AVT, Inc. (formerly Automated Vending Technologies) (Pink Sheets: AVTC), announced today that it has formed a joint venture with UDM (United Digital Media), located in Palm Springs, Ca., to guarantee monthly payments to vending operators who have purchased and placed AVT digital signage equipped vending systems at qualified locations.
"Those deploying an AVT manufactured vending system equipped with AVT's Digital Advertising Signage Equipment can each be eligible to be part of the AVTi Media Network, which involves payments starting at $50 per machine per month," states AVT founder Shannon Illingworth. "We are so confident that our PC based advertising vending systems will increase the awareness and marketing ability of products, services and branding that AVT and our advertising partners are willing to prove it by paying for it."
"Those deploying an AVT manufactured vending system equipped with AVT's Digital Advertising Signage Equipment can each be eligible to be part of the AVTi Media Network, which involves payments starting at $50 per machine per month," states AVT founder Shannon Illingworth. "We are so confident that our PC based advertising vending systems will increase the awareness and marketing ability of products, services and branding that AVT and our advertising partners are willing to prove it by paying for it."
Our take:
Fronting the money for the equipment needed to roll out a digital signage network is nothing new. Neither is paying host venues for the privilege of doing so. In fact, that's a pretty old business model (within the context that our entire industry has been around for just a bit more than a decade now). And the reason it was abandoned? It doesn't work. Yes, the cost of rolling out a digital signage network has never been lower than it is now. And yes, more people are finding success with their business models. But that's largely because they've learned from massive failures like Next Generation Networks (NGN), who spent a huge amount of money building out venues, leaving nothing for the lean times when they weren't able to sell ads.
While we hope AVT has had the good sense to research this model and ensure that their operating cash flow and cash reserves are sufficient to get them past these lean times, we'd bet that's far from a sure thing.
Subscribe to the Digital Signage Insider RSS feed