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NCR kiosks may sell DVDs and downloads

Hybrid machines planned for non-entertainment stores

By Susanne Ault -- Video Business, 10/29/2008

OCT. 29 | Kiosk maker NCR Corp. envisions rolling out hybrid machines that dispense both prerecorded DVDs and digital movies to retail in 2009.

NCR is partnered with MOD Systems to deliver kiosks that will allow consumers to download content onto SD memory cards for playback on various compatible devices. The companies expect to start installing these kiosks at unspecified retailers in first quarter 2009. Neither NCR nor MOD has yet detailed what films and TV content will be available for download at launch.

However, NCR is laying down a general strategy for these kiosks’ capabilities, depending on the class of retailer. For non-entertainment stores, NCR hopes to install machines that can do everything in one box. The kiosks will offer DVD sales and downloads onto portable devices and SD cards. NCR also hopes to let consumers buy DVDs from its machines and transfer any included digital copies directly onto SD cards.

Retailers targeted for such hybrid machines include those without hefty DVD selections of their own, such as grocery stores, convenience stores, airports and gas stations, among other non-traditional locations.

“This is about convenience; we don’t want four different kiosks that do different things,” NCR VP of business development Justin Hotard said. “The expectation is that later next year we’ll move toward physical and digital kiosks.”

For those retailers with a significant physical DVD category, machines will be tailored to offer strictly download options, whether that’s onto portable devices or SD cards.

This summer, NCR partnered with Blockbuster to test digital download kiosks in a couple of Dallas locations. That deal is separate from NCR’s plans with MOD Systems’ SD card solution.

Regardless of consumers’ playback preference, whether it’s a DVD player, laptop or something else, NCR/MOD kiosks should satisfy it, according to the companies.

The SD card is already considered a universal content format for digital cameras and mobile phones and has recently been embraced by the music industry to improve upon the CD. Many of Panasonic’s TVs, DVD and Blu-ray players are built with slots for SD content playback.

“We are creating a standard format so people know that when they download something, they can play it on the device of their choice,” MOD vice chairman and co-founder Anthony Bay said.

Bay added that by the time NCR and MOD begin testing their kiosks, multiple studios will have formally signed on to offer content for the machines. He declined to specify the studios.

Toshiba is planning to launch relatively inexpensive $150-$200 SD-reader set-top boxes at the same time that the kiosks are deployed. Additionally, Toshiba plans to roll out SD slot-enhanced TVs and DVD players by second quarter and third quarter of 2009, respectively.

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