XOX, DGB FINALISE JV AGREEMENT TO DEPLOY AI VENDING MACHINES

KUALA LUMPUR, June 15 -- XOX Bhd’s wholly-owned subsidiary, XOX Media Sdn Bhd has finalised a joint-venture (JV) agreement with DGB Networks Sdn Bhd in a 50/50 net profit-sharing partnership for the media management and advertising platform from the deployment of DGB's artificial intelligence (AI) vending machines.

DGB Networks intends 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 US$11 billion 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 Europe, and it is a matter of time before it becomes a global phenomenon,” he said in a joint statement released to Bursa Malaysia today.

Both companies entered into a memorandum of understanding on April 16.

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 extensive advertising and media distribution network, which both the companies intend to monetise, Wong said.

Meanwhile, XOX executive director Roy Ho said: “This deployment of smart vending machines on our end is a logical move to increase our marketing footprint, by having ownership of our own network of machines.”

However, he said it makes sense to be part of a bigger picture in terms of the advertising network, as XOX seeks to derive additional revenue streams that complement its two million-plus subscriber network.

XOX intends to deploy up to 400 of their own vending machines and DGB has set a target of up to 1,000 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 JV, with advertising revenue shared to the machine owners.

-- BERNAMA