Everything is digital these days. Well not my new flat screen in the bedroom haven't got the box yet and therin lies a lot of confusion for me. When the gov mandated switch over happens what happens to my analog signal the tv is receiving now?... won't the cable company just smooth this out on their end of the pipe? Then again I'll need that digital box. In Europe they have all but given up for AM radio but they have an interesting digital thing happening with FM... FM digital radio... I think that could be huge here and offer us a rebirth ofr radio like never before... college style without the glam of famous hosts...of course it would put XM & Serius out of business. There is a killer ap out there not yet touched- low cost digital radios re wired into soundsystems, digital radio that will include cover art and possibly GPS functions and other tie ins. There is a reason Apple has not only refused to put radio chips in their IPOD's & they have bought out a few companies that have the technology... They do not want Digital radio to land here but give a year and it will be sweeeping Europe. Then Apple will shift and seek to control it... they do as of now have the magic chip that would allow every IPOD to provide radio... and commercials... Anyway, TV is a semi reality NOW & there has been a delay in the roll out in the US which allows for a smoother transition. It seems like the right move with one million old folks waiting for their crossover boxes... in this giant move to digital isn't their an investment angle? A pure play? Why yes probably NFLX! Which is up huge today. I've got another name that will benefit from the new digital world DG Fastchannel DGIT. Advertising for the new digital world. How the company came about- Originally called Digital Generation Systems Its ad delivery business consisted almost entirely of shipping tapes to radio stations. From an all-time high of about $13 in mid-1996, a few months after going public, its stock had dropped to around $0.50 by the end of 2005. The company then ramped up it's comeback strategy and through a combination of internal development and acquisition, it had moved into the delivery of broadcast television spots, eliminating competition and increasing prices. It has also been increasingly beaming digital ads to stations through satellite. then came 2006 and the merger with FastChannel Network, which was delivering advertising through the internet. on May 26, 2006, it did a reverse-split of 1:10, turning a $0.55 stock into a $5.50 stock. DG FastChannel has also bought up other key competitors> GTN, Point.360 (which brought in a large number of clients from Hollywood) and Pathfire (which increased its ability to deliver ads through the Internet as well as increasing its business with clients such as Warner Bros, Sony Corp. and Paramount. Finally, it reached a partnership with Viewpoint Corp. and bought 13% of the company, giving it a presence in delivering ads to Internet sites. âit now counts over 5,000 advertising clients, including 75 of the 100 largest advertisers. (as of 07 probably higher #'s now) âdeclining customer concentration is an important development in the DG FastChannel story.â Through these clever acquisitions DGIT has a nice mini- -monopoly in digital distribution of ads, the companyâs next big opportunity is high definition television. >> the company revealed that every 1% of its ad volume that shifts to HD generates an additional $5 million in incremental revenues because of higher prices. This is huge because when you run numbers the sheer amount of ads makes everything add up very fast indeed. Gross margins on delivery of HD ads are 75.6%, compared with 59.6% margins on electronically delivered standard definition ads. âThe catalyst for growth is the migration to high-def,â says ThinkEquity analyst Darren Aftahi. So Obama's delay of going to digital allows us to fully appreciate all that is changing within the advertising world. there will be the old way and the new way and the transferring to the new way and there will be DGIT in the thick of it. BWS Financial recently initiated DGIT with a Strong Buy and price target of $30 saying the Federally mandated transition to digital transmission has created a true catalyst for earnings growth at DGIT. The firm says the has become the single source for agencies, advertisers, and media outlets in transferring commercials, syndicated programs, and video news releases to the appropriate media outlet. And I agree, the move to digital is constant. Every guy and gal who bought a big screen TV is watching these games in digital it's just me who hasn't got the new cable box yet! All ads pushed on the digital network-- that number-- is guaranteed to increase even as ad spending in other forms, ie magazines is declining... it's a hit spot of advertising and that's what stonedinvesting is all about- finding those hot spots. DGIT's two recent acquisitions reflect its strategy of consolidating smaller, less financially capable competitors enabling it to both increase share and margin. DGIT will benefit from revenue gains with the deepening HD penetration of TV advertising. *Partnership with Viewpoint's Unicast, enables companies to take advantage of online video growth * VWPT's web-based solutions complement DGITs creative services, video platform and advertiser relationships * this partnership will enable thousands of existing video ads to be cost- efficiently repurposed on to the web * The online video industry could increase 10x by 2010 from $300mm today. * Partnership will include DGIT $4.3mm equity investment in VWPT Keep this Digital darling on your radar screen folks and I'm calling Time Warner now for a new box! ~ stoney PS:I cribbed some history of the company stuff from SeekingAlpha and I used an Oppenheimer internal report from 07 & the BWS piece from yesterday to help me form this opinion. I currently own 800 shares. Plan to increase.