Expects Strong Impact on Financial Performance for Second Half of Year
VANCOUVER, Wash., May 21, 2019 /PRNewswire/ -- Adaptive Ad Systems, Inc. (AATV), a company that provides Dynamic Digital Ad Insertion (DDAI) via its streaming media hardware and proprietary processing software for the U.S. cable TV and Satellite markets, today reports that it has added 25 new installations of its proprietary Digital Ad Insertion systems in different locations throughout the US.
Continuing the company's aggressive expansion plan to increase its cable tv subscribers and installed Franchise cable TV base for its Dynamic Digital Ad Insertion systems, which inserts into cable TV networks, Adaptive has in 2019 installed 25 new Digital Ad Insertion systems throughout the US, from Washington to Florida. Each Adaptive Ad Insertion systems delivers local, regional and National advertising to subscribers living in the Adaptive network area via cable, fiber, and sometimes over the internet, with 100 to 100,000 subscribers per Adaptive system.
J. Michael Heil, Chairman & CEO of Adaptive states: "Typically there is a high cost associated with the installation of the conventional technology required to establish and utilize the traditional and independent network systems for the small network markets. The additional cost of selling, scheduling and billing for these ad services, prevents most, if not all traditional systems to insert and sell Local and Major National Advertisers at the same time. Adaptive Ad Systems' business model is to contract with these independent cable systems and install our proprietary hardware and software systems. Our system then identifies each "System" as part of Adaptive's large advertising viewing network, which appears to the advertiser as one large system. This makes it a viable and exceptional revenue opportunity for the advertisers, the Company and our systems at the same time."
The Adaptive system allows advertisers across the US to purchase ads inserted into a linked group of the Adaptive systems which adds up to many times that of the small individual systems. Adaptive Ad Systems manages all ad related activities, provides all technical support, sales, scheduling and billing, and has entered into a revenue share agreement with each system, in proportion to their number of subscribers.
This continuing business model of aggressively expanding Adaptive's system installations not only resulted again in revenues close to the record-breaking revenues of the first quarter of 2018 for the 18th quarter in a row, but is also expected to have a continuing significant impact on revenue and profit development for the rest of the year 2019 and 2020.
ABOUT ADAPTIVE AD SYSTEMS INC.
Adaptive Ad Systems Inc. is a digital media and video communications streaming company that together with its subsidiary manufactures develops and deploys dynamic digital ad insertion (DDAI) and streaming media hardware and proprietary processing software for the cable TV, Satellite and IPTV markets. Adaptive is focused on the 2nd and 3rd tier cable company networks. Its digital ad insertion technology and unique profit-sharing model overcomes the barriers that typically prevent the insertion of National and Local advertising products into those network locations. Adaptive exclusively sells all available advertising in each market it has contracted, maintains technology ownership and has implemented a unique and advantageous profit-sharing model with its clients. The Company's technology and business model allows to dynamically and economically serve currently over 210 designated marketing areas in approximately 34 states in the United States. Adaptive also provides broadband and cable TV services in some niche markets. For additional information, please visit: www.adaptiveadsystems.com.
Any statements contained in this press release that do not describe historical facts constitute forward-looking statements. Forward-looking statements may include, without limitation, financial projections, statements regarding the plans and objectives of management for current and future operations, the development, regulatory approvals and commercialization of the Company's products, or any of the Company's proposed services, systems, services, partnerships or acquisitions. Such forward-looking statements are not meant to predict or guarantee actual results and performance and actual events or results may differ considerably. Factors that may cause actual results to differ materially from any projections may include, without limitation, the Company's delays in the development of its products, the inability to obtain additional financing, the impact of significant new or changing government regulation on the industry, existing or increased competition, results of arbitration and litigation, stock volatility and illiquidity, and the Company's general failure to implement the Company's business plans or strategies. The Company assumes no obligation to update any forward-looking statements to reflect any change in events or circumstances that may arise after the date of this release.