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Flix on Stix to Deploy Thousands of Units By Year’s End

6 Jan, 2011 By: Stephanie Prange

Flix on Stix, the Corona, Calif.-based company with kiosks that download movies and other content to consumer’s memory sticks, has lined up major studio and brick-and mortar partners for a planned deployment of 20,000 units by the end of the year.

The kiosk company plans to deploy in a major movie theater chain as well as at college campuses and other outlets. Home entertainment rentals and sales have been experimented with in movie theaters, but have never before been widely deployed in theaters in the United States.

The key to getting a deal with the studios was perfecting the company’s encryption technology, according to spokesperson Randall Huft.

Also, the studios see Flix on Stix as a type of video-on-demand, rather than as a traditional rental kiosk, he said, allowing it to escape the kind of windows imposed on companies such as Redbox and Netflix.

Flix on Stix plans to launch the first 5,000 kiosks by May. Consumers can download a title to a memory stick and never have to return to the kiosk. The title expires anytime from three days to a longer period chosen at the time of download. Rental prices range from 1 dollar to 3 dollars per day.

The kiosks hold about 1,500 titles, but a consumer can go online to request a title be available at a particular kiosk 24 hours ahead of time. Digital files — which take two to three minutes to download for standard definition and five minutes for high-definition — can be viewed on a PC, Mac or certain other set-top boxes.

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