Cablevision Systems Corp. and Princeton Video Image Inc. announced a
strategic alliance Monday under which PVI will get a $17.5 million cash infusion
from the MSO.
Of that sum, Cablevision will invest $10 million in PVI in exchange for 4
million common shares of PVI's stock. In addition, the MSO will prepay $2.5
million in nonexclusive license fees promptly, with another $5 million to be
paid upon PVI shareholder approval of the transaction.
For Cablevision, the MSO said, the alliance will mean getting 'full and early
access' to PVI's technologies that enable virtual advertising, virtual product
placements and programming enhancements.
Cablevision said it will utilize these applications across its various
operations, from Madison Square Garden and the New York Knicks and Rangers to
Rainbow Media Holdings Inc.'s various cable networks.
PVI technology enables virtual insertion of the first-down marker in National
Football League telecasts, as well as virtual insertion of advertisers' logos on
sports fields and at entertainment events like CBS' Grammy Awards. PVI has also
inserted virtual products for Colgate-Palmolive Co. into Televisa S.A. novellas
for the past two years.
In addition, Cablevision and PVI agreed to jointly develop additional
technological products, including targeted advertising via the MSO's new digital
set-top boxes.
PVI is a member of the joint venture that developed 'EyeVision,' the
270-degree video system featured on CBS' Super Bowl coverage.
