—Hewlett-Packard, which launched its centralized MOD business, sold its MOD factory but is continuing to offer back end MOD services through Trans World Entertainment..it did a tie-up with on-demand DVDs for Sony Pictures Home Entertainment primarily older and more obscure titles. Very long tail, but this isn’t a kiosk-based service.
—MOD Systems, which is pilot testing music burning and downloading on kiosks in some Best Buy and Circuit City stores, is holding off on including video in its kiosks until it has major studio content.

The issues: as one of the execs quoted in the story says: “old model of burning movies to DVD only wasn’t profitable and was a solution for ‘yesterday’s problem,’ rather than addressing the changing way people consume movies and music.” These machines also require a significant upfront investment, something smaller companies can’t do…others also blame a lack of major studio content for making it difficult to sign on major retailers. Also, more immediate issue: retailers are generally unwilling to try a new technology in the all-important fourth quarter.