News
CCS, First Union pull ATMs from Hollywood Video
A high-profile deployment is halted after volumes don't meet expectations. The ATMs will be relocated to new off-site locations.by Ann All, editor
September 30, 1999
Apparently not enough Hollywood Video store customers wanted cash to go with their movie rentals. First Union Bank of Charlotte, N.C. and Card Capture Services of Portland, Ore. have scrapped their plan to deploy 500 ATMs at Hollywood Video outlets across the U.S. after determining that transaction volumes weren't meeting expectations. As of last November, 250 ATMs had been installed, primarily at Hollywood Video stores along the West Coast. According to a CCS spokesperson, the machines did not meet pre-determined projections for the program. Further installations were delayed to determine if the lower-than-expected volumes were due to the "ramp up" time, a common occurrence in new deployments. However, after a review of the program, the three companies jointly decided to halt new installations, pull the existing machines and relocate them to new off-site locations. The Hollywood Video sites were selected based on a detailed analysis that included customer demographics within a three-mile radius of stores, foot traffic and the proximity of other ATMs to each store. A 3-month test was conducted at stores in Oregon and Washington. Despite all that, the machines "just didn't meet our goals," said First Union spokesperson Tony Hoppa. The program shows what a "challenge" finding profitable off-site locations can be, he added. "There are so many factors in terms of traffic, consumer preferences and usage patterns." When the deal was announced last year, it was the biggest partnership ever between a bank and an ISO. First Union purchased the hardware, Diebold CashSource Plus and 400 ATMs, and supplied the cash. CCS handled management and processing. The two sides shared transaction revenues. Another unusual twist: The Diebold machines were equipped to display on-screen color advertisements, using a piece of proprietary software called CCSConnect to download the ads from a central network operations center. In an earlier ATMmagazine.com report, Saul Caprio, CCS's director of marketing, said deals between banks and ISOs are beneficial for both sides because "they play off the strengths of each other." According to the CCS spokesperson, redeployment of the machines has begun and should be complete by November. No new sites have been announced.
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