April 18, 2007

KIOSKS Case Study -- Music Download Burning Kiosks

Nice writeup on latest deals and developments in the music download kiosk scene. The market still remains unclear as the writer notes but we do have to keep track of these things...

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The music-focused kiosk market has been treading water for years, and it remains unclear if a solid business play exists. Even heavyweights like Starbucks have been frustrated by the possibilities,MediaATM largely because of incompatibilities with the iPod and a consumer attraction to home-based music discovery and acquisition. But despite the setbacks, deals and developments continue to emerge. The latest comes from Mediaport Entertainment, a Salt Lake City-based provider of media delivery islands for audiobooks, music, games, ringtones, and other assets. Just recently, the company tied with Power Music, a supplier of workout-related soundtracks and compilations, to push its kiosk solution into fitness centers. The deal leverages existing Power Music relationships, and promised a blend of content from both Mediaport and Power. Gym members can download mixes, and the duo will share a piece of the revenue with the club. "This puts us closer to an anytime, anywhere solution to downloading musical favorites," commented Helen Seltzer, chief executive of Mediaport.

The initiative will run into a number of competitive threats, particularly from iTunes. A typical workout often includes pre-loaded iPod content, pulled from an iTunes synchronization prior to the start of a session. iTunes users can easily createMediaATM playlists featuring high-energy and inspirational songs, though Apple also offers a number of workout-specific mixes through its Nike+iPod initiative. Others will simply tune into any number of televisions planted around the typical gym, though adventurous types may download mixes from Mediaport-powered MediaATMs, especially given the level of customization for body-conscious customers. The group will position 30-minute workouts for $7.99, and individual downloads for 99-cents each. The initial rollout will happen in Utah before a broader expansion in the United States.

Story by news analyst Alexandra Osorio.

Posted by staff at April 18, 2007 02:03 PM