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Polar Frog Jumpstarts Adult Kiosks

4 Aug, 2006 By: Erik Gruenwedel

CinemaNow.com recently broke from tradition by offering select adult titles to consumers, who can burn the content to DVDs playable on standard DVD players and PCs. Now, Scottsdale, Ariz.-based Polar Frog Digital has begun distributing standalone self-serve kiosks to video stores and adult novelty retailers that let consumers create custom adult-themed DVDs in-store in about eight minutes.

With a catalog of roughly 9,000 adult titles, the average kiosk offers 3,500 scenes sorted by genre, star, scene and studio (except adult-film supplier Vivid Entertainment) for as little as $5 per burned scene.

For each sale, the touchscreen kiosk dispenses a blank disc that is reinserted into the unit with the average consumer purchasing between four-to-eight burns.

“In two square feet, [a store] gets 700 titles,” said Todd Rosenbaum, CEO of Polar Frog Digital.

The company said content could convert to files playable on Apple's iPod and Sony's PlayStation Portable.

The touch-screen kiosks are available at adult retailers in Portland, Ore., Lansing, Mich., Dedham, Mass., and Scottsdale, Ariz. The kiosks are connected to proprietary servers operated by DreamTank, a Los Angeles-based encoding service.

Kiosk revenue is split 30% to retailers, 33% to content owners, 20% to Polar Frog and 17% to overhead.

“The adult industry has always been the biggest risk-takers regarding new technology,” Rosenbaum said.

Adult film is leading the digital download revolution, said Russ Crupnick, VP and senior industry analyst for the NPD Group, at a recent seminar about consumer habits.

Among consumers who have video files stored on their computers, 23% is adult content, Crupnick said. And of that, the average is 13 different video titles.

Rosenbaum said Movie Gallery was studying the adult concept while Albertsons, CVS Pharmacy and Walgreen's were considering the kiosks for mainstream films and TV content.

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