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May 16, 2005

Are CD-Burning Kiosks Profitable?

Yahoo: Here's an interesting article about the total quagmire that the kiosk industry is experiencing, trying to help boost revenues for the flailing music industry.  You'd think that with successful rollouts (i.e. Starbucks and Wal-mart), the labels might see a light at the end of the tunnel as far as providing customers with access to a broad selection of music for in-store burning that will deliver immediate gratification while requiring no extra stocking or inventory for the retailers...But evidently, retailers say that in-store CD manufacturing still has one big problem - it's an unprofitable business model...

But wait, let's look at the whole picture...Public statements made by HP indicate that in-store purchases of personal compilation CDs at Starbucks pilot stores has led to increased sales of pre-recorded physical product at those locations. Taking it one step further then, it's also feasible to expect that the sale of digital downloads from other similar in-store kiosks will increase the sale of physical pre-recorded product at those retail locations too... Am I missing something here?  Why aren't the labels being more cooperative and flexible to make this happen ASAP? "Each content company has its own set of rules, which when explained makes sense. But when you put them all together, it's a mess" -- and an expensive one." So, what are they afraid of? How is the risk any different from consumers downloading music from an online store from their house...In their usual lack of responsiveness to rapidly changing market conditions, it sounds like the labels are going to miss out (again) from a chance to earn new revenues from an untapped market segment.  They can complain about piracy all they want, but burning a disc at a store is theoretically no different that burning one from the comfort of your home or office - which they've finally starting endorsing...Get with the program, loosen the reigns a bit...Just Keep it Simple and Sell Some Music!

Posted by Todd in General | Permalink

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Comments

This can be truth in "First world", but in countries with 10% to 20% of digital inclusion, with majority of population without internet access, in-store CD burning kiosks can be very more profitable!.

We are starting a model of kiosks for Brasil, may be after for Mexico and Latin America in general.
Our real conditions are different to Europe or USA, and will be so for some years (or decades?).
Jorge

Posted by: jorge alberto catino | Nov 29, 2005 9:02:58 AM

ORANJESTAD, Aruba - Felix rapidly strengthened into a dangerous Category 5 hurricane and churned through the Caribbean Sea on a path toward Central America, where forecasters said it could make landfall as “potentially catastrophic” storm.
Felix was packing winds of up to 165 mph as it headed west, according to the U.S. National Hurricane Center. It was projected to skirt Honduras’ coastline on Tuesday before slamming into Belize on Wednesday.
“As it stands, we’re still thinking that it will be a potentially catastrophic system in the early portions of this week, Tuesday evening, possibly affecting Honduras and then toward the coast of Belize,” said Dave Roberts, a hurricane specialist at the center in Miami.

Posted by: Ignopossy | Sep 3, 2007 10:23:20 PM

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