Article

Sale ends one era, begins another for KIOSK magazine and site

KIOSK magazine has undergone many changes during its five-year existence. And one of the biggest came in July, when parent company Voyagi Inc. sold it and other kiosk-related assets to NetWorld Alliance, publisher of this site and manager of Kiosks.org Association.

August 22, 2004

KIOSK magazine has undergone many changes during its five-year existence. And one of the biggest came in July, when parent company Voyagi Inc. sold it and other kiosk-related assets to NetWorld Alliance, publisher of this site and manager of Kiosks.org Association.

The purchase of the Voyagi properties doubles the size of Networld Alliance's global kiosk operations. Greg Swistak, a NetWorld Alliance senior vice-president and executive director of Kiosks.org Association, said the move will prove highly beneficial to members.

"Our goal as an association is to bring maximum value to the people on our team--our members. Now, with a market-leading stable of media and other resources to support all association efforts, the future couldn't be more promising," Swistak said.

Lief C. Larson, group publisher for KIOSK magazine for the past five years, said that the only changes resulting from this agreement are those for the positive.

"When it comes to search results for kiosk information, KIOSK.com is No. 1 on Yahoo! and No. 2 on Google. Combining the resources of KIOSKmarketplace.com, Kiosks.org, and KIOSK.com will make it easier for people to access a wealth of information about kiosk technology," said Larson.

A tale of two (kiosk) publications

When people ask Larson why he started kiosk magazine he says that he always had the belief that self-service technology was "going to be the facing technology of choice for about every vertical channel in the future."

Larson had been involved in the kiosk industry as a programmer and a consultant for several years. And it was the promise of the emerging technology -- the value of improving efficiencies while meeting the demands of the consumer - that sparked his interest in developing and growing an information resource for the kiosk market.

At the time, "There was only Craig Keefner with a very simple text user group that he had created." Larson said. The two met, and Larson explained his concept for publishing news and information directly into the marketplace. Keefner encouraged him, and he took the discussion to friend James Vande Castle, who was in the publishing business. Together - Larson with kiosk savvy, and Vande Castle knowing his way around a magazine layout - the two were in business.

"We looked at it as a hobby project, to see if we could get it off the ground," said Larson. "We started small and focused on healthy growth and have continued on that path for the past five years."

The first few years

KIOSK magazine was launched in August 1999 and starting the magazine was very exciting, according to Larson.

"There was a lot of buzz around kiosk technology and we worked hard to increase that awareness to a greater extent," Larson said. "Any industry that wants to add credibility needs to have a print publication out there representing it."

During the first couple of years, Larson, Vande Castle and the people who helped them faced a steep learning curve. The number and type of kiosks deployed grew quickly, and trying to keep up with the technology was daunting. They found themselves learning not only about touchscreens and keypads, but about business principles generally.

"When we first started, units were over $10,000 each, with quite a few units being over $15,000," Larson said. "Over time, one of the things we have learned is with the economy of scale the costs of the system has come down, which has helped the customer deploy the units in greater quantity, which has always been the objective."

Larson never intended to make his fortune as a publisher in the kiosk industry. "This has always been a labor of love for me; I have done the absolute best that I could with the human resources that I had in house."

The negotiations begin

Last year, Larson reached a fork in the road. "The question that any publisher has to ask themselves is how do you take it to the next level and what would be your strategy and how do you execute upon that?"

While weighing his options, Larson came to the realization that he did not have the necessary resources to take the publication to the next level. So he began proactively to consider who would be able to carry it forward.

"I had talked with numerous publishers, both large and medium sized," he said. "I really kept coming back to NetWorld Alliance -- our only close competitor in this marketplace." 

"We had indications that Lief was interested in selling his kiosk assets," said Dick Good, CEO of NetWorld Alliance. "He felt that with the available resources, he had grown the properties as much as he could. He also had other interests he was looking to pursue."

NetWorld Alliance had previously considered print as part of their long-term strategic plans, but decided not to put the resources into launching a print publication.

"KIOSK magazine was an established publication that fit in with our other offerings," said Good. "And the on-target name of his Web site was as good as you could get."

Initially NetWorld Alliance was only interested in the print and online publications. Larson, however, felt that his other kiosk property, The Kiosk Show, complemented the publications. He wanted them to stay together.

NetWorld Alliance agreed to look at the entire package and how it would fit in with its kiosk properties -- KIOSKmarketplace and Kiosks.Org Association. "The October kiosk show in Boston was already scheduled and Lief wanted assurances that it would not only go on, but it would be a success," said Good.

According to Larson, NetWorld Alliance had both a good human resource base and an understanding of the technology, which for him was paramount.

"I believe that they shared a lot of the hopes and dreams of the marketplace with me and that's why it seemed like a good fit," he said. "I had a very large publisher on the East Coast who had extended an offer to us on the publication, but I had my doubts."

Larson set up a meeting in Kentucky with Good and the rest of the executive team and an agreement was reached. It was obvious to all involved that Larson was more concerned about the future of the publication, and the industry, than just getting out of it.

"I have a huge commitment to the marketplace and to the vendors who have been supportive of us over the years," he said. "I really wanted to see them do well and I wanted the publication to end up in the hands of someone that was going to be able to do something good with it and to be able to effectively support continued growth for it."

Industry reactions 

"It's been mixed, but overall positive," Larson said.

According to Good, the purchase is a positive move for the industry because there had been some confusion about the differences among the kiosk publishing players. "The industry response has been encouraging," Good said. "People by and large think it's positive."

The one question that Larson is most frequently asked is where are you going to go, and are you going to continue on with it? "We really need to satisfy that question by explaining that we are looking at growing the publication; it [the sale] was a necessary step and I am going to have commitment to it indefinitely," he said.

"Part of what Lief was looking for was the marketing and editorial help in taking his baby to the next level," Good said. "He was looking for resources to propel forward what he started."

How has NetWorld Alliance responded to advertiser questions and concerns? "This acquisition calls for a good logical organization of our various properties," said Good. "There is a lot of overlap that needs to be sorted out."

The advantage for the advertiser, according to Good, is that "Now we can sit down and talk to them about their entire marketing program. There is an advantage to having an entire package of products and the advertisers should see some economies."

What's next for Larson?

Some assume that since Larson sold the kiosk assets, that he will step away from it. "My intention for selling it had nothing to do with trying to move away from it," he said. "Rather it was just being able to put it in the hands of someone who would take it to the next level."

So what will Larson's KIOSK magazine role be? "To some degree he will act on a consulting basis and as an advisor," said Good. "Lief's long-term relationship will play out indefinitely depending on his interest. He is an ambitious fellow and has other interests he wants to pursue."

Larson's other involvements include product development in a related area of the business. "I have two other companies I am involved with and I have been continuing on with them and will do that indefinitely," he said.

Does Larson have any regrets? "I am typically a person who that no matter if a road is good or bad, I don't like to look back on it," he said. "You can learn your lessons and just keep moving forward, but no, I don't have any regrets."