National CineMedia has invested in IdeaCast, a provider of advertising to fitness centers and health clubs. NCM is investing up to 7.0 million in 6% preferred stock and will have an option to acquire additional common stock such that NCM's overall investment (including the convertible preferred stock) represents 50.1% of IdeaCast's fully diluted common stock.
Through a series of multi-year agreements with CNN, CNBC and MSNBC, IdeaCast exclusively re-distributes network programming to and manages program ad sales for health clubs. The network currently includes nearly 600 locations and has secured agreements with an additional 500 to join its network over the next several months. At that time, the IdeaCast health club network will cover 116 markets including all top 25 markets and 45 of the top 50 markets, representing over 200 million club visits per year.
The network includes Lifestyle Family Fitness, Club One, Fitness Formula, Spectrum and Town Sports International (NY Sports Clubs, Boston Sports Clubs, Washington Sports Clubs and Philadelphia Sports Clubs). National advertisers currently on the network include American Airlines, AT&T, Dunkin' Donuts and Quaker.