Hey Thnx milestone; looks like they're marketing the tipmotion to the biggies... Just hope the carriers can garner revenue via avot before the likes of these take over multimedia on mobile phones.

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And -

Toshiba and partners plan movie downloads to SD cards

NCR, MOD Systems to place digital kiosks at retail in early 2009

By Jennifer Netherby -- Video Business, 9/25/2008

SEPT. 25 | In a move that could give bricks-and-mortar retailers a major role in digital downloads, Toshiba Corp. is partnering with DVD kiosk companies NCR Corp. and MOD Systems on a new delivery method that could make it easier for consumers to download and watch digital movies.

The three companies will announce today plans to make SD flash memory cards, the same used in digital cameras to store photos, the standard format for storing digital movie and TV show downloads.

MOD also has raised $35 million in a first round of venture funding led by Toshiba and NCR, which will take minority stakes in the startup.

Toshiba is expected to roll out a line of set-top boxes early next year with SD card slots for playing back digital video downloads saved to the memory cards. ATM maker NCR, which has swiftly expanded into the DVD kiosk business this year, will pact with digital kiosk company MOD Systems to offer movie and TV show downloads onto SD cards at digital kiosks it plans to roll out to stores in the first quarter of 2009.

If all goes as planned, consumers will be able to go into stores participating in a pilot launch next year, download a movie from a kiosk to their SD card and play it back on their mobile phone, portable video player, TV or other SD-compatible device.

“The premise of this is really simple,” MOD Systems executive chair and co-founder Anthony Bay said. “Right now we have incompatible devices and no standard storage formats [for downloads]. SD is the logical standard. It’s an open standard, tens of millions of products are already made with SD card slots. The premise of all of this is there needs to be a standard. We can’t afford another proprietary thing.”

SD (secure digital) cards are already widely used in digital cameras, PDAs, laptops, mobile phones, videogame consoles and other digital devices. Earlier this week, SanDisk and the major music labels announced a plan to make microSD the new standard format for music, replacing the CD.

SD cards can support Windows Media digital rights management, which is already used on video downloads from Amazon, CinemaNow, Movielink and other download companies, with the exception of Apple iTunes, which uses Apple’s proprietary DRM. The cards also will support whatever open standard comes out of the Digital Entertainment Content Ecosystem (DECE) LLC, a consortium of studios, retailers and consumer electronics companies formed earlier this month to ensure universal playback of digital downloads, Bay said. Toshiba is a member of the group.

Key to the SD kiosk rollout will be securing major studio content, which digital kiosk companies have so far been unable to do.

MOD and NCR wouldn’t say whether they have any studio licensing deals, but they said they expect to offer 4,000 films from studios at launch. InitialDownloads will initially be in standard-definition.

In a statement on the partnership, Toshiba corporate VP and Digital Media Network president/CEO Yoshihide Fujii said SD cards will offer consumers more flexibility and portability.

“MOD Systems holds a level of technical expertise unmatched in this space, and its highly innovative digital content distribution platform is a key component of our new media strategy for migrating consumers to digital,” he said.

The expanded partnership between MOD and Toshiba comes as MOD faces a lawsuit from Warren Lieberfarb over consultancy fees he claims he is owed for introducing the two.

NCR’s stake in MOD follows its move into the DVD kiosk space this summer. The company acquired minority stakes in kiosk maker E-Play and No. 2 DVD kiosk company The New Release/Moviecube, for which it plans to make as many as 1,400 new kiosks by 2010. NCR also has a deal with Blockbuster to make as many as 10,000 Blockbuster-branded kiosks that will rent DVDs and likely offer downloads.

NCR will use MOD System’s Retail Enterprise System to manage content for its digital download kiosks as part of a non-exclusive deal. The self-service digital kiosks will offer download to SD cards and portable devices.

“Our initiative with MOD Systems is designed to offer consumers one of the fastest, most convenient ways to access high-quality digital entertainment,” NCR chair and CEO Bill Nuti said in a statement announcing the deal.

NCR will be MOD’s primary method of deployment, getting the company’s system into more retailers and locations than it has been able to get access to thus far. MOD has offered music downloads in a handful of Best Buy and Circuit City stores on a trial basis.

The company has been working for studio licensing deals to burn movie downloads to DVDs through its kiosks. MOD still wants to offer DVD burning, Bay said, but he believes it might be easier to get deals for downloads that can be transferred to SD cards. He said he believes studios will license the same content that is available online for download to MOD and NCR for transfer to SD cards.

All three companies said they plan to offer more details on their digital plans over the next few months and at the Consumer Electronics Show in January.