Article

Photo company sings a new, sweet song

For Mike Parker, Power Interactive Media's vice president of business development, a move down South means warmer weather and a hotter market.

March 27, 2002

Mike Parker may be trading in his wool sweaters for a seersucker suit in the near future. Parker is the senior vice president of sales and business development for Markham, Ontario based Power Interactive Media Inc. (OTCBB: PIAM), a maker of digital imaging kiosks. The Canadian company recently announced plans to build a $7.5 million manufacturing facility near Macon, Ga.

Parker and his family plan to move to Macon within the next year before the new facility is completed.

"My wife loves the sun, so Macon will suit her just fine," Parker said. "My oldest daughter loves horseback riding. That is something she can do all year in Macon. All the people we have met and talked to down in Macon have been friendly and very hospitable."

While Parker's family and about eight others from the company adjust to the culture shock between life in Canada and the deep South, the three-year-old Canadian company plans to grow its business. Power Interactive's kiosks place customers' faces in scenes with well-known individuals and destinations. Licensing deals with the Travel Channel, the National Football League, the National Hockey League and the World Wrestling Federation are already in place. Parker said the physical move offers several benefits.

"We have always thought of ourselves as unique, providing something new and different to the kiosk world," Parker said. "We'll never be a kiosk product company that just produces boxes. Having the `Made in America' logo will increase our exposure within the North American market and will have a positive effect on our stock pricing."

In March, the company changed its name from Power Kiosks Inc. to Power Interactive Media Inc. The public company changed its Over-The-Counter Bulletin Board (OTCBB) listing from PWKK to PIAM.

Georgia on my mind

Power Interactive's new 10-acre site will employ 300 workers when it's completed early next year. The company will maintain a smaller integration facility in Markham, Ontario to service the Canadian market.

Parker said just six to eight staff members from Canada will make the move to Macon, including technical services employees and executives. Power Interactive currently has 25 employees.

A number of relocation and tax incentives provided by Georgia, Bibb County and the city of Macon helped persuade Parker and his company to select the sleepy southern city.

An all-star lineup of sports celebrities was on hand for the May 14 lease-signing ceremony, a front-page news event in Macon. Included were Jean Belliveau, Power Interactive Media's director and NHL Hall of Famer; John Mackey, member of the advisory board and NFL Hall of Famer; and special guest speaker Jack Kemp, consultant to the company, former NFL quarterback and former Secretary of Housing and Urban Development.

An NFL kiosk

Power Interactive's kiosks put consumers in the NFL.

Power Interactive's move to Georgia is partly a result of consumer acceptance of the company's core product, a photo kiosk that puts the faces of consumers into action images, such as a shot of Dan Marino on the run. That was the attraction in January, when the kiosks were a big draw at the NFL Experience in Tampa, a temporary interactive theme park that hypes the Super Bowl and the NFL.

More than 7,000 football fans waited in lines for up to 90 minutes to get a free picture at the kiosks, Parker said. According to a company news release, 90 percent of the consumers thought the target retail price of $5 was a "good" or "exceptional value."

Seth Rabinowitz, director of business development at the NFL, said it was the NFL's second experience with using Power Interactive's photo kiosks at a venue. The first time was a year earlier at a Hall of Fame event. Rabinowitz believes the photo kiosks give the NFL a way to take advantage of its photo assets and provide fans with an added opportunity.

"In Tampa, it was exceptionally well received," Rabinowitz said. "In the hot Florida sun, standing in line for 45 minutes or more is a pretty strong indication that people find something of value. It allows a way for our fans to have some fun with some of the NFL photos. It just puts a smile on your face."

The kiosks

Power Interactive does not sell its kiosks. Instead, the company retains ownership and places the kiosks at various locations such as retail outlets, restaurants and venues. The company shares 10 - 35 percent of the revenue from photo sales and advertising with the owner of the location.

According to Parker, the kiosks cost $14,000-$25,000 to produce. Parker said Power Interactive finances their own kiosks through a leasing company. Monthly payments are about $400, and can be covered with three photo sales a day. At mall locations the photo kiosks average 15 pictures a day at $5 each, totaling $2,250 each month from photo sales alone.

Power Interactive developed its own software for the kiosks. A Sony digital camera produces 300-by-300 dots-per-inch (dpi) photos of 35mm film quality. The camera pans, tilts and turns to fit the user's face into the pre-set picture.

Customers operate the kiosks using a touchscreen. Five dollars can buy a 4-by-6 picture or four smaller, wallet-size photos on the same size sheet. A 6-by-9 picture costs $10. It takes about 28 seconds to print a 4-by-6 photo and 45 seconds for a 6-by-9 photo.

Business goals

With the help of a photo kiosk, customers can explore new activities.

Power Interactive's goal is to install 30,000 units in North America during the next five years. Thus far, it has placed 65 photo units in malls, hospitals and entertainment venues in the Midwest, Northeast and throughout Ontario. The company has 75 additional units in production.

Future plans include developing a fleet of mobile kiosks that would be available at large sporting events and concerts.

The company's most recent announcement was a business deal with KRI Entertainment Ltd. of Toronto, Ontario and Playtime Entertainment Inc. of Denver, Colo., to install its kiosks in U.S. and Canadian shopping malls. The first phase of a three-phase rollout calls for up to 200 units in malls across North America.

"By moving to the U.S., we are putting our technology into the largest market in the world," Parker said.