With a few initiatives already under way in the last year from redbox and NCR Blockbuster Express, are sell-through DVD Kiosks a good idea?

While their impact on the market is most likely not going to be as dramatic as the kiosk concept was for the rental market, there are certainly productive uses and benefits to be leveraged from the automated retailing of packaged media (i.e. “sell-through kiosks).

Most of NCR’s Blockbuster Express DVD kiosks already have the technical ability to dispense a movie in its original packaging and the company has made recent agreements with studios such as Universal to test sell-through as part of an approach to “give their customers the flexibility and choice they want in their entertainment purchases.”

Two years ago, Coinstar launched Vidigo, which is basically a new kiosk brand, alongside its already famous redbox kiosks. The Vidigo kiosks are quite similar to the regular redbox machines in overall size and design but are black and branded differently. The initial testing is quite limited in terms of number of units installed and geographical reach. However, it certainly displays a willingness by Coinstar to also explore this segment of the market.

Why sell via kiosks?

It’s relatively easy to assume that at least some percentage of customers conducting the millions of rental transactions on kiosks nationwide might be interested to buy a movie as well. And as we know already, the DVD kiosk concept, and redbox in particular, has faced significant challenges with many Hollywood studios in the past. This is understandable since from the studios perspective, what drives their business is a higher amount of discs sold. Hence, correctly or incorrectly, cheaper priced rentals obviously do not seem to comply with that objective. Therefore, the idea of leveraging kiosks to drive more sales of packaged media might be a way to further warm up the studios to some of the benefits of this technology. In fact, previous studies by redbox seemed to indicate that the average redbox renter purchases the same (if not more) amounts of DVDs than non-customers. This can make sense, since many value-driven customers would buy a movie only after watching it and evaluating a first time (ideally for as cheap of a price as possible!) and then decide if they like it enough to purchase it. In that sense, kiosks designed to be capable of handling rental and sell-through could give them a good vehicle to conduct this process.

Another way to look at this concept is through a retailer’s perspective, with the primary idea being a bid to preserve shelf space and valuable store real estate via a more productive way to give the physical media to the consumers. Additionally, theft of higher-priced content (such as games for example), or alternatively the inconvenience caused to customers with a “behind a locked display” merchandising method, are also important factors to keep in mind when evaluating the benefits of sell-through kiosks. In that sense, automated retail technology allows a retailer to grow their product offering while diminishing the shelf space used!

Therefore, it is not surprising for us in our daily business enquiries and consultations to see a growing number of projects under way with various retailers focusing on this next stage in the evolution of the self-service industry!

With customers clamoring for inexpensive entertainment, revenue is soaring for $1-a-day movie rental kiosks, prompting increased demand for DVD vending machines in supermarkets, restaurants and high-traffic locations such as university campuses. Experts predict the DVD industry’s phenomenal growth will continue this year.

Movie kiosks are on track to make up nearly 30 percent of the U.S. video rental market in 2010, according to a recent report issued by the NPD Group, a global provider of consumer and retail market research information.

“Consumers are obviously responding positively to the perceived value of $1-per day rentals, and they appreciate the convenience offered by video rental kiosks,” Russ Crupnick, vice president of industry
analysis for NPD, said in a press release announcing the report.

Download the full whitepaper here:

Tapping into the Automated DVD Rental Kiosk Market

As the market success of various self-service solutions continues to grow, more and more retailers are looking into the benefits from the direct ownership of kiosk networks.

Take the DVD kiosk industry, for example; redbox and NCR’s Blockbuster Express kiosks have already proven its success so various retailers are rolling them out as part of their own store offerings. The general industry practice to date was for a retailer to simply host the kiosks, with an operating partner owning and managing the activities in exchange for a small revenue share arrangement. As business continues to grow, with more sales and profitability coming from such self-service solutions, retailers can now more confidently evaluate the option of buying such technologies and benefit from a larger share of the activities.

Getting ahead of the trend

Many independent, regional or smaller chains are actually at the forefront of this trend. Perhaps partially driven by a more difficult access and availability of kiosks from companies like redbox, these retailers are considering other successful options which for various reasons can arguably benefit them more. Aside from generating better revenues (vs. hosting), the retailers can, for example, brand their DVD kiosks with their own logos, market promotions and advertisements through the digital signage or even sell movies and games that are currently taking shelf-space and represent a theft concern.

Partnering with a manufacturer

In order to achieve such a successful roll-out, the retailer can partner with a self-service solution provider and acquire the technology platform required. Aside from selling the equipment, the technology vendor might also offer a suite of services to help the retailer better manage their network. At iMOZI, for example, we tailor various options for the retail partner that includes most of the technology and operations assistance they require to be as hands-off as possible. This allows the store to benefit from ownership, while easily managing the network without needing to worry about the technology expertise needed to run self-service solutions.

With many known concepts like the DVD Kiosk, established ROI is certainly there to justify such an approach by the retailer – especially if additional creative programs are implemented to leverage their entertainment offering with various cross promotions that generate additional sales of related goods within the store. The self-service industry continues to be a growing part of the future of the retail environment, and thus we can expect new opportunities to continue to emerge for retailers.

Source:

http://www.kioskmarketplace.com/blog/6490/Retailers-benefit-from-having-ownership-of-self-service-solutions

Netflix’s recent decision to split its streaming and mailing services into separate businesses is alienating customers, according to industry analysts, who predict the move may have created an opportunity for DVD kiosk companies such as Blockbuster and redbox to pick up disgruntled Netflix customers.

Only about 15 percent of consumers rent DVDs from both kiosks and by mail, according to NPD research, so it may take some convincing to get Netflix customers to drift to kiosk usage; however, it’s highly possible, according to Russ Crupnick, an NPD entertainment analyst.

“In the short run I do think there is an opportunity for kiosks to reach out to angry (Netflix) customers and engage them,” he said. “But there will be competition for that viewing experience from Watch Instantly, DVR, VOD and other options so it won’t be quite as simple as moving them from one rental option to another. Those days are over; say when Blockbuster closed, a kiosk or (Netflix) was the only option. Now there are many options.”

Who will step up?

Ron Bowers, executive vice president over the Self Service Kiosk division of the Digital Screenmedia Association, said owners of DVD kiosks are probably breathing a sigh of relief over Netflix’s decision.

“Netflix has had an exceptional opportunity to turn their product into a category buster, but they continue to force their business strategy rather than respond to the needs and convenience of the consumer,” he said. “DVD kiosks have a window of opportunity … now, the question is, who will step up and listen to what the consumer is asking for.”

Soheil Samimi hopes his company can have such a story. The president of iMOZI, a DVD kiosk company with more than 300 kiosks deployed in the United States and hundreds more throughout Canada, Latin American, Australia and New Zealand, is confident that Netflix’s recent decision to raise prices and split its mailing and streaming services into two businesses will only help that growth. The company is on pace to have more than 1,000 kiosks in place throughout the U.S. over the next year and is already producing hundreds more for its international markets.

“Perception and consumer sentiment is often a key driver determining where they chose to do business,” Samimi said. “Right now, the No. 1 alternative to Netflix is DVD kiosks, so we can fully expect that some disgruntled customers look towards that option to replace their cancelled membership. One should also not forget about Blockbuster, which following its purchase by DISH, is certainly benefiting from Netflix’s blunders.”

Even before the Netflix price hike took effect and before the company announced it would split its services, consumers were already looking around for a new provider, according to a study conducted by Frank N. Magid Associates Inc., a research-based consulting firm. A week before the announcements, it surveyed 1,000 U.S. consumers, including more than 700 subscribers and more than 350 non-subscribers and found that consumers were already showing a growing interest in DVD kiosks. Findings concluded that 16 percent would likely drop the service.

About 60 percent of Netflix subscribers also use redbox, according to Mike Vorhaus, president of Magid Advisors, who said the study also found that 30 percent of them said they would more frequently rent from redbox because of the Netflix price change.

Redbox announced in July that Q2 revenue jumped 33.8 percent and profits saw a large increase as well. Redbox also announced that it had reached the four million mark in video game rentals.

Although redbox wouldn’t comment on the Netflix split, a Sept. 19 blog post published on insideredbox.com, which isn’t affiliated with the company, asked readers if they thought it was a smart move.

“Netflix, it’s like we hardly know you any more. In a few short months, you’ve gone from beloved to baffling in the eyes of millions of consumers, and today’s news isn’t likely to change that move by Netflix,” it stated.

Although the company’s main competitor Blockbuster Express kiosks, operated by parent company NCR Corp., reported a $17 million second-quarter (ended June 30) operating loss for the kiosk rental business, revenue grew 65 percent to $38 million from $23 million last year.

CEO Bill Nuti said he expects the kiosks to be profitable in 2012 and that the Express business can grow revenue from 10 to 15 percent.

NCR would also not comment on the Netflix split.

Netflix going down?

Netflix shares dropped nearly 19 percent last week after Netflix admitted that it is poised to lose 600,000 subscribers this quarter, ending Sept. 30. The prediction would leave the company with about a million fewer subscribers than it previously told investors to expect.

“We definitely believe that subscription growth at Netflix in the U.S. in the next 12 months will be more modest than Netflix or Wall Street is saying currently,” Vorhaus said. “No doubt some of the folks who cancel Netflix in the months ahead will do it because they don’t want to sign up for both the streaming and the DVD services.”

Those customers have to go somewhere, and Samimi hopes iMOZI can gain some of the business, citing lower prices and easy access as reasons why consumers may go with kiosks.

Reaching out to Netflix customers

Samimi is unveiling a kiosk membership program as part of a new pricing model to “allow consumers to have a physical DVD plan like Netflix, but enjoy the convenience of being able to come and get a DVD any time that they want,” he said.

For example, with a $9.99 per month plan, a customer could get one DVD per day/out on the kiosk network. In theory, someone could watch up to 30 rentals in a month for only $10.

DVD kiosk companies hoping to snag disgruntled Netflix members could always take a page from Blockbuster’s play book. The brick-and-mortar company launched a promotion after the Netflix price hike, giving customers who switched to Blockbuster Total Access a 30-day free trial. After the free trial, customers continue to receive the service for a new price of only $9.99 per month for one disc at a time or $14.99 per month for two discs at a time.

Blockbuster did not return inquiries on the success of the promotion.

“The relationship with Esprida speaks to our continued commitment to utilize highly scalable technology that is supportive of our growth of DVD Kiosk deployments through strategic partnerships,” he said in a press release.

IMOZI ‘s DVD kiosks will now be “Esprida-enabled,” which allows company employees to more easily make advanced processes, automate manual system routines and distribute patches, updates and content.

The technology also provides remote monitoring and diagnostic tools that check the physical status of kiosks, allowing operators to remotely diagnose and resolve potential kiosk malfunctions before they occur. Additionally, Esprida offers enhanced ability for content management and delivering promotional and advertising updates automatically over the network to secondary digital screens.

Source | Kiosk Marketplace

iMozi Canada Inc., a leading provider of next generation self-service entertainment technology, has announced its collaboration with Esprida Corporation, a pioneer in the field of remote device management, to make its automated DVD Kiosk solutions Esprida-enabled™, offering enhanced capabilities and allowing partners the ability to amplify their customer experience.

“The relationship with Esprida speaks to our continued commitment to utilize highly scalable technology that is supportive of our growth of DVD Kiosk deployments through strategic partnerships,” said Soheil Samimi, president and founder of iMOZI. “Esprida LiveControl is a competitive differentiator and a necessary tool in helping us to evolve our business in the market place and remain an innovative leader in the DVD Kiosk category.”

By integrating cloud-based Esprida LiveControl™, iMOZI will be able to successfully provide reliable customer service. Access to a distributed network of complex DVD kiosks makes it easy to initiate advanced processes, automate manual system routines, and distribute patches, updates and content. In addition, creating alerts, scheduling events and applying business rules increases efficiencies in the operational activities.

Esprida LiveControl provides remote monitoring and diagnostic tools that constantly check the physical status of self-service equipment and enables the operator to remotely diagnose and resolve potential kiosk malfunctions before they occur. Additionally, the Esprida solution offers enhanced ability for content management and delivering promotional and advertising updates automatically over the network to secondary digital screens.

“We are excited to be embedded in iMOZI’s automated DVD kiosk solutions and extend our product for the burgeoning DVD kiosk market,” said Anila Jobanputra, president and founder of Esprida Corporation. “iMOZI is an industry leader that shares our same values for innovation and customer satisfaction. We look forward to demonstrating Esprida’s ability to improve the performance of the self-service media kiosks deployed by iMOZI’s customers.”

Esprida solutions are employed by more than 100 leading retail companies and power the world’s largest self-service network under a single infrastructure, controlling more than 150,000 peripherals and devices across five continents, and in 20 languages.

About Esprida Corporation

Esprida is an industry leader in remote management software for self-service, providing Enterprise and Software as a Service (SaaS) product lines that automate and simplify the management of self-service devices. Clients use Esprida software to create powerful business solutions, speed deployment and lower the total cost of operation. Esprida software supports some of the largest self-service deployments in the world, including Kodak and Aisle7. For more information, please visit http://www.esprida.com/

About iMOZI Canada Inc.

iMOZI brings together technology, manufacturing and experience in the self-service entertainment industry to deliver cutting-edge OEM kiosk solutions. The company and its founders are recognized as industry pioneers who have played a significant role in the birth and growth of the automated DVD concept in North America. The company’s mission is to remain an innovative leader in enabling operators to provide the best in physical and digital media, seamlessly through state-of-the-art automated kiosks, online and mobile platforms. For more information, please visit: http://www.imozidvdkiosk.com/

Keywords: Esprida Corporation, iMOZI, remote device management, self-service devices, DVD kiosk, Esprida LiveControl

Source | Sys-con

DENVER, Colorado – TreeHouse Movies, a growing regional operator of DVD rental kiosks that provides movies and video games, has recently launched its first location in partnership with a local Sunflower Farmers Market store.

New release movies can now be rented at the store for only $1.29 a day! Easy, stylish and inexpensive, the DVD vending kiosk is located at the front of the store, allowing guests to conveniently access the latest releases while making their normal shopping trip for groceries. Similar in concept to the well established programs such as Redbox, TreeHouse Movies benefits from the advantage of being local and better focused on the needs of its specific customers and demographics within the region. Furthermore, the service is able to provide new movies that generally are not available as quickly within the Redbox or Blockbuster machines.

“We are delighted to offer our services within a quality retailer such as Sunflower and are
committed to providing the local communities with value and a customized selection suitable to their specific tastes. Our kiosks will deliver a better experience with a greater
selection of new titles,” said John Griffin, Founder and operator of TreeHouse Movies.

The branded DVD kiosks are manufactured by iMOZI, a leading provider of advanced
OEM self-service entertainment solutions. Each kiosk holds up to about 1,000 DVDs,
Blu-ray or Games, and comes equipped with a second digital screen allowing for trailers
as well as local advertisements to be broadcasted onsite.

“Grocery chains across the country continue to expand such entertainment programs for
the benefit of their customers. Our aim is to continue enabling quality operators like
TreeHouse Movies with the technology required to deliver superior kiosk services within
premium retail locations,” said Soheil Samimi, President and founder of iMOZI.

“The look of the customized iMOZI kiosk for our TreeHouse brand was appealing to Sunflower and fits well with the store theme. They agree that shoppers have come to
expect to be able to rent movies from a kiosk in all grocery stores. So we are excited to
partner with them to bring the opportunity for their customers,” Griffin confirms.

TreeHouse Movies is off to a great start and is looking forward to expand its base across
the region in order to service many more locations. Shoppers are welcomed to stop by at
the current Denver Sunflower store and try out a convenient and cheap rental of their
favorite movies! A donation of profits is given to organizations that serve local children.

# # #

iMOZI delivers advanced technology, manufacturing & expertise for the DVD Kiosk business. The company and its partners are recognized as industry pioneers. Our mission is to be an OEM leader in supplying Operators with the best Automated & Digital Kiosks.

COCHRANE, Alberta – MediaMatic Ventures Inc., the largest Canadian network of kiosks that rent and sell DVD movies and video games, continues building the expansion of its network by signing a distribution and support partnership with Ash Payment Solutions to deploy in hundreds of additional retail locations in Eastern Canada.

This agreement will solidify the reach and operational capabilities of MediaMatic Ventures Inc. into many premier stores locations currently served by Ash Payment Solutions throughout the emerging Canadian landscape. The deployment of MediaMatic’s latest generation automated and digital entertainment kiosks, built by iMOZI, will begin effective immediately.

“This is yet again the kind of partnership that allows us to team up with an experienced group and benefit from their strengths. APS has a solid track record with traditional and wireless POS technology, as well as great relationships in place with many retailers who use their systems. As part of our rapid growth plans, we are certainly looking forward to the benefits of the new opportunities that their team will be able to introduce to us”, said Jeremy Ostrowski, CEO of MediaMatic Ventures Inc.

APS is a leader in the payments industry specializing in Payment Hardware, Payment Processing Services, Self-Service Retail Platforms and Technical Support Services. The company will be providing Full Deployment Services such as Installation, Training, Inventory Management, Secure Storage and Hosting, as well as a premium comprehensive Multilingual 24/7 Support Desk.

“It is a great opportunity to participate in the growing self-service entertainment business with an operating partner like MediaMatic who knows very well how to deliver a successful program using a best-of-class technology platform. We know that many of our retail partners are anxiously awaiting to introduce this concept into their locations and to their customers,” said Anthony Hudd, CEO and founder of Ash Payment Solutions in Ontario, Canada.

In addition to already established retail partnerships and many more in negotiations, this distribution agreement will provide MediaMatic access to new partners such as Petro-Canada, Esso Canada, Pizza Hut Canada, The Beer Store, as well as grocers and other fast-food restaurants. The company continues to be focused on growing its capital base and manufacturing partnership with iMOZI in order to ramp-up production and deployments to hundreds of stores in the coming year.

About MediaMatic Ventures Inc.

MediaMatic Ventures Inc. began installing fully automated DVD kiosks in 2006. It currently has an installed base of more than 100 kiosks up and running throughout Canada. Through additional investments, channel sales partners, content providers and retail partnerships, the company is fast growing to become a premier provider of movies, games and other entertainment in North America across its network of next generation automated and digital DVD kiosks.

About Ash Payment Solutions

APS is a leader in the payments industry and a service provider dedicated towards offering reliable solutions for all of your electronic processing needs. Its leading industry professionals are experts in resolving merchants’ payment needs and challenges. Through excellent partnerships with multiple partners, APS is able to offer a complete full suite of services. The company has been in business since 2005 and founded in Burlington, Ontario.

About iMOZI Canada Inc.

iMOZI brings together technology, manufacturing and experience in the self-service entertainment industry to deliver cutting-edge OEM kiosk solutions. The company and its founders are recognized as industry pioneers who have played a significant role in the birth and growth of the automated DVD concept in North America. The company’s mission is to remain an innovative leader in enabling operators to provide the best in physical and digital media, seamlessly through state-of-the-art automated kiosks, online and mobile platforms.

For More Information, Please visit:

http://www.mediamaticventures.com

http://www.ashpaymentsolutions.com

http://www.imozidvdkiosk.com

# # #

iMOZI delivers advanced technology, manufacturing & expertise for the DVD Kiosk business. The company and its partners are recognized as industry pioneers. Our mission is to be an OEM leader in supplying Operators with the best Automated & Digital Kiosks.

COCHRANE, Alberta – November 11, 2010 MediaMatic Ventures Inc., the largest Canadian network of kiosks that rent and sell DVD movies and video games, is aggressively pursuing the next phase of its growth by signing an exclusive manufacturing partnership with iMOZI to ramp-up production and deployments to hundreds of locations in the coming year.

This agreement will ensure the production of the next 500 latest generation automated and digital entertainment kiosks to be deployed by MediaMatic Ventures Inc. into a number of premier retailers across the Canadian landscape, as well into the fast growing U.S. market.

“This partnership will leverage years of experience and innovation by the iMOZI group with regards to DVD Kiosk technology, and combine it with the hands-on operational excellence, customer acquisition and retailer relationships that the growing MediaMatic network brings to the table. We look forward to the addition of their team of experts to help complement our company’s plan for growth and differentiation in the marketplace”, said Jeremy Ostrowski, CEO of MediaMatic Ventures Inc.

Under the current expansion plans, MediaMatic Ventures Inc. has become the largest Canadian DVD kiosk network, with launches planned through new partnerships for the untapped Eastern Canadian market. Furthermore, ongoing negotiations with multiple retailers are under way to introduce its successful program to a growing list of U.S. based locations eager to capitalize on the rapid growth of the concept already well established with American consumers.

“We are thrilled at the opportunity to join forces with another company that has been a pioneer in this space, and more importantly demonstrated a clear track record of operating DVD Kiosks in a profitable manner. We will deliver the best-of-class manufacturing and technology that MediaMatic requires as a leading provider of convenient media to its growing customer base”, said Soheil Samimi, President and founder of iMOZI.

With dedication to stay ahead of the curve, MediaMatic and iMOZI are pleased to complement the traditional physical disk dispensing with an offering to allow consumers to also acquire downloadable digital content from the kiosks directly, as well as online where they can reserve or buy entertainment for their location of choice.

“Despite many forward looking claims by a number of companies, MediaMatic is the only self-service operator currently offering a hybrid mix of physical DVDs, Blu-ray & games, as well as digital movies & music, broadcasted within a WiFi range of 100 yards, via our kiosks operating in Canada. So we intend to continue our innovation with iMOZI and push to deliver better and better content to our customers for many years to come.” Ostrowski confirms.

The iMOZI DVD Kiosk is the most advanced and economically built OEM platform available in the industry, relying on many years of fine-tuning and operational performance through its various applications in the marketplace. A new state-of-art manufacturing centre and continuous drive to deliver enterprise level end-to-end OEM solutions is fuelling a growing list of international customers.

About MediaMatic Ventures Inc.

MediaMatic Ventures Inc. began installing fully automated DVD kiosks in 2006. It currently has an installed base of more than 100 kiosks up and running throughout Canada. Through additional investments, channel sales partners, content providers and retail partnerships, the company is fast growing to become a premier provider of movies, games and other entertainment in North America across its network of next generation automated and digital DVD kiosks.

About iMOZI Canada Inc.

iMOZI brings together technology, manufacturing and experience in the self-service entertainment industry to deliver cutting-edge OEM kiosk solutions. The company and its founders are recognized as industry pioneers who have played a significant role in the birth and growth of the automated DVD concept in North America. The company’s mission is to remain an innovative leader in enabling operators to provide the best in physical and digital media, seamlessly through state-of-the-art automated kiosks, online and mobile platforms.

For More Information, Please visit:

http://www.mediamaticventures.com

http://www.imozidvdkiosk.com

# # #

iMOZI delivers advanced technology, manufacturing & expertise for the DVD Kiosk business. The company and its partners are recognized as industry pioneers. Our mission is to remain an OEM leader in supplying Operators with the best Automated & Digital Kiosks.

SAUSALITO, CA, Aug 18, 2010 (MARKETWIRE via COMTEX) — Public Media Works, Inc. (PUBM 1.50, -0.20, -11.77%) and its wholly-owned subsidiary, EntertainmentXpress, Inc., announce an agreement with Modular Conversions, LLC to place up to 7,000 DVD movie and game kiosks in new convenience stores as major oil company-sponsored gas station conversions are completed over the next three years across the U.S. The initial phase includes full funding for the installation of up to 1,500 EntertainmentXpress kiosks to be placed in prime West Coast targeted locations. Modular Conversions, a construction management services firm working with major oil companies, is a specialist in a modular approach to bay conversions for high-traffic filling stations (www.modularconversions.com).

Modular Conversions created the turnkey concept for the “C-store” conversions with exterior construction and a modular interior store design that includes all components, fixtures and accoutrements including the EntertainmentXpress DVD kiosk as a part of the proposed turnkey package.

These programs provide a pre-approval for financing for filling station operators who sign on. Financing for the conversions, over and above what may be subsidized by the oil companies, has been arranged by Modular Conversions through private lenders and a mutual fund, according to the construction company’s COO, Jack Neal.

“We have launched a multi-billion dollar project to convert bays to convenience stores for owners of major oil company brand filling stations across the US who subscribe to the program. It is a very exciting project that will bring huge brand value for oil companies and a significant increased revenue opportunity for the independent station operators. And as part of our overall funding arrangements for this venture, we are planning to allocate up to $154 million to fully finance as many as 7,000 kiosks placed and operated by EntertainmentXpress,” according to Jack Neal.

EntertainmentXpress, a division of Public Media Works, provides a convenient way for consumers to buy or rent movies, games and other entertainment media through kiosks located in quick-serve food locations, grocery stores and other high-traffic, public venues. The company’s business plan also includes an out-of-home advertising model with onboard 3D screens (no glasses required) in kiosks that provide its retail partners an opportunity to share in ad revenue as well as in DVD rental and sales revenue.

“Choosing the right business partners in this venture is critical,” continued Jack Neal. “And after taking a hard look at the others out there, we selected EntertainmentXpress to be our exclusive DVD movie and games kiosk provider. There’s no doubt that EntertainmentXpress stands out among the others with the most contemporary approach, including movies and video game rentals, digital download capabilities, plus a built-in 3D flat screen for in-store advertising that allows our station owners to share in both the DVD and advertising revenues. This kiosk should represent the most profitable square footage in their stores,” stated Jack Neal.

“There is no question that executing on this opportunity puts us on the map as a significant new player in the highly profitable and fast-growing entertainment kiosk industry. And it is most gratifying that we were able to be creative enough to beat the odds of a tough economy with a partnership that includes financing as part of the package. To me it’s a great story of how businesses can work together to create alternatives to work around the scarcity of traditional financing,” states Bill Zabit, President of Public Media Works.

About Public Media Works Public Media Works, Inc. was founded as a forward-thinking entertainment company, created and operated by entertainment professionals, with the objective to discover, create, develop and distribute entertainment content to world audiences. The EntertainmentXpress subsidiary of Public Media Works is rolling out a network of conveniently located self-service kiosks which deliver demographically relevant digital media content to consumers. The company’s core business model focuses on the high-volume rental and sale of DVD movies, video games and other media through kiosks located in quick-serve restaurants, grocery stores and other high-traffic, public venues. Features intended to differentiate EntertainmentXpress in the marketplace are expected to include a broader variety of digital product offerings over time, retail partner branded kiosks, a fully integrated solution for in-store advertising, and kiosks designed to be converted into media filling stations to a variety of digital storage devices.

This press release may contain forward-looking statements. Such forward-looking statements, particularly as related to the business plans of Public Media Works and its wholly owned subsidiary EntertainmentXpress, expectations of partnerships and strategic relationships, deployment of DVD and video game rental kiosks and 3D LCD screens, the ability of EntertainmentXpress to enter into agreements with retail partners, to gain market share, the ability to sell all 7,000 kiosks under its agreement with Modular Conversions, the size of the market, and the ability of EntertainmentXpress to compete effectively in the marketplace, and the future opportunities of the company, are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the company’s expectations and estimates. Public Media Works and EntertainmentXpress are trademarks of Public Media Works, Inc.

Public Media Works Corp Offices

2330 Marinship Way, Suite 300
Sausalito, CA 94965
Company Contact: 415.729.8000

www.publicmediaworks.com