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Place based music downloads

March 26, 2005

Convenience store retailer 7 Eleven recently told analysts that it is keen to play a role in the music downloading business.
CEO James Keyes believes the retailer can provide consumers with services that include; burning CDs, downloading online music and in the future, video downloads.

Perhaps this will be the future for the store brand CD, like those sold at Pottery Barn and Banana Republic. These retailers might soon introduce kiosks where consumers can choose to download from a variety of different compilation albums, instead of just buying a single CD. This development calls into question Starbucks music strategy of providing consumers with CD burning capability, rather than downloads.

Mediaport is one company that’s developing these kiosks and intends to place them in malls, universities and military bases.

Clearsky Media is another provider of content kiosks designed for wireless content including mp3s.

It seems likely that we will see more and more opportunities for consumers to download content from these placed based kiosks, their competition is likely to come from Wi-Fi networks who will be trying to provide consumers with the same material.

However, with multiple devices using different technologies but looking for the same content, consumers might demand and need both types of distribution.

For retail brands, kiosks might be a great opportunity to provide added value to their consumer base, like 7 Eleven is doing, or to further enhance the brand experience through dedicated branded music download services.

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