Management & Operations

D.C. Metro advertising agreement locks in 25% more revenue

Posted on January 21, 2020

The ten-year contract for Metro’s advertising concession, awarded to OUTFRONT Media Inc., is valued at more than $336 million over the next decade. WMATA
The ten-year contract for Metro’s advertising concession, awarded to OUTFRONT Media Inc., is valued at more than $336 million over the next decade. WMATA
Washington, D.C.'s Metro will dramatically expand its digital advertising network under a new contract that will provide an infusion of revenue to support rail and bus services for Metro riders. The ten-year contract for Metro’s advertising concession, awarded to OUTFRONT Media Inc., is valued at more than $336 million over the next decade.

In the deal, Metro locked in a 25-percent increase in guaranteed revenue that can be used to fund Metro service and keep fares affordable for customers over the next 10 years.

An additional 1,500 new digital screens will be installed within five years, expanding Metro’s digital network from 400 screens to 1,900 covering all Metrorail stations. Each digital screen generates up to four times the revenue of the static display it replaces.

The new agreement with OUTFRONT continues the firm’s relationship with Metro, and includes the ten-year base contract, plus two five-year options. With options included, the contract has an estimated value of $812 million over 20 years, including:

  • $325 million guaranteed to Metro in the ten-year base contract, plus 70 percent of all revenue once each year’s guarantee is met
  • $1.1 million investment in technology infrastructure to support a state-of-the-art digital screen network
  • $10 million in capital funding for advertising assets, and 30 percent funding support for ongoing capital projects to provide:
  • 1,500 new 65” LCD LiveBoards in the first five years of the contract
  • 24 LCD ribbons at escalator banks
  • Large-format LEDs in selected locations

Advertising is a significant and growing component of Metro’s (non-farebox) commercial revenues with revenue to Metro consistently exceeding the annual guarantee payments. These funds support operational expenses and help Metro stay within the legally mandated 3 percent annual subsidy growth rate.

View comments or post a comment on this story. (0 Comments)

More News

Feinberg named interim president of NYC Transit

The MTA Transit Committee Chair and former Federal Railroad Administrator will begin March 9, while the agency conducts a search for a permanent chief.

IndyGo sees 8% increase in systemwide ridership

Additionally, Red Line BRT ridership was 6% higher in January than in December.

RTC of Washoe County selects new executive director

Bill Thomas replaces RTC's former Executive Director Lee Gibson, who retired December 2019 after more than ten years on the job.

MARTA appoints second-in-command for bus, rail operations

Santiago Osorio will serve as deputy chief, bus operations, while George Wright was promoted to deputy chief, rail operations.

Calif. agency breaks ground on new bus transfer station

Santa Clarita's Vista Canyon is the result of a community-involved effort that focused on creating a transformative mixed-use development.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation