United News & Media’s new media division, Xilerate, is to take a 46.5% stake in Spaced, a company which makes web-enabled, interactive ‘pods’ which are placed in nightclubs. The investment from UNM will allow further development of Spaced’s technology and content platform.
The Spaced pods charge clubbers £2 to create a ‘photopage’ containing a digital image, message theme and background. These can be uploaded onto the Spaced website and emailed to friends via a hyperlink, allowing clubbers in different locations to communicate while out.
Chief executive of Xilerate, Andrew Nugée commented, “We see tremendous potential for the Spaced concept and great synergies for our businesses, particularly Rapture TV. A key part of Xilerate’s role is to invest in businesses that strengthen our existing activities, and the link with Spaced makes rapture a truly multi-platform proposition- on TV, online, on the phone and on the dance-floor.”
As well as revenue from the charge made to users, Spaced offer media space in three forms. One is branding on the backgrounds of the photopages. Consumers are offered a number of different backgrounds to have placed around their photo, and these backgrounds can be branded. Once created the postcard is not only posted on the website, but will also be emailed to people by the consumer, potentially creating an opportunity to spread specific brand messages directly amongst the target audience.
A second opportunity is created by the 3D video ‘attractor sequence’ which shows on the pod screen when it is not in use, and another by logo branding on each page of the site creating sequence. At some point during 2001 banner opportunities on the Spaced website will also be offered.
The product is designed to carry integrated advertising which uses both the pod and the website. So far names including Smirnoff, One 2 One, Casio and Ericsson are said to have shown an interest.
Spaced managing director Andy Silver said, “This deal means we will be able to carry out our business plan with confidence, and also feed from and into the other excellent youth media propositions that Xilerate has developed.”
