Harris has landed a $75 million deal with 7-Eleven to help launch a digital television network for its 6,200 stores nationwide. Melbourne, FL based Harris will provide the electronic backbone of “7-Eleven TV” – a digital ad vehicle for the convenience-store company that will also provide entertainment, news, weather, sports and other information to customers.
Terms of the 10-year deal call for Harris to expand a pilot program to the entire 7-Eleven brand. In the pilot program, 7-Eleven TV has been broadcast into 500 stores in select markets, including Florida.
Under the 10-year agreement, Harris is providing its award-winning Digital Out-of-Home hardware and software, InfoCaster and Punctuate, in addition to its Managed Services offering to Digital Display Networks, which is providing turnkey services, as well as managing content production and ad sales for 7-Eleven TV.
Launched in 2010, 7-Eleven TV provides 24/7 programming in 7-Eleven ‘s convenience stores, featuring national and local entertainment, and news and weather, as well as advertising highlighting 7-Eleven proprietary brands, in-store and out-of-store brands, and special 7-Eleven promotions. 7-Eleven TV already is operating in 500 stores in some of the top DMAs and highest traffic volume 7-Eleven stores in the U.S., including New York, Los Angeles and Chicago. When fully deployed, it will be carried in 6,200 stores — reaching more than 200 million shoppers monthly. Based on an analysis of various Nielsen ratings data, the GRPU (gross rating point units) of 7-Eleven TV will make it the fourth largest broadcast TV network when fully deployed.
Harris’ operations center in Melbourne will produce, monitor and maintain the content. Harris provides a similar network for McDonald’s Corp. nationwide; the new Amway Arena in Orlando; and the Marina Bay Sands resort in Singapore, among others.
RBR-TVBR observation: We assume this is a better deal: 7-Eleven’s first foray into digital signage was via a partnership with Next Generation Networks (NGN) some five or six years ago. NGN reportedly agreed to pay a minimum of $3 million in yearly partnership fees. NGN’s contract with 7-Eleven also included a clause that guaranteed a payment of $150,000 if NGN failed to install its network in at least 4,800 7-Eleven stores. 7-Eleven also had the right to terminate the partnership agreement with just 30 days notice if NGN didn’t meet the 4,800 installed location mark. NGN failed to meet the required rollout schedule and now is kaput.