Reliant Interactive to Focus Infomercials on the Internet
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Reliant Interactive Media Corp. of Clearwater, Fla., will end its relationship with HSN Direct International Ltd., under which it developed marketing programs via direct response TV ads, and will pursue infomercial and Internet marketing strategies.
Kevin Harrington, the company's chief executive officer, and Tim Harrington, its president, founded and were consultants to HSN Direct, where they generated many direct response campaigns for products including "Tony Little's Ab Isolator" (over $85 million in sales), "Sweet Simplicity" (over $70 million in sales), and "Body Flex" which has sold more than 2 million videos.
As a result of the HSN Direct affiliation, Reliant was previously barred from participation in any Harrington generated infomercial or "shop at home" marketing campaigns and was primarily a conduit for product marketing through the Internet and other retail distribution channels.
The Harringtons said they will apply their direct-to-consumer marketing expertise to the burgeoning e-commerce marketplace, in synergy with the infomercial sales channel which they helped to pioneer. Since 1985, the Harrington brothers have sold $2 billion worth of consumer products through various channels of distribution, including direct response television, "shop-at-home" channels, and international relationships in more than 70 countries.
"Our motivation for this recent decision has been fueled by our realization that the marketing of Web-based businesses can be tremendously accelerated through TV exposure. As Reliant's largest shareholders, Tim and I are committed to increasing shareholder value. Leaving HSN Direct in order to bring our direct response expertise to Reliant is a natural extension of that commitment," said Kevin Harrington, chairman and chief executive officer of Reliant Interactive Media.
"Strategically, Reliant is positioned to benefit from the convergence of TV and Internet marketing," he added.
The company also has retained investor relations firm Coffin Communications Group, which also handles Internet retailers K-Tel International and Shopping.com.