A testimony to how ingrained wireless has become in popular culture, today consumers can purchase advanced mobile content-ring tones, graphics, games-as easily as they can buy a Diet Coke or Milky Way bar from a vending machine.
Recent news surrounding mobile kiosks, or vending machines that spit out wireless services, shows that they are likely to become more pervasive in the future.
SmartServ Online Inc., for example, last week said its subsidiary nReach has partnered with Merit Industries to introduce self-serve mobile content vending-machine products nationwide.
nReach provides mobile ring tones, graphics, games and applications. Merit is a touchscreen entertainment devices company.
The vending machines will feature licensed content such as ring tones from American Idol, The Matrix, Eminem, Britney Spears, 50 Cent, The Beatles, Elvis Presley, 2Pac, Snoop Dogg and Frank Sinatra. They also will include images as well as games, such as Tom Clancy’s Splinter Cell and NHL Power Shot Hockey. The machines will allow customers to sample and purchase the content using Merit’s touchscreen technology. Once the customer has completed the purchase, the product is sent over the air to their mobile phone.
“Personalizing mobile phones was previously only available through a phone handset or the Web, which limited opportunities for consumers and content owners,” said Mike Stemple, nReach’s president and founder. “nReach vending machines will create new revenue opportunities for content owners-movie distributors, record companies and game developers-by reaching customers with ring tones, graphics and games, who would not otherwise be exposed to such content.”
nReach said it plans to place its vending machines at wireless retailers, airports, train stations, restaurants and electronics stores. In addition, Merit has about 6,000 existing amusement machines that are capable of delivering nReach’s content.
SmartServ acquired nReach earlier this month, allowing SmartServ to target a large consumer base through nReach’s marketing agreements with retail giants like Best Buy, RadioShack and CVS. The merger also gives nReach a solution for distributing content into the carrier and enterprise channels.
Coinstar Inc., known for its kiosks that turn coins into cash, recently joined the mobile vending-machine space when it began offering prepaid services, including prepaid wireless services, on its network of kiosks. The company strengthened its foothold in the space earlier this month with its acquisition of CellCards of Illinois L.L.C., which brought its total number of distribution points to 25,000 in North America.
The acquisition was critical for Coinstar because CellCards brought with it direct relationships with the wireless carriers, whose services Coinstar wanted to offer from its kiosks. “Our goal is to be the ultimate distribution point for these products,” said Steve Verleye, general manager of electronic payment solutions at Coinstar.
Coinstar’s biggest customers include grocery store giants Kroger and Albertsons. The company recently announced it plans to add its services to nearly all Albertsons locations, totaling more than 2,000 distribution points, by March 2005. In addition, with the acquisition of CellCards, Coinstar gains multi-year contracts with national drug store retailers CVS, Eckerd’s and Walgreen’s.
Self-service kiosks offering prepaid services are an attractive proposition for retailers, explained Steve Verleye, general manager of electronic payment solutions at Coinstar. Coinstar installs and maintains the machine, while the retailer collects a revenue share and an opportunity to increase store traffic. Coinstar also offers e-payment services though in-lane checkout counters, which requires some cashier training.
Consumers find convenience in the locations of Coinstar’s solution, explained Verleye, and as more services are offered on them he expects consumers to become even more comfortable with making purchases from them. In addition, as national players join prepaid-focused companies like Virgin Mobile and Boost in offering services, customers will become more familiar with the business model.
In Europe, for example, where prepaid wireless is much more widespread, self-service kiosks have been popular, Verleye said. Coinstar pilot programs in the United Kingdom have produced 30 to 40 times the number of transactions per day that similar U.S.-based kiosks produce.
Finally, Info Touch Technologies Corp., yet another company in the mobile kiosk space, recently announced an agreement with Exxon Mobil Oil Corp. to deploy and manage 41 self-service automated touch screen terminals in Tiger Market stores in Memphis, Tennessee.
The terminals, powered by Info Touch’s SurfNet Premiere software, offer customers services including Wi-Fi access, prepaid telecom services and mobile-phone content, in addition to bill payment by cash or credit card, money transfers and money order purchasing.
