EmergingGrowth.com Reports on As Seen on TV, Positioned for Growth With
MIAMI, Florida, January 15, 2013
MIAMI, Florida, January 15, 2013 /PRNewswire/ --
EmergingGrowth.com, a leading digital financial media company, Reports on the
As Seen on TV, eDiets.com Merger. The discussion also Includes, Nutrisystem,
Weight Watchers, HSN Inc., ValueVision Media, and Medifast, Inc.
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As Seen on TV (OTCBB: ASTV) is a direct marketing company that identifies,
develops, and markets consumer products for global distribution. The
company's primary distribution channels are TV, Internet, and retail.
As Seen on TV is the creation of Kevin Harrington, a pioneer of the
infomercial industry and one of the original investors on the ABC television
series Shark Tank . Harrington created ASTV to capitalize off the experience
of its management team. Combined, it's been responsible for over 500
infomercials with revenues of more than $4 billion.
In a nutshell, inventors submit products for ASTV to review. If the product
has potential, the company obtains the marketing and distribution rights with
the inventor receiving royalties. The product is then marketed using direct
response sales (such as infomercials), live-shop TV venues QVC, HSN, Inc.,
(NASDAQ: HSNI), and a web based outlet for the company, AsSeenOnTV.com
ASTV, with its huge amount of expertise, has the ability to generate buzz
around just about any kind of product. However, some products are better than
others for truly capturing the attention of the consumer.
That's exactly why the company recently entered into an agreement to merge
eDiets.com develops internet-based diet and fitness programs to consumers and
businesses. The company offers digital subscription-based plans according to
an individual's weight goals, food, and cooking preferences. Plus, it
provides weight loss oriented meal delivery services, along with interactive
online information, communities, and message boards.
eDiet's weight-loss programs are advantageous to consumers due to their
personalized nature. Essentially, the company offers end-to-end nutrition
solutions strategically tailored to meet specific goals for its customers.
Here's the thing...
Despite the popularity of weight loss programs, eDiets hasn't been able to
reach the heights of competitors such as Nutrisystem (NASDAQ: NTRI) or Weight
Watchers (NYSE: WTW). A large part of the company's issues were related to
marketing. eDiet has traditionally focused on print media, short-form TV
spots, and the Internet to gain customers.
In the end result, some of the company's immediate competitors are ValueVision
Media (NASDAQ: VVTV) and MediFast (NYSE: MED).
And while the official closing of the merger won't occur until sometime in the
first quarter of 2013, the companies wasted no time in getting started on an
aggressive ad campaign. In fact, ASTV and eDiet struck an agreement with
famous musician CeeLo Green ( The Voice ) to endorse the eDiets personalized
weight loss plans.
Green will receive an initial fee and warrants to purchase shares of ASTV.
The license agreement is for two years, meaning CeeLo is incentivized to
promote the product as much as possible during the time frame.
Make no mistake; this is a huge deal for both ASTV and eDiet. The new,
combined company has the potential to produce explosive results. Just look at
Nutrisystem and its $400 million in revenue. Or, consider Weight Watcher's
$1.8 billion in revenue to get an idea of how huge the potential market is for
weight loss products.
Moreover, ASTV has quite a bit more to offer in terms of products. After all,
a company like HSN has over $3 billion in sales. Clearly, there's a huge
market for direct-marketed products and services.
ASTV's merger with eDiet is a great fit for both companies and could very well
result in a breakthrough. Even better, it could be just the tip of the
iceberg for what's possible down the road.
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