And we have another press release.
LOS ANGELES--(BUSINESS WIRE)--May 6, 1998--K-tel International Inc., (Nasdaq:KTEL), a leading marketer of entertainment products worldwide, and GRTV Network, one of the world's fastest growing direct response television networks, have entered into an exclusive agreement through which GRTV Network will air original, K-tel music-related direct response programming.
The announcement was jointly made Wednesday by K-tel President David Weiner and GRTV Network President and Chief Executive Officer Michael Wex.
Under terms of the agreement, beginning June 1998, GRTV will broadcast a daily half-hour music block designed to promote K-tel music products.
In addition to marketing existing K-tel music products to the consumer through traditional direct marketing methods, all K-tel programming broadcast on GRTV Network will promote "K-tel Express" (www.ktel.com), the company's new on-line music service which launched May 1. Additionally, during the initial three-month agreement, the two companies will evaluate possible co-marketing joint ventures together.
Since its formation in Jan. 1996, GRTV Network has contracted such major multiple station operators (MSOs) as Time Warner Cable, MediaOne Group and Cablevision Systems, currently reaching more than 35 million households throughout the United States. GRTV Network is also available 24 hours a day to all C-band satellite dish owners and DirecTV subscribers.
By year's end, GRTV projects it will broadcast programming to 45 million homes.
Regarding the announcement, Weiner stated, "This agreement allows K-tel to marry its rich history in marketing music products directly to the consumer through television with our aggressive expansion into direct marketing via the Internet. GRTV Network's reach is extraordinary, providing us with the valuable opportunity to strengthen our traditional marketing activities, as well as continue building our new endeavors."
Added Wex, "GRTV Network is actively striving to acquire original and successful direct response programming to further establish GRTV's proven ability to attract consumers. With the formation of this exclusive agreement with K-tel, GRTV will continue to expand the network with new programming formats, which can be applied to a variety of dayparts and in turn reach a larger market base for its program suppliers."
K-tel International is a vertically integrated developer, marketer and distributor of a wide array of entertainment and consumer products worldwide.
The company markets its product lines to retailers, wholesalers, distributors and licensees across the globe, or directly to the consumer via the Internet (www.ktel.com), television and other forms of direct response media. K-tel has active operations in the United States, Canada, the United Kingdom, Germany and Finland.
GRTV is a division of Guthy-Renker, a vertically integrated global electronic retailing company with annual revenues for 1997 in excess of $350 million. The company was founded in 1988 by Bill Guthy and Greg Renker, and is based in Palm Desert, Calif.
In 1997, Guthy-Renker won the NIMA Award for "Infomercial of the Year," the industry's equivalent to the Oscar Award for Best Picture, marking the fourth time in six years that the company has garnered the top honor. Guthy and Renker have been cited as among "America's Smartest Young Entrepreneurs" by Fortune magazine and received a regional Entrepreneur of the Year award from Inc. Magazine.
CONTACT: The Lippin Group/LA
Les Eisner, 213/965-1990
or
SSA Public Relations, Los Angeles
Steve Syatt/Chris Reichert, 818/501-0700
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