January 03, 2009

Selling movies in retail store solution

Picture of new concept for selling movies on memory cards. Next week Mod Systems is expected to provide details of new solution. Toshiba and NCR are backers.

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Another Kiosk for Movies on Memory Cards
January 02, 2009 12:05 PM ET | David LaGesse

How movie kiosks might look
This is a look at a potential kiosk for downloading movies from Mod Systems. The company is backed by Toshiba and NCR and will detail next week how it sell music and movies through Internet-connected booths in retail stores.

Toshiba is expected to also demo decks that can play the movies on TVs. The flicks could be played through SD card slots, or through card adapters that plug into USB ports. Existing devices, such as TVs with USB slots, would need software updates to play the copy protected movies.

Here is the press release:

SEATTLE - September 25, 2008 - MOD Systems, an industry-leading provider of digital media delivery systems for retailers, today announced that Toshiba Corporation, NCR Corporation, and others, have agreed to invest $35 million, giving the companies minority stakes in MOD Systems.

The investment is part of an ambitious initiative to leverage breakthrough portable digital storage technology that offers the potential to revolutionize how consumers download movies, TV shows, music and other digital content at a wide variety of locations, and then replay it on multiple devices. The initiative will combine technologies developed by the companies, and is aimed at meeting the explosive demand for easier access to high-quality digital entertainment and other content.

Under the initiative, consumers will download digital content to Secure Digital (SD) cards and portable devices such as mobile phones through kiosks and other self-service devices deployed, integrated and maintained by NCR at retail stores, airports, quick-service restaurants and other outlets. Toshiba will develop dedicated set-top boxes for the service, and develop and market high capacity SD cards for the system, improving the speed of downloads in the future.

The kiosks and other self-service devices will use the MOD Retail Enterprise System for "multichannel" digital media delivery, which enables digital content to be managed and distributed securely using portable devices and portable storage media, including SD memory cards.

"Digital distribution of content to SD cards offers consumers a convenient, faster, more portable way to buy content and access and use their growing entertainment libraries," said Yoshihide Fujii, Corporate Senior Vice President and President and CEO of Digital Media Network Company, Toshiba Corporation. "We're very pleased to join with MOD Systems, an innovative company with unmatched expertise in digital content distribution systems. This investment is key to our strategy for migrating consumers to digital."

"This technology and initiative have tremendous potential," said Bill Nuti, Chairman and CEO of NCR. "We continue to see opportunities to extend our experience in self-service to promising new industries like entertainment. Our initiative with MOD Systems is designed to offer consumers one of the fastest, most convenient ways to access high-quality digital entertainment."

MOD Systems provides retailers with a complete digital media system for consumers to load entertainment to portable devices and storage media, or burn content to an optical format (CD/DVD). The MOD Retail Enterprise System, deployed with leading global retailers, supports all content types and distribution scenarios including manufacturing-on-demand, delivery in optical or digital format, and hybrid online and in-store systems. Video entertainment content will be provided by major and independent studios, which will provide approximately 4,000 titles at the launch of the service. Initial content downloads will be in standard definition, and the service may also be applied to downloads of high definition content in the future.

"Digital media has not been able to truly impact sales at retail and therefore has not become truly pervasive and accessible to all consumers," said Mark E. Phillips, CEO of MOD Systems. "Our goal of creating richer retail destinations for digital entertainment will be furthered with Toshiba and NCR as strategic partners. We are humbled and excited to have leaders in consumer electronics and self-service accelerate our vision for entertainment in retail."

About Toshiba Corporation

Toshiba is a world leader and innovator in pioneering high technology, a diversified manufacturer and marketer of advanced electronic and electrical products spanning information & communications equipment and systems; digital consumer products; electronic devices and components; power systems, including nuclear energy; industrial and social infrastructure systems; and home appliances. Toshiba was founded in 1875, and today operates a global network of more than 740 companies, with 198,000 employees worldwide and annual sales surpassing US$76 billion. Visit Toshiba's web site at www.toshiba.co.jp/index.htm

About NCR Corporation

NCR Corporation is a global technology company leading how the world connects, interacts and transacts with business. NCR's assisted- and self-service solutions and comprehensive support services address the needs of retail, financial, travel, healthcare, hospitality, entertainment, gaming and public sector organizations in more than 100 countries. NCR (http://www.ncr.com/) is headquartered in Dayton, Ohio.

About MOD Systems
MOD Systems provides retailers with a complete digital media system for delivering content to consumers. The MOD Retail Enterprise System enables consumers to fill portable devices and storage media, or burn content to an optical format (CD/DVD). The system also supports hybrid "multi-channel" online and in-store solutions. With an extensive entertainment catalog of video and music, and an interactive touch-screen kiosk, the system allows consumers to shop for and buy the entertainment they want in the places they already shop. http://www.modsystems.com/

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MOD Systems is a trademark of MOD Systems Incorporated. NCR is a trademark of NCR Corporation. All product and company names mentioned herein may be trademarks of their respective owners in the U.S. and other countries.

For more information, press only:

Adrienne Lenhart, MOD Systems, (206) 453-9363, [email protected]

Justin Hall, VOXUS PR for MOD Systems, (253) 853-5151 x 234, [email protected]

Robert (Kelly) Kramer, NCR Corporation, (770) 623-7215, [email protected]

Posted by staff at January 3, 2009 10:06 AM