XOX Media Sdn Bhd today finalised a Joint Venture Agreement with DGB Networks Sdn Bhd in a 50/50 net profit sharing partnership for the media management and advertising platform that will result from the national deployment of DGB’s next generation AI Vending Machines.
DGB Networks Sdn Bhd is intending to deploy a mass market, ownership based model for their smart vending machines. DGB Executive Director Nicholas Wong said, ” The smart vending machine industry has surpassed 11 billion USD globally in 2017 and is expected to grow double digits every year, as more and more people adopt new purchasing habits. The adoption rate has ballooned in Japan and in Europe, and it is a matter of time before it becomes a global phenomenon”.
Smart vending machines apply internal digitisation to manage inventory tracking, surveillance and security, digital touchscreens for interaction with consumers and provide distribution of sundry items in areas where normal kiosks and shops cannot penetrate.
DGB’s smart vending machines come with a 55 inch LED Touchscreen, which will create an extensive advertising and media distribution network, which both the companies intend to monetise.
“We are pleased to be in partnership with XOX, who can provide connectivity, media
content and talent to assist in managing and growing this revenue stream,” Wong
XOX’s Executive Director Roy Ho said, “This deployment of smart vending machines on our end is a logical move for us to increase our marketing footprint, by having ownership of our own network of machines. However, it makes sense to be part of a bigger picture in terms of the advertising network, as we seek to derive additional revenue streams that complement our 2 million plus subscribers network”.
XOX intends to deploy up to 400 of their own vending machines, and DGB has set a target of up to 1000 machines of their own in the next 24 months.
These machines will also be available to be leased or owned by third parties, but the media platform will be owned and operated by the Joint Venture, with advertising revenue shared to the machine owners.
“We are delighted to be part of a joint venture that recognises the potential of an entirely new advertising medium, especially in this digital age where content has become a multi billion dollar business,” Wong concluded.