(Sharecast News) - Entertainment marketing communications group Reach4entertainment Enterprises announced on Thursday that its subsidiaries Dewynters, and Spot and Company of Manhattan, have renewed their existing media buying agreements with Miroma International and Miroma Outcomes, respectively.
The AIM-traded firm said that in addition, the media buying agreements had been extended to Agency Press, trading as 'Sold Out', and Wake the Bear, in order to drive additional value to the respective agencies and their client bases.
In their previous form, as announced on 12 February last year, the agreements allowed for the provision of media trading services from Miroma to Dewynters and SpotCo, for which Dewynters and SpotCo were compensated via a referral fee.
To allow for additional trading opportunities by the parties, each contract had been amended to allow for the provision of ancillary services by Dewynters, SpotCo, Sold Out and Wake the Bear to Miroma or its client base.
Those ancillary services covered the scope of works that Dewynters, SpotCo, Sold Out and Wake the Bear provided to its core client base at present, the board explained, including media planning, media buying, media inventory trading services, creative services content production services, strategy and website design.
The agreements were amended so that the provision of those services would be based on the respective agency's rate card, ensuring that Miroma would be dealt with in the same way as any third party client.
Miroma are companies wholly-owned by Miroma Holdings, a company of which Marc Boyan - the CEO of Reach4entertainment - is both a director and the controlling shareholder, the board said.
"The amended agreements and the New Agreements are expected to result in efficiencies in media buying for Dewynters, SpotCo, Sold Out and Wake the Bear, through the expertise and purchasing power of Miroma, for the benefit of Reach4entertainment and its clients, as well as providing additional referral income for Reach4entertainment based on its media spend with Miroma," the directors of Reach4entertainment said in their statement.
"Commission rates paid by Miroma to Reach4entertainment are calculated on a case-by-case basis, however any rates applied will always fall within predefined parameters, which have been agreed and set by the board and are based on market rates paid by Miroma to independent third parties.
"The amended agreements and the new agreements have been entered into on an arm's-length basis and negotiated and approved by the independent directors of Reach4entertainment."
Reach4entertainment said the agreements would be reviewed annually by the relevant counterparty, and would continue unless terminated by either counterparty, providing three months' notice.