October 26, 2006

Music kiosk - MOD signs a new retailer

MOD Systems signs a new retailer (identity undisclosed but not in Minneapolis) and has new method for downloading from kiosks to handhelds wirelessly (and still satisfy DRM). Secure DVD burning is now facilitated and they have a new incoming board member (Warren Lieberfarb known as father of DVD).

Retail Kiosks Dispense Custom Digital Tunes

By Laurie Sullivan, TechWeb Technology News

CDs and DVDs hogging retail shelves could go the way of free glassware at the gas station.

MOD Systems Inc. has developed software that lets consumers download and pay for digital content from kiosks directly onto portable media players--with no cables attached.

The software for kiosks will serve up music, movies and video games and more, but MOD Systems Chairman Anthony Bay said the first undisclosed retailer to deploy the system early next year will offer tunes. The news was released Tuesday at the Digital Hollywood Fall conference in Santa Monica, Calif.

"Retailers are looking for technology to help them make a move toward offering more digital content in stores," said Anthony Bay, MOD Systems chairman. The software lets consumers choose individual songs for download to digital media player or burn to a CD.

Not only does the software give consumers more choices for digital music, but it also frees up shelf space for fast-selling items without completely eliminating slow-moving content from stores. Analysts also believe the kiosks will reduce product returns.

Less inventory and more choices could help retailers improve razor-thin profit margins by reducing capital tied up in physical inventory that could sit on the shelves for months.

"Brick and mortar big-box and specialty music retailers by necessity need to grab onto a piece of digital music sales or their time on this planet is limited," said Aram Sinnreich, managing partner of Radar Research LLC, Los Angeles. One example he gave: Music retailer Tower Records, after 46 years in business, was sold to a liquidator earlier this month.

The demand for digital music is growing. U.S. sales of digital singles rose 71.3 percent, to 286.3 million between January and June 2006, while the numbers of CDs, DVDs, vinyl records, cassettes and other physical music formats shipped declined 15.7 percent to 277.6 million from the year-ago period, according to the Recording Industry Association of America (RIAA).

rest of Techweb article

Info on Digital Music News

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Posted by staff at October 26, 2006 07:55 AM