Agreement Includes Committed Financing for the First 1,500 Units
Public Media Works, Inc and its whollyowned subsidiary, EntertainmentXpress, Inc., announce an agreement with Modular Conversions, LLC to place up to 7,000 DVD movie and game kiosks in new convenience stores as major oil company-sponsored gas station conversions are completed over the next three years across the U.S. The initial phase includes full funding for the installation of up to 1,500 EntertainmentXpress kiosks to be placed in prime West Coast targeted locations. Modular Conversions, a construction management services firm working with major oil companies, is a specialist in a modular approach to bay conversions for high-traffic filling stations (www.modularconversions.com).
Modular Conversions created the turnkey concept for the “C-store” conversions with exterior construction and a modular interior store design that includes all components, fixtures and accoutrements including the EntertainmentXpress DVD kiosk as a part of the proposed turnkey package.
These programs provide a pre-approval for financing for filling station operators who sign on. Financing for the conversions, over and above what may be subsidized by the oil companies, has been arranged by Modular Conversions through private lenders and a mutual fund, according to the construction company’s COO, Jack Neal.
“We have launched a multi-billion dollar project to convert bays to convenience stores for owners of major oil company brand filling stations across the U.S. who subscribe to the program. It is a very exciting project that will bring huge brand value for oil companies and a significant increased revenue opportunity for the independent station operators. And as part of our overall funding arrangements for this venture, we are planning to allocate up to $154 million to fully finance as many as 7,000 kiosks placed and operated by EntertainmentXpress,” according to Jack Neal.
EntertainmentXpress, a division of Public Media Works, provides a convenient way for consumers to buy or rent movies, games and other entertainment media through kiosks located in quick-serve food locations, grocery stores and other high-traffic, public venues. The company’s business plan also includes an out-ofhome advertising model with onboard 3D screens (no glasses required) in kiosks that provide its retail partners an opportunity to share in ad revenue as well as in DVD rental and sales revenue.
“Choosing the right business partners in this venture is critical,” continued Jack Neal. “And after taking a hard look at the others out there, we selected EntertainmentXpress to be our exclusive DVD movie and games kiosk provider. There’s no doubt that EntertainmentXpress stands out among the others with the most contemporary approach, including movies and video game rentals, digital download capabilities, plus a built-in 3D flat screen for in-store advertising that allows our station owners to share in both the DVD and advertising revenues. This kiosk should represent the most profitable square footage in their stores,” stated Jack Neal.
“There is no question that executing on this opportunity puts us on the map as a significant new player in the highly profitable and fast-growing entertainment kiosk industry. And it is most gratifying that we were able to be creative enough to beat the odds of a tough economy with a partnership that includes financing as part of the package. To me it’s a great story of how businesses can work together to create alternatives to work around the scarcity of traditional financing,” states Bill Zabit, President of Public Media Works.
About Public Media Works
Public Media Works, Inc. was founded as a forward-thinking entertainment company, created and operated by entertainment professionals, with the objective to discover, create, develop and distribute entertainment content to world audiences. The EntertainmentXpress subsidiary of Public Media Works is rolling out a network of conveniently located self-service kiosks which deliver demographically relevant digital media content to consumers. The company’s core business model focuses on the high-volume rental and sale of DVD movies, video games and other media through kiosks located in quick-serve restaurants, grocery stores and other high-traffic, public venues. Features intended to differentiate EntertainmentXpress in the marketplace are expected to include a broader variety of digital product offerings over time, retail partner branded kiosks, a fully integrated solution for in-store advertising, and kiosks designed to be converted into media filling stations to a variety of digital storage devices.
Public Media Works Corporate Offices
2330 Marinship Way Suite 300
Sausalito, CA 94965
Company Contact: 415 729.8000
For Investor Relations Contact
Salzwedel Financial Communication
Source: Public Media Works