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 with eDiets.com
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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