• by Tom Siebert , November 16, 2006

Channel M, a nontraditional media company that provides in-store and entertainment venue TV programming with advertising, has acquired ScreenPlay, a producer of customized audiovisual programming for businesses.

The acquisition means that Channel M expands its service offerings to customers, says Eric Hebel, president and COO for Channel M--including more live-action programming, a full-service promotions department and enhanced production capabilities. The two companies have very little crossover of clients, which "will enhance opportunities from two pools," he says.

Terms of the deal were not fully disclosed, but it will make ScreenPlay Channel M's exclusive content provider, and the Seattle-based company's founder, Mark Vrieling, Channel M's largest shareholder.

"Our strength was always media sales and marketing expertise; now we're adding 30 people in production," says Hebel. "There's nothing but upside and synergy here; nobody gets laid off."

ScreenPlay's clients will benefit from expanded marketing opportunities in Channel M's targeted venues, which include amusement parks, GameStop, sports bars, video arcades, My Gym, Minor League Baseball, and more.

"This deal enables both companies to focus on our core competencies," says Vrieling. "For ScreenPlay, that means content; for Channel M, it means customers will reap the benefits of a company with significant marketing expertise."

The deal doubles the number of employees at Channel M to roughly 60, and adds a fourth office in Seattle to the company's Los Angeles, New York and Detroit presence.

Advertisers on Channel M include VH1, Sony Pictures, Disney, Jim Beam, Atari, Dodge and Discovery Channel.