" Two years ago, Rishi Shah and Derek Moeller were economics majors at Northwestern University batting around ideas for a business plan competition in professor William J. White's engineering entrepreneurship course. "Today, the two are dropouts - running their own startup with the backing of White, a former chairman and chief executive of Bell & Howell, who, along with their families and others, anted up $700,000 for their venture.
Their business, ContextMedia, distributes educational videos to doctors specializing in diabetes.
The free programs, interspersed with drug and medical-equipment ads, are then shown in waiting rooms.
Shah, 22, says he and Moeller, 24, have installed more than 350 screens in the practices of 1,500 physicians and expect 6 million patient views in 2008.
Revenue comes entirely from ads, which work out today to about $4,000 per screen annually.
ContextMedia will break even with $2 million in sales this year, says Shah, and expects to be profitable next year.
Source: BusinessWeek
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