With Fries: McDonald's Rolls Out In-Store Network

McDonald's TV-Viva McDonald's in Las VegasFollowing other retailers, McDonald's is rolling out an in-restaurant network in 20 locations across the country -- after starting late last year with two in a test mode.

The fast-food company had previously said the McDonald's Channel included content from a series of Discovery Communications networks. There are also opportunities for promotional messages and some branded vignettes for McDonald's products, such as fries and Big Macs. It is unclear, however, whether McDonald's will eventually do what other retailers have done and allow other marketers to advertise on its channel.

The rollout to the 20 restaurants will begin in May with Harris Corp. through a digital signage unit providing the technological backbone. The network had been in testing in a McDonald's on the Las Vegas Strip and a California restaurant since December 2008.

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ChannelPort Communications has been hired to oversee the network's content strategy, which includes inking deals with programmers, as well as the overall monetization plan of the channel. The company has served as a middleman between McDonald's and Harris.

McDonald's will evaluate the channel's operations in the 20 locations for several months before deciding whether to embark on a wider expansion. At the flashy McDonald's in Las Vegas, the channel is available on 14 screens, with content from networks such as Discovery, TLC and Animal Planet, as well as weather information.

McDonald's is not the first fast-food chain to launch a place-based network. Via IndoorDirect, which specializes in placing and programming content screens in restaurants, network distribution is already in Wendy's, Arby's and Hardee's, among others.

IndoorDirect offers some original content, as well as programming from networks such as CBS and WE. The company says its networks reach on average 10,000 customers per month per restaurant.

While the economy may be suffering, place-based media providers continue to expand, with Screenvision recently bringing content to theater lobbies, and SeeSaw doing the same in sports arenas.

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