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Jan 6
DriverTV Adopting Cost-Per-View Model

In November of 2005, DriverTV launched its business by guaranteeing a specific number of views over a 12-month period for their automaker customers. They are now moving toward and adopting a cost per click model.

DriverTV is now on Comcast (CMCSA), Time Warner Cable (TWX) and Cox. What they do is take the newest vehicles from General Motors (GM) and DaimlerChrysler's Chrysler Group and present high-definition videos of them on-demand.

DriverTV.jpgCEO Jan Renner said, "We realize the car companies can't pay endlessly for cost per views, so DriverTV works with them along with their media and interactive agencies on details of the deals." The original annual fee structure ranged from $60,000 to $100,000 for each model they created a video for.

Renner added that the cost-per-view model was part of the strategy from the start, and that he had to show carmakers that the company could deliver on their promises of reaching digital cable subscribers before he implemented it. "We're hoping we can charge more each year, but not until car companies are able to see the value in it."
 
DriverTV has a potential reach of 20 million through digital-cable TV subscribers of Comcast, Time Warner Cable, Cox and Insight. They also have a presence in Liberty Media's On Command Hotel Network, and now on their first Website driverTV.com.
 
They have added four new clients to their roster in BMW, Porsche, Volvo and Suzuki recently.

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