Introduction

Never before has technology change come as quickly as the in the digital media industry. In less than half the time it took television to go from black and white to color, digital technology has converted the next generation of televisions and informational displays.

Activision.TV is a technology company that designs, manufactures, licenses and markets digital flat panel display systems for the hospitality, retail and government markets. Utilizing its patented technology, Activision.TV provides a competitively priced digital Computer Integrated Television (CIT). Activision.TV also offers Digital Media Delivery Systems (DMDS) for use in a wide variety of applications in both the narrowcasting point of purchase (POP) and broadcast (HDTV) markets. Dynamic video and advertising messages can be transmitted digitally to locations anywhere in the world, can be changed in minutes, and varied by location and time of day according to preferences set by the user.

The Digital Transformation

Broadcasting involves the transmission of signals over the air, by cable and satellite, with the intention of covering a large geographic area. The Federal Telecommunications Act of 1996 mandated that by February 17, 2009, all broadcast signals will be digital instead of the current analog signals sent today. Activision.TV has targeted the hotel/hospitality industry as a priority market for its products and services since most hotels and resorts will now need to begin replacing their old CRT type TV’s with modern digital Plasma or LCD systems.

Studies show there are over 2 million hotel rooms in the United States today. Of that number, ten percent (10%) or over 200,000 rooms are being renovated each year in addition to over 100,000 new rooms being added to that inventory. Activision.TV feels that it has a strong marketing position in the Broadcast industry because of its patented Computer Integrated Television (CIT), its Works-in-a-Box (WIB) modular computer component and its Digital Media Delivery System (DMDS) systems which provide a turnkey solution for narrowcast networks.

By next year, 2007, the digital flat panel display market is projected to have combined sales in excess of $88 Billion and reach an amazing 116 million units sold by 2015. There is a large demand for LCD and Plasma displays (PDP) for the Narrowcasting market; i.e. digital delivery of visual content through a centrally managed network of displays. Narrowcasting is vastly superior to static point-of-purchase (POP) displays because it delivers timely and locally targeted advertising / messages at a low cost. Multiple ads can play on a single display and content management can be digitally controlled from a central location, ensuring consistent messages and timely execution to an unlimited number of locations.

Hoteliers, retailers, and brand marketers all understand that customers respond to on-site marketing. A recent study by the Point of Purchase Advertising Institute (POPAI) noted that over 70% of all purchase decisions are made at the point of purchase, with over 60% of those being spontaneous. More effective POP advertising will directly result in higher sales and profit margins. Narrowcasting is particularly valuable to the hotel, retail, trade show, public venue, casino, transportation, restaurant and sports bar, and consumer packaged goods industries.

Technology Leader

Any time a new industry is launched, like the digital flat panel display industry, it opens the door for new products and markets. An already explosive marketing opportunity and product demand has now been further enhanced with the addition of the government mandated change-over to digital signals in the next two and one half years.

Activision.TV offers a turn-key solution and one-stop-shop for both its products and services. The Company has a 24-hour help desk which is staffed seven days a week and a service representative available to fix unexpected problems within hours and without hassle to its customers. This total solution is possible in part because of the Company’s trained professional staff and its patented Works-in-a-Box (WIB) technology which enables easy field replacement of the modular computer inside the Computer Integrated Television.

Market Opportunities

Although the digital flat panel display system is a viable solution in a multitude of applications, Activision.TV has initially targeted the hospitality industry in both the narrowcast and broadcast markets.

With the capability to exercise immediate data delivery and recovery, content and promotional changes can be readily adapted to meet the demands of each System manager – both locally and/or at a central corporate location. Activision.TV allow both local properties and advertisers to exploit consumer purchasing habits faster and in more flexible ways complementing efforts to promote local restaurants and services and corporate promotions at the same time. The results are greater guest satisfaction, reduced vacancies through cross-promotion, increased revenues through local and national promotion, and targeted selective promotions to consumers to promote higher-margin products with the flexibility to make changes across an entire property or an entire national network in minutes.

The Products

Activision.TV is currently in its third generation of design for its three primary products and services: 1) its digital ready Computer Integrated Television (CIT), 2) its patented Works-In-A-Box (WIB) computer, and 3) its Digital Media Delivery Systems. The Company has made significant advances in features, size and weight of each – while at the same time cutting costs and enhancing performance of the hardware and software significantly. The patented WIB concept enables the user to upgrade his display at any time by adding additional components or software at a reasonable cost and virtually eliminating obsolescence. Maintenance problems can be solved quickly with the removable box replaced easily from an on-site spare, or with a new unit express shipped for repairs and returned next day. And connectivity is easy via cable, satellite or internet – with easy local installation via Ethernet or Wi-Fi.

Because the digital flat panel display industry is relatively young, the demand for Activision products and services is varied and immense. And the Company is positioned to capture a significant share of this rapidly growing market because of its patented and state-of-the-art hardware and software systems. The required conversion to digital television is now established. Activision is here to provide simple, proven solutions to this otherwise puzzling transformation. Please call us. We’re your solution and we’d like to help.