIDEOFLICKS.COM INC ("VFCO.U-Z") THOMSON CORP ("TOC-TM") - Videoflicks.com Inc. Signs Strategic Comarketing Agreement - With Thomson Target Media Linking Popular Marketing Portal
Videoflicks announced the singing of a co-marketing agreement with Thomson Target Media "TTM" that links Videoflicks popular website to Thomson's popular Weekly entertainment section Coverstory. Thomson Newspapers publishes 60 newspapers including Canada's largest newspaper The Globe & Mail. The agreement was announced by Thomson as follows:
COVERSTORY AND VIDEOFLICKS.COM INK REVENUE-SHARING DEAL
New e-commerce model boosts traffic to Videoflicks.com and shares video sales revenues with newspapers using Coverstory's new Web sections
For Immediate Release October 4, 1999
CHICAGO - Thomson Target Media's weekly entertainment newspaper section Coverstory and online video retailer Videoflicks.com announced a co-marketing alliance. The deal employs a first-of-its-kind revenue-sharing model that splits profits from online video sales with newspapers' Web sites.
The agreement brings Videoflicks.com's film expertise and unsurpassed customer service to an ideal audience - Coverstory's readership of more than 6 million entertainment news consumers. The plan creates new revenue streams for newspapers that incorporate Coverstory's localized Web editions, called Web modules, into their own online editions.
"Coverstory now provides e-commerce revenues to its publishing partners at virtually no cost, while giving readers a one-stop online resource for objective entertainment news and video purchases," said Dan Uslan, group publisher of Thomson Target Media.
Under the revenue-sharing model, a percentage of gross margins on online video sales is paid to a participating newspaper whenever a video purchase originates from that newspaper's online edition.
The deal with Coverstory is part of Videoflicks.com's plan to increase its online revenues by 500 percent over the next twelve months. Online revenue sharing starts in November 1999.
"Our agreement with Coverstory is part of a growing trend of boosting online revenues through affiliate partnerships and sponsorships, rather than traditional banner advertising," said Michael Kavanagh, founder and CEO of Videoflicks. "We're tapping into a built-in readership of Web savvy consumers who demand film expertise when they make purchases online."
The alliance also includes ongoing marketing activities, including reader promotions sponsored by Videoflicks.com and weekly listings of Videoflicks.com's top-selling videos in Coverstory's print edition and on its Web modules.
About Coverstory
Coverstory is part of Thomson Target Media, which pioneers new and effective ways to meet the needs of readers, local media partners and advertisers. TTM produces 11 different products under the four topical areas of kids and families; entertainment; health and fitness; and professional sports. Combined, these products reach more than 16 million households each month.
Thomson Target Media is part of Thomson Newspapers, which serves 21 national and regional markets in the United States and Canada. A marketing and communications company and publisher of 55 daily newspapers, Thomson Newspapers is one of the main operating units of the Thomson Corporation. TTC is a world leader in the information sector with approximately 40,000 employees and annual revenues of $6 billion U.S. TTC's common shares are traded on the Toronto, Montreal and London stock exchanges.
About Videoflicks.com
Since its launch in 1995 as the world's first online video store, Videoflicks.com has compiled enviable growth and recognition. The site receives more than 20 million hits, 4 million page views and more than one million unique visitors monthly. Videoflicks.com focuses on customer service, knowledgeable staff, fast delivery and reasonable prices. The company's representatives are primarily film/video experts, enhancing service to the online buyer. Videoflicks.com offers more than 100,000 movie titles and has served customers in 60 countries.
This announcement contains forward-looking statements that involve risks and uncertainties that include, among others, Videoflicks.com's limited operating history, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, seasonality, consumer trends, competition, risks of system interruption, management of potential growth, risks related to auction services, and risks of new business areas, international expansion, business combinations, and strategic alliances. More information about factors that potentially could affect Videoflicks.com's financial results is included in Videoflicks.com's filings with the Securities and Exchange Commission, including its Form 20F.
Videoflicks.com Inc has 17,808,955 common shares outstanding. TEL: 905-459-5471 Michael Kavanagh, President FAX: 905-459-4343 Videoflicks.com Inc. Internet: www.videoflicks.com |
