The Stinger Report has become a regular visitor to the Vending, Kiosk and Electronic Point-of-Sale (e-POS) industry gatherings. The writing has been on the wall for some time that a convergence of thinking in the way these Out-of-Home service providers would develop their future products, and the stark realization that even though the amusement scene has been trying very hard to avoid non-cash payments -- like King Canute, it will not be able to hold back the on rushing tide.
This year's KioskCom Europe Expo 2007 celebrated its third year and a strong attendance to the November event (1,303 international attendees visiting 80 booths). The broad church of kiosk manufacturers and suppliers were split clearly between the hardware, the operation software, the Digital Retail and the new technology.
Right from the start the event heralded the changing landscape, and the inherent danger for amusement.
Kiosk Information Systems -- the leading worldwide self-service kiosk developer (North America's largest kiosk producer) showed a wide selection of their information, photo and finical units but pride of place was given to their new endeavors.
The company showed the Internet and gaming kiosk, the 'ZAZOOX Station' (PC Hardware). The system is no stranger to the Stinger, covered in our AMOA'06 show report (#515), the company's first foray into the UK sector was marked by the KioskCom attendance. Speaking exclusively to the Stinger, an executive working on ZOOX market penetration spoke on their current strategy.
Currently a 500-unit penetration sees the system in Army bases, Truck Stops, Hotels and Retail environments. Fundamentally an Internet station that also can play games, offering a static audience a chance to surf or play; the ZOOX unit supports normal and e-payment methodologies, but the smarts reside in the operational model
The system acts as a downloadable kiosk, with a dynamic games capability. The ZOOX incorporates a selection of the most popular PC and Console games that has been specifically site licensed, including Microsoft, UbiSoft and others. This is one of the few connected game terminals that have undertaken this requirement, separating them from the grey and purely illegal consumer games application in Public Space.
The ability to be dynamic means that Kiosk Information has remote monitoring of their deployed hardware (what the vending industry has already named 'Telemetry'). This access to operational field stats can shape the software installed remotely. For example an American Army barracks could be Medal of Honor and Counter Strike game heavy. While a Hotel complex could see kids wanting more Flash and FaceBook applications. Back at head office the telemetry software can help populate the correct content to suit the audience.
For Kiosk Information, they see a model where an operator buys a machine, which is maintained remotely by them, the venue paying a monthly operating fee, and sharing in e-cashbox machines. Regarding the fielding of the machine the executive stated -- direct sales to the operator/location is best.
The company has initially abandoned the distributor route. Attendance at previous amusement events and presentation to leading distributors achieved interest but no viable business model. The executive complained of the mark-up some amusement sources placed on their machine for no support. Echoing a recent Stinger feature, distribution for unique business models can be more difficult than beneficial. The company favoring a direct model that allows their unique software model to work.
This unique telemetry pointed to a future that could so easily encroach on amusement.
Returning to the KioskCom event, we see an interesting move towards new technology in retail, along with the automated produce registries, the application of self-service checkouts – one new design was the application of shelf-based TV screens with a special in-store channel to promote ranges of products.
The involvement of conventional amusement business was best displayed by many of the exhibitors such as eurocoin (showing their range of printers and validators), Suzo (showing their spares range for the self-service scene) and others from the touchscreen sector like 3M. Another company like the developers of the ZOOX, that is ploughing their own path rather than trying to shape existing industry methodologies to suit their needs -- Felix Group famous for their 'Everyone's a Winner' platform now showed their full suite of proprietary software.
The revenue driver, the company offering a flexible platform that incorporates whatever the client wants. Systems now out on trial, looking towards a major installation, include T-Mobile retail outlets. The mobile phone stores have the Felix system including Top-Up facilities to buy additional units of time to phones. T
he experiment utilizes the Felix unique Telemetry feature so that T-Mobile can observe customer utilization, and add features. Another retail installation is with electrical goods seller Currys Digital, 5 kiosks on test at this retailer. The evaluation will lead to Felix selling a licensed package tailored exclusively to their needs -- in the retail sector offering a cost-effective way to sell services and free-up staff (warm bodies).
Felix executives showed the Stinger representative their system's array of content and services including jukebox capability -- their service supplied via the Broadchart network. These kiosks incorporate what the company called 'Digital Retailer', or what other may see as electronic vended services, ATM, e-POS and photo printing just some of the features; these items able to be supported by e-payment. Along with credit cards, the systems are now starting to be deployed with cashless payment card support, looking towards a day when key fob style top-up cards will be used as already seen in the US to purchase gas.
Felix was favoring the direct route to buyers, having found the amusement distribution model too much of a closed shop. Difficulties came upon when selling their game and jukebox services as they found some operators had special affiliations with some manufacturers of jukebox standalones. Also the whole issue of e-payment is received coolly in a sector rife with skimming and is not keen to see documented non-cash transactions.
The portable touchscreen-tablet wireless platform finding favor in the retail and remote working sector was displayed at the event as a system that offers a cutting-edge appeal, demonstrated on the Portamedia booth. This technology's appearance was reminiscent of the TouchTunes Music ‘PlayPorTT' system, or the proposed Merit Entertainment ‘Firefly' system, all unveiled for the amusement scene at AMOA'07.
The reality of the eventual convergence of amusement and digital retail was illustrated by Irish company APW Galway. Their impressive 'i-engage' kiosk offered a high level of functionality, but next to this was an example of their Fixed Odds Betting Terminal (FOBT) that they build though their contract with distributor Leisure Link (owned by IGG), with over 5,000 units deployed in Licensed Betting Offices such as Williams Hills. The development of a gaming experience in what is fundamentally a configured kiosk unit is marking the validity of the AWP as a viable system in the face of telemetry equipped touchscreen alternatives.
It was a chance discussion with executives at the leading kiosk manufacturer Public Computing that placed everything into perspective regarding crossover futures.
It was revealed that over 25,000 kiosks per year for banking are manufactured by the company, representing the majority of their business -- followed by hospitality, casino and retail. It is the education of the public to use Self-Service systems in banking that will both familiarize and make acceptable to interaction with e-POS.
From this point, a market acceptance and audience familiarity will grow. PC stated that the majority of their kiosks are going out the door with broadband, but now Wi-Fi and GRPS functionality -- this telemetry data immeasurably valuable to the market to shape future.
What Could this all Mean:
Finally the validity of the argument regarding convergence was born out in the exhibitions future plans! The event next year will now be known as the 'Self Service Expo Europe 08'!!
News Story with thanks to Kevin Williams. Please visit www.thestingerreport.com for others.
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