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Hot ticket
ATM Tix Inc. rolls out its technology -- which turns the ATM into a virtual box office window -- at 17 machines in Las Vegas. Consumers can buy tickets online or over the phone, then pick them up at the ATM.by Ann All, editor
May 3, 2000
When it comes to tickets, consumers want the real deal. Jerry Frazee, president and CEO of ATM Tix, Inc., believes that's the key to his company's technology, which allows customers to pick up theater or other event tickets at the ATM. "Wells Fargo has touted that you can buy tickets at their ATMs, but you actually buy a voucher that you turn in at a special window to get your ticket," he explained. Even with bar coding and other security measures, a ticket printed on secure stock is still the best prevention against fraud and duplication, Frazee said. And in cities like Las Vegas, where ATM Tix now offers its service in a deal with Tickets.com, many tourists keep their ticket stubs as a souvenir. A voucher just doesn't look good in a scrapbook. A ticket in the hand also eliminates the tiny twinge of doubt that many experience when picking up tickets at a "will call" window. Consumers can order and collect tickets for events held at the Thomas & Mack Center, Sam Boyd Stadium, Cox Pavilion and other Las Vegas venues that distribute tickets through Tickets.com. After logging on to Tickets.com or calling an 800 number, they select the event, price category, seating location, quantity and payment method. Within a minute or so, Frazee said, the tickets can be collected at a participating ATM. After the consumer swipes his credit card -- or any card used to purchase tickets -- the tickets are printed and distributed on the spot and confirmation is sent to the ticket seller. The card "could be an employee card or any card the selling entity has identified," Frazee said, adding that several companies have expressed interest in establishing programs in which they can offer tickets as employee perks. The ticket seller, either a venue or a reseller like Tickets.com, controls what appears on the ticket, he said. "They may bar code, they may not. If they're concerned with scalping, they may want the ticket holder's name to be there." Consumers likely won't pay more than the standard processing fee already charged by most resellers. While resellers will save money because ATM Tix's system reduces their delivery costs, they won't necessarily pass the savings along to the consumer. Currently the service is available at 17 Bank of America ATMs in Las Vegas -- all at off-premise locations. The most important criteria for machines is convenience; that means sites like supermarkets, convenience stores and other retail chains. In popular tourist destinations like Las Vegas, Frazee also has targeted hotels, casinos and other entertainment venues. In Vegas, he aspires to be in every major casino. Partnering with Bank of America -- the nation's biggest deployer of ATMs in casinos -- may improve his chances of achieving that goal. The right "location partners" may help market the service, Frazee said. For instance, a hotel might distribute fliers to guests or a casino might put table tents in front of its patrons. While the ATM owner doesn't necessarily have to be a bank, Frazee said, it must be "a stable organization that has a long-term relationship with the retailer and a major, identifiable presence in the market." More banks than independents currently fit that profile, but Frazee said he is "looking at all of the opportunities that would make sense." ATM owners are reimbursed for the use of their equipment. The market is potentially huge. According to Frazee, more than 750 million event/entertainment tickets and 1.5 billion movie tickets are sold each year in the U.S. alone. And Frazee is interested in offering his service in other countries as well. He envisions a scenario in which consumers can order theater tickets online while planning a trip to London, then collect them at a local ATM before boarding the plane -- or pick them up at an ATM in England. The initial 17 BofA machines are Diebold 1064s with a sidecar attachment that holds a second printer. An additional printer is the only hardware upgrade necessary, Frazee said. On smaller cash dispensers like the 1064, that means a sidecar; on larger machines, the printer can take the place of an extra cassette. Installation of software is also required. "These modifications can be done to virtually any machine in the field today," he said. Advertising is a natural fit with his company's technology, Frazee said, because ad campaigns can be targeted to a ticket buyer's interests. So, a consumer picking up tickets for the rodeo finals might get a pitch for a Western clothing store. Or a buyer of "Disney on Ice" tickets -- likely a parent -- would receive McDonald's coupons. Sports venues could help drive traffic to their concession stands with "two for one nachos" offers. Banks may have a special interest in promoting their services to non customers picking up tickets at their machines. "Banks have told us this will drive non-customers to their ATMs," Frazee said. "I'm sure if you go to a BofA ATM and you're a Wells Fargo customer, you'll get hammered with all the benefits of being a BofA customer." The key with such advertisements is brevity, Frazee said. "How much will a consumer accept. Even though it may not take any longer, will they perceive that they're waiting longer because they're watching a commercial." Although ATM Tix's technology will support consumers selecting and purchasing tickets at the ATM, Frazee said that could stretch transaction times to unacceptable lengths. One possible solution: installing a touch screen PC next to the ATM so that users could browse and buy at the PC, then collect at the ATM. Frazee believes it's important to maintain a familiar ATM-like interface. "The average consumer is not intimidated by the ATM any longer, but some are intimidated by ticketing kiosks," he said. "They're not sure how to use them and don't want to approach them. Even the smartest guy in the world is afraid of looking stupid in the middle of the supermarket."
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