MOD Systems

About MOD Systems

MOD Systems, founded in 2005 by Mark Phillips, was a Seattle-based technology startup that developed and operated a digital media distribution platform centered around smart touchscreen kiosks. The company aimed to provide on-demand music and video downloading for consumers in various retail locations, including a notable contract to run music kiosks in Starbucks stores starting in 2006. The business model focused on providing these kiosks to retailers, allowing customers to purchase and download digital content directly to portable devices.

The company's technology served as an early iteration of digital media on demand, creating an in-person distribution network for movies and television shows at places like airports and other retail environments. MOD Systems managed to secure significant investment, including a $30 million buy-in from Toshiba and another firm in 2008. In total, the company raised approximately $6.05 million in funding over two rounds.

Co-founder Mark Phillips, who served as CEO until March 2009, was a rising figure in the Seattle tech scene, having started tech companies while still a university student. However, his tenure ended amid accusations of mismanagement. In March 2011, Phillips was convicted of multiple counts of wire fraud, mail fraud, and money laundering for diverting over $1.5 million in corporate funds for personal use, including a penthouse down payment and luxury watches. This legal turmoil ultimately impacted the company's trajectory, and MOD Systems is now considered a deadpooled company.