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Richard Curtis on Publishing in the 21st Century

Sunday, January 3, 2010

NYC Pharmacy Chain Installs Kiosks. Today DVDs,Tomorrow Books?

Do books have to be sold at bookstores?

After the introduction last year of the Espresso print on demand press we wondered about that. As we wrote at the time (see I'll Have Four Sesames, Four Poppy-Seeds, and One Copy of War and Peace), "If you think outside the bookstore box, it's not beyond the realm of possibility that, as POD printing technology improves and miniaturizes, tabletop presses could be installed in a Wal-Mart, Macy's or 7-Eleven. You just go to any neighborhood kiosk and browse Amazon or Barnes & Noble or another book retail website, make your selection, enter your credit card and order the book. Finish shopping or get a cup of coffee, then come back and pick up your bound volume, still warm like a fresh bagel. Hey, you can put POD presses in bagel shops too! Just don't shmear lox spread on your newly minted paperback."

Installation of kiosks to support any product is still an expensive proposition when you think about all the technical challenges and support they require. Think for instance about what's involved just to place an ATM - a kiosk that dispenses cash - in a newspaper shop. So, not only must the operation be impeccably smooth over countless uses, it must sell a product in a volume that justifies the use of the real estate it sits on. DVDs are one such product. We wonder if e-books and print books are another.

These reflections were triggered by the recent announcement of installation of DVD kiosks in 200 pharmacies in the Duane Reade chain, a drugstore outfit that has become as ubiquitous in New York City as yellow cabs.The kiosks will be sponsored by Blockbuster, the movie rental giant that is trying to reinvent itself after a media revolution that left it holding a bag full of videotapes. "Now Duane Reade pharmacy customers can get a movie with their next prescription pickup," writes Alex Palmer in brandweek.com. (We're not sure where the kiosk pictured here is installed.)

The rental is $1.00
per day. That's pretty cheap, so cheap that it only plays up how profitable the volume projections must be if two corporations splitting the revenue believe they can make out well. Some other high-traffic chains like grocery leviathan Publix have opted in.“'These are places that consumers are going by every day,'” the Brandweek article quoted an executive for NCR, the company operating the kiosks under the Blockbuster name. “'You’ve got a kid who’s home sick, you can run to the drug store and pick up their medicine and grab a movie, so as they’re sitting on the couch they can enjoy the rest of their day.'"

Okay, now read Blockbuster Kiosks Debut at Duane Reade and switch "book" for "movie" and you will grasp that, as Espresso technology is refined and the machines are miniaturized, a Duane Read or Publix book nook on every corner is entirely within the realm of imagination.

Richard Curtis

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