Tuesday 24 July 2012

Digital Shelf Space takes sports instructional DVDs to new heights

Digital Shelf Space (CVE:DSS; OTCQX:DTSRF) is a company that has grown dramatically in the last two years, with its home workout mixed martial arts inspired DVD series, called GSP RUSHFIT, exploding in popularity recently and beating out two top sports instruction brands in its path.
CEO Jeff Sharpe tells Proactive Investors that plans are going "extremely well" with GSP RUSHFIT, which features Mixed Martial Arts welterweight world champion Georges St-Pierre.
Indeed, even with St-Pierre out of the media since last year due to a major injury, the fitness DVDs reached the No. 1 spot on Amazon.com’s (NASDAQ:AMZN) exercise and fitness top rated product list in June. The product has only been listed on the site for six months now.
"We've seen business on Amazon grow month over month, and we saw more volume in June than we did in January, despite the fact that June is typically one of the slowest months of the year in terms of fitness," says Sharpe.
"We definitely validated that it's a product that consumers like, and we are moving up the ladder very quickly."
In terms of customer ratings, the company's GSP RUSHFIT product pulled ahead of Beachbody’s P90x and INSANITY and Zumba, who took in second through fourth place in the exercise and fitness category.
Sharpe also says the DVD series broke the top 10 in sales volume on an hour by hour basis, and is the only product to do so outside of Beachbody and Zumba products, long-time veterans in the space.
The GSP RUSHFIT DVD series was launched in just December of 2010, and can be purchased directly through the GSP RUSHFIT website (www.gsprushfit.com) as well as Amazon.com and through other affiliate sites, and in a number of retail stores across the world.
In Canada, the series is carried by major retailers such as Wal-Mart (NYSE:WMT), Future Shop, National Sports, Sport Check, Best Buy (NYSE:BBY) and Canadian Tire (TSE:CTC), and in the U.S. by The Sports Authority and Academy Sports and Outdoors.
Sharpe says he hopes to see even more sales volume as St-Pierre is tentatively scheduled to return and fight for his title in November, the start of the peak retail season, with tons of media hype set to be surrounding the event.
The company's CEO also hopes to see an uptick this fall in international distribution. The GSP RUSHFIT DVD series is already represented in more than 90 countries around the world through its global distribution agreement with Northern Response, with a presence in places like Australia and the Philippines.
One particular extension of the product under the GSP RUSHFIT moniker is also in the works, and is currently still in discussions with St-Pierre's management, says Sharpe. Beachbody went the nutritional supplements route, while Zumba expanded into clothing and instructor certification.
"We are continuing to look at extending the brand with ancillary product development."
If the popular fitness series wasn't enough, Digital Shelf Space has looked to diversify its product portfolio, recently signing an exclusive video production agreement with Golf Experiences, LLC, operator of the PGA TOUR's TOURAcademy.
The company managed to secure 1991 British Open champion and 17-time winner on the PGA Tour, Ian Baker-Finch, to be the host for the new TOURAcademy Home Edition DVD golf instructional series, which should be out "in a matter of weeks in terms of pre-order".
The agreement, which includes the production, marketing, and global distribution of a direct-to-home DVD golf instructional series, will be marketed under the TOURAcademy brand name.
"This DVD series is effectively one of the first of its kind in the space," says Sharpe, “and we are working on it 24/7, with a full rollout plan anticipated similar to what we did for GSP RUSHFIT."
The company finished shooting the golf instructional series in April, and is ideally expected to hit store shelves this fall, through direct agreements and in partnerships with the TOURAcademy.
Sharpe says Digital Shelf Space is also continuing to work with a handful of global brands for partner content deals, and would like to see at least one new agreement signed by the end of the year.
"Deal flow is not our issue by any means - our phone is ringing off the hook," he says.
"We have just got to be really selective with what we choose."
Indeed, it seems that the CEO is not the only one that is more than confident in the "tremendous potential” of the company.

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