(Press Release) March 8, 2000PRIMEDIA's (NYSE: PRM) business-to-business Internet company, IndustryClick, announced today that it has acquired a significant equity position as part of a relationship with Digital Media Online, of Santa Ana, Calif., which operates the leading Web sites for digital media productionincluding DigitalMediaNet.com, DigitalWebCast.com and DigitalProducer.com. Under the agreement, IndustryClick invested $14 million in promotion, licensing and cash in Digital Media Online.
"We are moving aggressively to establish B2B vertical online communities that join our rich editorial content with commerce in solidly growing industries," said Tom Rogers, chairman and chief executive officer of PRIMEDIA. "PRIMEDIA is on its way to being a major player in the B2B Internet marketplace."
As part of the agreement, PRIMEDIA will be the leading investor in the market-leading vertical B2B hub covering the digital production industry. Digital Media Online will license content from seven industry-leading entertainment technology publications that reach nearly one million decision-making professionals owned by PRIMEDIA's Intertec Publishing including Millimeter, Mix, Video Systems, Broadcast Engineering, World Broadcast Engineering, BE Radio and Sound and Video Contractor.
The relationship also provides that PRIMEDIA will build out fully-featured e-commerce functionality across Digital Media Online's 23 market hubs using technology from IndustryClick's Digibid.com, a real-time interactive auction site specializing in the sale of professional broadcast, audio, video, music, recording and lighting equipment.
"In the rapidly changing and constantly developing B2B online environment, it is increasingly important to move quickly and this development is key to IndustryClick's rapid growth," said Timothy Andrews, president and chief executive officer of IndustryClick. "Our combination of sharing content, sales force, and cross-promotion is the right mix that will really move our B2B online communities to leadership status. There will certainly be a quickened pace in activities of this kind from IndustryClick."
PRIMEDIA's IndustryClick, a business-to-business Internet company, builds and operates B2B vertical online communities serving niche industries including B2B e-commerce with Digibid (www.digibid.com), media with Media Central (www.mediacentral.com), marketing with MarketingClick (www.marketingclick.com), agribusiness with AgriClick (www.agriclick.com), telecommunications with TelecomClick (www.telecomclick.com), and promotions with PromoXchange (www.promoxchange.com) and has several other vertical online communities planned for introduction (under development).
Digital Media Online, the market leader in the high-growth digital production category of entertainment technology, is comprised of 23 vertical communities for producers of digital media including film, broadcast, DVD, CAD, design, animation, audio and game development. Users receive access to industry news, product and technical information as well as digital media specific e-commerce. Broadband webcasts and emailed newsletters focused on developments within digital media niches such as DVD and streaming media are available to visitors. User sessions for these rapidly growing communities increased steadily through 1999 from 73,000 a month to more than 450,000 sessions in February 2000 and more than 1,500,000 pages delivered.
"This partnership with IndustryClick reinforces Digital Media Online's first mover position of leadership in the digital media marketplace. As the leading daily online resource for digital media professionals, we maintain a team of industry professionals working behind the scenes to supply our community members with the latest content, community news and resources. The teams at PRIMEDIA, IndustryClick and Intertec add significantly to our assets and we look forward to expanding on our mutual strengths in the marketplace," said Lou Wallace, chief executive officer and founder of Digital Media Online.
Andrews; Cameron Bishop, CEO of Intertec Publishing; and Philip Berg, vice president of IndustryClick will join Digital Media Online Founders Lou Wallace, CEO, and Michael Skerly, president; John Wilczak, chairman of iBenefits.com; and Jeff Edson, CEO of Quantum 3D as members of the Digital Media Online new board of directors.
PRIMEDIA Inc., with 1999 sales of $1.7 billion, is a targeted media company with print, video and Internet businesses focused on consumer and business-to-business audiences. Some key businesses include Seventeen, New York, Chicago, Fly Fisherman, Channel One Network and 16 other specialty satellite television and TV distribution services, Horticulture, Modern Bride, American Baby, IntelliChoice, Telephony, American Demographics and Films for the Humanities & Sciences. The Company owns and operates more than 215 Web sites and other Internet properties.
This release contains certain forward-looking statements concerning PRIMEDIA's operations, economic performance and financial condition. These statements are based upon a number of assumptions and estimates, which are inherently subject to uncertainties and contingencies, many of which are beyond the control of the Company, and reflect future business decisions, which are subject to change. Some of these assumptions may not materialize, and unanticipated events will occur which can affect the Company's results.
Media: Joanne Lasky
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