I believe you are right. It sounds like the studios didn't have much content for Walgreens, and Walgreens wasn't happy with that. I believe Titlematch could have delivered in terms of technology but Walgreens wasn't willing to go forward in any kind of significant way. Their talk of a 200 store trial perhaps was indicative of their desire contingent on having content from the major studios--who didn't come through.
Perhaps there was some talk of deploying a few stores in order to put pressure on the studios, but Aaron and/or Walgreens was not in favor of that, so Aaron left--seeing that with no clear future and the company nearly out of money it just made no economic sense to remain on board.
The thing is, Walgreens has very few pre-packaged videos on the shelf, so I doubt the studios would have had a problem with Walgreens having a kiosk. Rather, they may just not have wanted to give the green light to brick and mortar retailers in general--despite the general CSS approval last fall. If that is the case, Dominos has no more chance of succeeding IMO.
Today Dell announced the availability of the first consumer DVD drive for PCs that is QFLIX enabled, using Sonic's technology. Interesting--and related--only 100 titles are currently able to be downloaded to it. Hmmm...where the hell is the content?!
While the window of opportunity is narrowing for MOD kiosks, I think it is still there, but the studios have to give their blessing, and other than Sony, they appear to not be doing so. Maybe they see bigger fish to fry with kiosk rentals and cable VOD...
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