• by Michael Shields , September 1, 2004

Digital media distribution firm DG Systems has acquired TV commercial database company Source TV.

Source TV, headquartered in Boca Raton, Florida, provides access to a searchable database of over 350,000 television commercials--both on a subscription and per-transaction basis--to advertising agencies, advertisers, and production houses. The company has over 4,000 active users at more than 300 companies, generating more than 200,000 annual individual online sessions from its database.

DG Systems is the largest of a handful of companies offering digital distribution services to agencies and stations. DG uses both satellite and Internet transmission technology to act as a conduit between the two in distributing commercial assets. Currently, the company's network reaches more than 5,000 advertisers and agencies, nearly 2,000 broadcast and cable television destinations, and over 10,000 radio stations.

As part of the deal, Source TV's founder, Pamela Maythenyi, will become the company's senior vice president.

With the acquisition of Source TV, which is often used by agencies and advertisers to track competitive commercial schedules, DG will be able to offer clients a broader group of services.

"It represents an opportunity for DG and Source TV to consolidate [offerings] and create 'stickiness' within agencies and stations," said DG CFO Omar Choucair. The more groups in agencies who come to know the DG brand the better, according to Choucair: "What that gives us is more name recognition. It lets agencies know there is more to DG than just distribution."

This move represents the continuation of an expansion strategy DG embarked on beginning in February of this year. Back in June, the company acquired the assets of AGT-Broadcast.