DG (company)
{{Short description|First National online service platform}}
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{{Infobox company
| name = Digital Generation Systems, Inc.
| industry = Digital media services
| fate = Acquired by Extreme Reach
| founded = {{start date|1991}} in San Francisco, CA
| defunct = {{End date|2014|02|07}}
| hq_location_city = Irving, Texas
| area_served = Worldwide
| parent = Extreme Reach
| website =
}}
Digital Generation Systems, Inc., commonly referred to as DG, was the very first National, digital online service platform in the world. Invented expressly to deliver broadcast radio commercials over POTS lines, replacing the method of sending 5 inch reels of magnetic recording tape via FedEx air delivery to anywhere in North America. Upgraded parts and procedures were invented enabling the highest quality, uncompressed Dolby digital audio possible for clients in advertising, production and radio broadcast industries. DG was created for and used exclusively by ad agencies and production studios, ultimately delivering studio-quality audio ads daily to over ten-thousand broadcast radio stations, each ad being transmitted within an hour. A decade later, a new owner used a wider combination of advanced telecommunication systems for television, cable, network and print publishing destinations. On February 7, 2014, DG's TV advertising business was acquired by Extreme Reach, Inc. and its online advertising business was spun off into Sizmek, Inc.{{Cite web |url=http://www.marketwired.com/press-release/digital-generation-completes-spin-off-sizmek-merger-transaction-with-extreme-reach-nasdaq-szmk-1876873.htm |title=Digital Generation Completes Spin-Off of Sizmek and Merger Transaction with Extreme Reach |access-date=2014-07-16 |archive-date=2014-07-27 |archive-url=https://web.archive.org/web/20140727031322/http://www.marketwired.com/press-release/digital-generation-completes-spin-off-sizmek-merger-transaction-with-extreme-reach-nasdaq-szmk-1876873.htm |url-status=dead }}
History
DG temporarily changed its handle to DG FastChannel when DG Systems and FastChannel Networks merged in 2006.{{cite news|title=DG Systems Completes Merger with FastChannel Network|url=http://www.businesswire.com/news/home/20060531006075/en/DG-Systems-Completes-Merger-FastChannel-Network#.VLxoTI3QMdU|accessdate=19 January 2015|work=Business Wire|date=31 May 2006}}
DG Systems initially used POTS to distribute later adding web-based and satellite technology for advertising content distribution thereby all but eliminating the need for reel to reel audio tape and CDs for radio station spot distribution. Later the system replaced the need for videotape distribution for television. DG Systems created a hybrid system that allowed for content delivery through either the satellite distribution system or through the Internet.{{cite news|last1=Dickson|first1=Glen|title=DG FastChannel Touts HD Growth, Web Prospects|url=http://www.broadcastingcable.com/article/114943-DG_FastChannel_Touts_HD_Growth_Web_Prospects.php?q=scott+ginsburg|accessdate=19 January 2015|work=Broadcasting & Cable|publisher=NewBay Media, LLC|date=8 August 2008|archiveurl=https://web.archive.org/web/20120930085753/http://www.broadcastingcable.com/article/114943-DG_FastChannel_Touts_HD_Growth_Web_Prospects.php?q=scott+ginsburg|archivedate=30 September 2012}}
FastChannel Networks used the Internet for delivery of content. FastChannel Networks created a Web-based interface for developing, managing and delivering advertising content. Using the Web, post houses, advertisers and agencies were able to collaborate, manage and distribute advertising content through an online application.
In 2009, DG was ranked fifth on the Fortune Small Business list of the US' 100 Fastest Growing Small Public Companies.{{cite news|last1=Albiniak|first1=Paige|title=Fates & Fortunes Weekly Round-Up: Sept. 8, 2009|url=http://www.broadcastingcable.com/blog/Fates_Fortunes/22669-Fates_Fortunes_Weekly_Round_Up_Sept_8_2009.php?rssid=20116&q=scott+ginsburg|accessdate=19 January 2015|work=Broadcasting & Cable|publisher=NewBay Media, LLC|archiveurl=https://web.archive.org/web/20120930085741/http://www.broadcastingcable.com/blog/Fates_Fortunes/22669-Fates_Fortunes_Weekly_Round_Up_Sept_8_2009.php?rssid=20116&q=scott+ginsburg|archivedate=30 September 2012}} It also ranked fifth on the 2009 Fortune Fastest Growing Companies in the World listing.{{cite web|title=100 Fastest-growing companies|url=https://money.cnn.com/magazines/fortune/fortunefastestgrowing/2009/full_list/|website=Fortune|publisher=Time|access-date=19 January 2015|date=2009}}
In 2011, DG began buying up digital ad serving technologies in the online space, specifically focused on Rich Media vendors with global reach. Such companies include Mediamind Technologies, EyeWonder and the Unicast platform.{{cite web|title=DG Acquires Ad Technology Company MediaMind|url=http://adexchanger.com/online-advertising/dg-acquires-ad-technology-company-mediamind/|website=adExchanger|date=16 June 2011|accessdate=19 January 2015}}{{cite news|title=DG FastChannel: The Digital Darling|url=http://seekingalpha.com/article/52158-dg-fastchannel-the-digital-darling|accessdate=19 January 2015|work=Seeking Alpha|publisher=Wyatt Investment Research|date=31 October 2007}}
In 2011, DG was responsible for the first second-screen ad being served in connection with Channel 4's Million Pound Drop TV game show. The second screen ad format was watched by 20% of the online playing audience according to Dean Donaldson, Global Head of Media Innovation.{{Cite news|url=https://www.theguardian.com/media-network/media-network-blog/2013/feb/11/second-screen-marketing-case-studies|title=Second-screen marketing case studies|last=Berliner|first=Michael|date=2013-02-11|work=The Guardian|access-date=2017-04-21|language=en-GB|issn=0261-3077}}
In August 2013, DG agreed to spin off their online ad tech operations (branded as DG MediaMind and consisting of the merged operations of the former MediaMind, EyeWonder, Unicast, Peer39, and Republic Project) into a new company named Sizmek, Inc. and to sell their remaining operations to Extreme Reach in a deal valued at $485 million. The money was used to pay off all of DG's debt and to fund a $3/share dividend to shareholders. All of DG's cash and working capital was then transferred to Sizmek and Extreme Reach acquired the remaining operations. The deal closed on February 7, 2014.
In March 2019, Sizmek filed for Chapter 11 bankruptcy.{{Cite web|url=http://videoadnews.com/2019/03/30/sizmek-files-for-chapter-11-bankruptcy/|title=Sizmek Files for Chapter 11 Bankruptcy {{!}} Video Ad News|language=en-US|access-date=2019-03-31|archive-date=2019-03-31|archive-url=https://web.archive.org/web/20190331064601/http://videoadnews.com/2019/03/30/sizmek-files-for-chapter-11-bankruptcy/|url-status=dead}}
Network Reach
In 2011, MediaMind, the online division of DG at the time, was the second largest online ad Server behind Google, reaching 700 million unique users, as accredited by the Media Rating Council.{{cite web|title=New Accredited Metrics Calculate MediaMind's Reach at over 700 Million Unique Viewers |url=http://www.mediamind.com/Content.aspx?page=press_releases&id=214 |website=MediaMind Press Releases |publisher=MediaMind |accessdate=19 January 2015 |archiveurl=https://web.archive.org/web/20110630144116/http://www.mediamind.com/Content.aspx?page=press_releases&id=214 |archivedate=June 30, 2011 |url-status=unfit }}
References
{{Reflist}}
External links
- [https://money.cnn.com/magazines/fortune/fortunefastestgrowing/2009/snapshots/5.html CNN Money, Fortune 500 Listing ]
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