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Marketer Buys Stake In On-Demand TV Net

In a case of marketing mixing directly with media, the New Balance athletic-wear company is buying a stake in a video-on-demand cable TV network. The marketer is partnering with two cable companies in the venture, to be called exercisetv, which will be dedicated to fitness, sports instruction and motivational programming. The deal marks one of the deepest commitments an advertiser has ever made to on-demand, a relatively new cable service that enables viewers to watch programs whenever they want simply by pressing a button on their remote control. But since on-demand TV viewers can zap through conventional TV spots, New Balance won't be advertising on the channel in any traditional sense. Instead, the company will promote its products by getting many of the video participants to wear the company's shoes and clothing. New Balance also will sponsor graphic overlays that will run during the videos, giving viewers advice on subjects like the best way to warm up for a workout.

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