Granada Media Teams With Boots To Create Internet and Broadband Company
Granada Media has announced that it is to form an independent internet and broadband company in partnership with high street retailer Boots.
The company is to launch a health and beauty information and transactional website and interactive digital television channel in February 2001. Revenues from the venture will come from the sales of around 10,000 product lines and services, broadcast and online advertising and from TV programme and online sponsorship. Operating costs for the first year are expected to reach £18m.
Steve Russell, chief executive of Boots, said the venture would be Boots’ primary iniative in consumer e-commerce. “The internet has to be human and engaging, as well as known, trusted and simple to use,” he continued. “The new company will be the first to launch a TV channel allied to a broadband internet business, placing customers a click from all the products, services and information they need.”
Means of accessing the site will initially include TVs and home computers, with mobile and palm top capabilities being added as these technologies develop. The new company anticipates that as broadband technology becomes more common in homes and offices, the TV channel will be increasingly integrated with the website, adding to the interactivity and personalised services.
Health and beauty have been identified as two of the world’s largest growing markets, with sales of health and beauty products and services excluding the NHS reaching around £11bn per year, according to Verdict Research.
Steve Morrison, chief executive of Granada Media said, “Granada’s broadband strategy is based on the formation of alliances with strong partners.” He went on to describe Boots as “the country’s most trusted health and beauty brand.” Boots will own a 60% stake in the new company, while Granada Media will own the remaining 40%.
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