Seattle based Mod Systems will provide kiosk music vending machines for some Starbucks locations. Mod, a digital delivery system manufacturer and software company, will provide an interactive CD-burning kiosk that allows retailers to offer consumers customizable digital content. Starbucks will be the first of these, although it is unclear how many locations will offer the new service.

"We build software to enable retailers to deliver digital assets like music and movies to retail locations," said Mark Phillips, chief executive of Mod Systems. "Our first product is an on-demand CD-burning solution, which is funny because we use all of this digital infrastructure and output it in our first offering into a physical format."

The kiosks will allow customers to browse, preview and order spot created compact discs of music from over 1.6 million tracks.

This is a great idea that I think is about 4 years past its prime. Mod has plans that would develop the kiosks beyond the CD format for delivery, and it is those plans that point to a far more interesting future. For now though, the idea of the record store condensed into the mini-kiosk is just another sign that the brick ad mortar record only retailers are in for more serious competition form all sides in the months and years to come.

[via ABC News]