New Frontier Media Inc. F1Q10 (Qtr End 06/30/09) Earnings Call Transcript

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2009-08-07 13:04:20.0

Tags: Advertisement, Affiliate, Call Transcript, Earnings, New Frontier Media Inc., Marketing Research, Marketing, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Our first question comes from Eric Wold with Merriman Curhan Ford. Please go ahead.

Eric Wold - Merriman Curhan Ford

Just a quick question on the last comments talking about the marketing dollars would be spent in the Transactional TV space. Can you give a sense of how much was spent by you in the quarter and then versus year-over-year kind of what areas, where you are targeting that spend and then what is the mix of spend versus, what is on your plate versus what is on the MSOs plate?

Grant Williams

Sure. This is Grant. I will take a portion of that one. The majority of the increase in the operating expenses with the Transactional TV business really relate to specifically the advertising and promotional costs. There is really not much else in that number. So, that was up approximately $0.3 million.

As compared to the same prior year quarter, we frankly didn’t have much in a way of marketing and advertising cost is, we kind of seen the falloff somewhat in the domestic TV revenue, within that business segment we really try to focus on other ways to drive revenue growth there, and one of the ways is through advertising and marketing across variety of different platforms.

Michael Weiner

Some of the tactics that we have employed are cross-channel advertising. We have launched our new series of cross-channel spots. These are commercial that run on channels like Spike, ESPN, USA Network, Tele-Network Television.

We have increased the number of affiliates running cross-channels dramatically, over 2000 affiliates, which addressed by 25 million network households and that number continuous to grow. We've executed on a number of direct mail campaigns, web advertising campaigns in association directly with our affiliates, as well as in-market promotions. For instance, most recently we partnered with Time Warner Cable of New York to sponsor the Siren music festival on Coney Island.

Eric Wold - Merriman Curhan Ford

Okay and just when you think about the spending on the marketing plans, do you work with cable operators and come up to some agreement, not [very good] numbers now, but they cover X%, you cover X%, or kind of just [toll] your decision on your own incremental, what they many be spending?

Michael Weiner

Everything we do is in partnership with our affiliates directly and most times on a shared cost basis, and we also are very diligent in implementing measurement tool so that we can see what the effect of this advertising is, on the market, where we execute.

 
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    Venunye

    09/06/09 | Report as spam

    RE: New Frontier Media Inc. F1Q10 (Qtr End 06/30/09) Earnings Call Transcript

    Please i will like to know what the negotiating procedures are to enroll for affiliation outside the box ( internationally)

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