Connexion Media Limited (ASX:CXZ), an innovator in the connected car market, has signed its first commercial contract with a South American vehicle supplier in a deal that will see the company’s miRoamer product in South American production vehicles from 2016.
The contract will see Connexion use its miRoamer radio and music service to provide a mobile phone solution for motorists. A HTML5 version of miRoamer will be pre-loaded into millions of new vehicle infotainment units purchased by the customer as part of the contract.
Commercial terms of the deal are confidential though it can be disclosed that Connexion will benefit from upfront setup fees, per-unit license fees and ongoing support service fees under the 3-year deal. “This deal is expected to generate hundreds of thousands of dollars revenue. We expect a number of similar deals will follow in South America and elsewhere,” said Connexion Media CEO and managing director George Parthimos.
The miRoamer radio and music service app aggregates global content providers including other aggregators, global AM/FM radio services, a platinum service featuring additional options such as genre-based content and virtual storage of music. Connexion has some direct arrangements in place providing the miRoamer service and also works through large motor vehicle company intermediaries.