HughesNet Powers Automotive Broadcasting Network at Automobile Dealerships Nationwide

June 16, 2008

The Automotive Broadcasting Network™ (ABN), a private auto retailing television network, has selected the HughesNet® Managed Digital Media Service to distribute video content to automotive dealerships across the US.

The Automotive Broadcasting Network is a subscription-based service providing high-quality, family-friendly entertainment programming from CBS not normally available during business hours, as well as clips and segments from CBS news and talk programs, to each dealer site. Dealers who subscribe to the service also can develop and control their own local advertising content to be shown throughout their facilities. This translates into new opportunities to enhance customer loyalty, improve customer satisfaction scores, and boost sales by reaching customers while they wait for their cars to be serviced.

“When looking for a service provider, we chose Hughes because of its rich heritage as a turnkey provider of cost-effective broadband satellite services to geographically dispersed locations. Satellite is an ideal transport technology to distribute digital media to the point of impact—enabling ABN to provide a service that will increase sales, strengthen brand recognition, and improve the customer experience at the dealer level,” said ABN founder and CEO Jerry Daniels.

HughesNet Managed Digital Media Services includes project design and consulting, broadband transport for content distribution, best-of-breed hardware and software network components, installation, maintenance and customer support, leaving enterprises free to focus on marketing and sales.

According to Mike Cook, Hughes senior vice president, “Through HughesNet Managed Digital Media Services, ABN is able to give automobile dealers a cost-effective way to spend their advertising dollars, improve customer loyalty, and more importantly, reach their customers at the point of impact.”

According to ABN, research has shown that 30 percent of consumers make unplanned purchases as a result of in-store television. At a dealership, customers who choose to wait for their vehicles while they are being serviced spend an average of one hour, 32 minutes at the dealership. With ABN network programming, dealers can relay up to 30 targeted messages an hour to those captive customers.

Also central to ABN's offering is a series of automotive-specific “shorts” such as tech tips and walk-arounds, which are produced by ABN and designed to inform and educate customers about dealer-specific products and services, and ultimately increase sales. These spots, together with promotional spots provided by the dealer, replace typical commercials seen on broadcast or cable TV.

There are more than 22,000 automobile dealerships in the United States and more than 200,000 worldwide. ABN launched the service in Q1 to dealerships in 29 states and plans to roll out additional sites as dealers sign up for the service.