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Gold's Gym and ClubCom Announce Formation of the Gold's Gym Broadcasting Network

One of the Largest Private TV Networks in the US

FALLS CHURCH, VA. AND VENICE, CA. (JUNE 18, 2000) - Gold's Gym International, Inc., the world's largest chain of health clubs with over 540 locations and over 200 million annual visits, and ClubCom, Inc., a pioneer in television microcasting, announced today the formation of the "Gold's Gym Broadcasting Network", a cooperative venture that will represent one of the largest private television networks in the United States.

The network, launching this fall, will bring customized ambient entertainment to approximately 2 million Gold's Gym members through a closed circuit entertainment network. The network utilizes ClubCom's patent-pending "microcast" technologies enabling each Gold's Gym facility to completely customize its entertainment on an hour-by-hour basis. Selecting from one of the world's largest music video libraries, individual facilities categorically define the type of music video entertainment played at different times of the day based upon the preferences of its membership base. ClubCom's proprietary process even provides Gold's Gym members the opportunity to define their
preferences via the Internet and provide input back to facility operators.

"The integration of ClubCom's revolutionary technologies and entertainment programming into our network reinforces our commitment to provide the best member experience possible," states John Galiani, President of Corporate Development for Gold's Gym International. "It's reflective of our dedication to the advancement of the health club industry and the success of our franchisees."

The network also empowers each Gold's Gym facility with ClubCom's patent-pending internal advertising programs that enable facility operators to activate their own promotional television commercials via the Internet and broadcast them within their respective facilities.

"Individual Gold's Gym facilities are provided the opportunity to drive profit centers, enhance member retention and promote member referral programs. It's like having an Internet integrated advertising agency, production studio and broadcasting network always available at your fingertips - at any time, from anywhere," explains Jeff Esswein, ClubCom's Vice President of Business Development. "We're in the business of constructing and operating customized television networks for our customers and providing them with services that were never before available."

The venture also positions Gold's Gym operators to earn significant advertising revenues through high quality advertisements targeting a significantly pre-qualified audience. Facilities earn commissions through advertisements broadcast over the network.

"Overall, the network will generate approximately four billion, highly qualified television advertising impressions per year," states Matt Hamill, ClubCom's Vice President of National Advertising Sales. "It presents a significant advertising opportunity for advertisers who want to place their products in front of high income, focused decision makers - while reaching these consumers during a heightened state-of-awareness due to the endorphins released during exercise."

"Our franchise owners and their members will benefit from this network partnership," states Kirk Galiani, Chief Executive Officer of Gold's Gym International. "Franchise owners can promote and up-sell their existing services and enhance the member experience all while earning significant advertising revenues. Our members can now enjoy an overall ambient entertainment environment that is tailored to their preferences."

"We're fortunate to be associated with the powerful mystique of Gold's Gym and the world class organization of people driving it into the future," states Tom Lapcevic, Chief Executive Officer of ClubCom. "The potential of the Gold's Gym Broadcasting Network is phenomenal."