digital media kiosk - marriage of traditional marketing and digital content
I find this idea interesting: starting next year, we will see more and more digital content kiosk around retails spaces. Apparently, people still go to shops a lot, and can also use this trip to create their own CDs, buy a movie, or ring tones. The most important thing is that these kiosk are looking into the future when more bluetooth will be in place and purchase of a film should take a few minutes right there on the spot..
Curious what people think of this? On one hands, it sounds like a good plan. On the other, why would you bother to do it in the store if there is Internet?? Privacy issues?
Digital Content Kiosks Rock On
The tremendous success of Apple Computer's iTunes Music Store is breathing life into digital kiosks in retail stores. And not just for video clips and music, but for games, movies, ring tones, and more.
"Digital movies are gaining some momentum, with McDonald's piloting DVD rental kiosks. Cell phone mobile content and DVD-based movie burning are seen as future applications," said Bennett Mason, AIDC senior analyst at Venture Development Corp. "Starbucks has already installed CD-burning kiosks in several locations."
"There is a lot of interest in this emerging application from small and large kiosk suppliers," said Bennett Mason, AIDC senior analyst at Venture Development Corp. "Many consider it a potential "killer app" with strong growth potential."
Mediaport Entertainment Inc., a division of Brazin Ltd., said consumers would be able to purchase and download their favorite songs and digital content in Sanity Music stores beginning in January.
"Three Fortune 500 companies will test them in the near future and we're meeting with another company on Dec. 5 for a 1,500-unit rollout, and got another order today for 150-unit rollout, and we've only been offering the service for 60 days," said Jon Butler, executive vice president at Mediaport Entertainment Inc. on Wednesday at the Digital Entertainment & Media Expo in Los Angeles.
Brazin Ltd., known for its Sanity Entertainment and Virgin Entertainment brands, will roll out MediaATM to its Sanity Music retail stores with more than 600 units slated for deployment during the next year in Australia and New Zealand. Plans are also underway to deploy them outside Brazin's retail stores and into convenience stores, restaurants, and travel centers.
MediaATM, which took four years and $2 million in research and development, is an unmanned CD-burning kiosk that lets consumers buy, download or burn, music, games, books and eventually, cellular phone ring tones and movies to a CD or portable devices equipped with a USB port.
Mediaport is building Bluetooth into the application and expects to introduce the feature in its kiosks by January. One song transferred via Bluetooth technology takes less than 10 seconds. The kiosk will eventually allow consumers to download content to a cellular phone via Bluetooth.
One kiosks costs about $8,500. All content is protected with digital rights management (DRM) software. There is a video screen for advertisers to attract consumers as they shop for digital content. Inside the kiosks sits a standard CPU with keyboard, point of sale system (POS), and CD burner.
The hardware is monitored and digital content is updated from Mediaport's network operating center in Salt Lake City, Utah via the Internet. Each kiosk has its own IP address to deliver content. Without remote monitoring and updates, it would cost more to maintain than to lease the machines, Butler said.
EMI Music reported last month and Warner Music in December 2004 they would make catalogs available in kiosks on college campuses, retail stores and other locations throughout the United States through MediaATMs.
And content distribution to portable devices is quick. A full length feature film, such as Star Wars: Episode III Revenge of the Sith, downloads in three minutes, Butler said. Mediaport is working with movie studios to gain distribution rights.
Francie Mendelsohn, president at Summit Research Associates Inc. said "It sounds good, but come on, three minutes? I'm a little skeptical on the speed."
"One thing's for sure," she added, "We'll kiss CDs goodbye soon because they just don't have enough capacity. The companies that can build in the functionality to the kiosks will be "fat, dumb, and happy when this medium takes off."
Although the market for music, books and movies is emerging, self-service and interactive kiosks show promise. "Entertainment today is nine percent of all kiosks," Mendelsohn said.
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