We never enjoy reporting on bankruptcies, business closures and failures. News we are afraid has just come in that Digital Poster AS has gone into bankruptcy in Norway.
We last wrote about these guys in February in some detail …
Network Mediagroup is heavily involved in Digital Out of Home in the region, via a subsidiary called Digital Posters AS in Norway and through another subsidiary called Q-Vision in Sweden.
Together the network comprises of around 1700 screens in 525 locations offering 300 million viewers per year
Digital Posters AS is the largest network in Norway with over 700 screens installed in 300 buses (Transit Advertising) and 26 retail outlets.
According to Finansavisen, Norway’s daily financial newspaper, Digital Poster AS has gone into receivership with losses last year of about GBP 2-3 million
Revenues 2005 : 6,2 mill NOK ( GBP 600.000 ) Results -7,9.mill NOK (GBP 790.000 )
Revenues 2006 : 23 mill NOK ( GBP 2.300.000 ) Results -11,9 mill NOK (GBP 1.120.000)
Digital Posters’ business model was very similar to that of the UK’s Firebrand Media – screens given and installed for free, all or most of the advertising revenue then goes to teh installer, the venue getting some airtime on the network.
It’s a very difficult business model to get right and is capital intensive early days especially if you ever win a large roll out – we think Firebrand Media have found this to their cost for example when pitching for 1,000 retail estates – you would need an awful lot of money to fund an initial deployment and it will take 6 months or more to start gettinhg serious advertising revenue in – especially in a predominantly retail environment.