Gamestop (GME) is partnering with CBS Outernet + Reflect Systems to provide most of its retail locations a New IN-STORE Digital TV Video Network/Channel, Gamestop TV :*The high definition GameStop TV channel will feature product promotions, game previews, developer interviews and other customized content, as well as ADVERTISING targeted to GameStop's 73 million monthly shoppers
*The rollout is targetting 4,000 GME stores and is set to complete sometime during 2009
Per Gamestop's Senior Vice President of Marketing, Mike Hogan: "GameStop is gaining more brand traction every year, and part of our success is creating a fun, exciting store environment where our customers like to hang out...The digital GameStop TV network will add a new dimension of excitement and community to our locations, while at the same time providing excellent opportunities for advertisers."
*CBS Outernet --> will manage advertising sales + provide custom programming to the network each month, including content from CBS Television, CBS College Sports, Last.fm and other CBS Corporation properties.
*Reflect Systems --> will manage network technology and operations
http://phx.corporate-ir.net/phoenix.zhtml?c=130125&p=irol-newsArticle&ID=1163256&highlight=
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*Anecdotally, I believe this is a positive development for Gamestop as it sounds like they just created a new earnings stream for themselves (as with advertising comes money, just ask Google/GOOG). That said, I'm skeptical about GME's true television ad growth potential and how significant + sustainable those profits could become as a percentage to their overall bottom line (net income/profit). Profits aside, GME also seems to be making a good fundamental 'customer-centric' decision here...a tricked out in-store high definition video game network should ultimately keep core customers (18-34 year old males) in stores longer.
Data Courtesy: Gamestop Press Release
Full Disclosure: I own shares of GME and GOOG.
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