Pixology strikes major photo-kiosk deal with Costco wholesale clubs

LONDON--British digital-imagery firm Pixology Plc has struck a deal with Seattle-based Costco Wholesale Corp. to provide software for photo kiosks.

Pixology told Reuters it would supply Costco customized software for perhaps hundreds of kiosks, where shoppers can insert their digital camera's memory cards into a computer, preview images and order prints. Costco operates 430 retail outlets worldwide. Exact terms of the deal are confidential, but a Pixology spokesman said the British company would charge Costco a licensing fee between $500 and $1,500 per kiosk.

Costco is the first nationwide U.S. chain to employ Pixology's customized, branded technology.

Costco has annual revenue of over $45 billion and runs a chain of warehouse clubs where members pay a fee to receive discounts on branded goods, including furniture, hardware and electronics.

"I am happy to see that Costco agrees with our view that it is software which drives digital printing, and it is software that creates the competitive advantage for the retailer," Pixology Chief Executive Yuval Yashiv said in a statement.