Stock4Services Offers Solution for Newspaper Revenue Freefall
Innovative Services Offer Low Risk Opportunity for Newspapers to Gain Equity in Start-ups by Leveraging Unrealized Advertising Space
NEW YORK, Dec. 15, 2014 /PRNewswire/ -- Stock4Services, a New York company, unveiled a new solution designed to help boost the revenues of publishers while offering emerging companies an alternative way to acquire brand identity through advertising.
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According to the Newspaper Association of America, the revenue of newspapers has fallen by almost 50% since it peaked at $60.2 billion in 2005. This has led to widespread layoffs, the closing of bureaus, and a greater reliance on wire reports. With almost $30 billion worth of unsold advertising inventory available for investment in emerging growth companies, publishers may achieve great increases in their revenues.
Stock4Services.com facilitates a mutually beneficial relationship between cutting-edge start-ups and newspaper publishers. For publishers, the company offers the opportunity to receive equity in exchange for services such as advertising, enabling them to profit from excess advertising capacity that may otherwise go unused. For emerging companies, Stock4Services offers an alternative way to acquire advertising necessary to establish marketplace position and brand identify without depleting limited financial resources in the early stages of business.
Stock4Services model is based on recent successful transactions between then emerging companies and service providers such as artists, actors and musicians:
- In 2005, a graffiti artist accepted stock in lieu of a payment for painting the walls of Facebook's new offices. In 2013, his stock was worth $500 million dollars.
- In 2004 rapper 50 Cent accepted Glaceau stock for endorsing its Vitaminwater brand. He cashed in over $100 million after taxes, when Coca-Cola purchased Glaceau 3 years later.
- The value of the stock actor William Shatner received for appearing in Priceline commercials peaked at $600 million.
"Publishers and broadcasters may become major venture capital players," says Alex Konanykhin, CEO of Stock4Services. "The marginal cost of ad space is low, so the return on investment for publishers can be far greater than for VC firms or investment banks. To put it simply, if a graffiti artist could make half a billion dollars on a $60,000 worth of services, there's no reason publishers cannot make billions by intelligently investing their unsold advertising inventory," he added.
Stock4Services sources promising companies through a careful selection process that considers the strength of management, growing revenues, and respected investors already on board the company. Publishers can then select from its curated pool of companies, safe in the knowledge that they are likely to deliver high returns.
Stock4Services staff cultivates a pool of companies with strong management, growing revenues, and respected investors already on board; companies which are likely to deliver high returns. Stock4Services does not bill for its research; instead it only gets a standard 15% agency commission in the same stock as the publisher, so Stock4Services only earns money when the investment succeeds.
Stock4Services also facilitates investments for online and outdoor media, trade shows, PR and IT firms, and other service providers.
Contact:
Brian Franklin
[email protected]
703-201-3875
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SOURCE Stock4Services
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