A Satellite Service That Delivers Tv Ads To Local Stations
Until recently, the fastest way for advertisers to deliver new commercials to TV stations was to mail packages of videotapes overnight. Now, there's something even faster and cheaper: Winnebago. Not those road yachts, though. Cycle Sat Inc., a subsidiary of Winnebago Industries Inc., is delivering commercials by bouncing them off a satellite to TV stations. There, a Cycle Sat box records the signals onto videotape automatically, saving work for technicians. The Cycle Sat system has been installed at more than 500 U. S. TV stations, the company claims. And in October, Cycle Sat agreed to license its technology to Telesat Canada, the national satellite operator. Big advertisers that use the system include Universal Pictures and Burger King Corp. TV stations pay just $1 a year to lease the Cycle Sat gear. The company makes its money by charging advertisers for transmission, typically $15 per spot per station when transmitting to 100 stations, says President Loren Swenson. Cycle Sat revenues doubled to $10 million in the year ended Aug. 31, and the company expects to turn a profit this year, Swenson says.
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