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.
They were founders of both Quantum Marketing International Inc. and HSN
Direct International, a company controlled by Flextech PLC, of which
Telecommunications International Inc., Home Shopping Network and the
Harrington brothers remain minority owners.
“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.