An industry executive speaks

In a series of Q&As, frontline practitioners in all facets of the packaged media and digital delivery industry share their views of things past, present and yet to come. It's the turn of STEVE BROWN, CEO of Cinram.

Where do you see your company's comparative advantage in this highly competitive market?

Competition amongst the majors has always been fierce. If I had to highlight one distinct advantage I would have to say our strong balance sheet.

Amongst the range of services you offers, which one did grow in importance over the past 2 years, which one diminished, and which new service(s) will you be offering in the coming 2 years?

In terms of growth in importance, our full service model providing distribution, freight management, demand planning and cash collections has and will continue to be industry leading. Obviously, with the worldwide adoption of Blu-ray our DVD volume has seen substantial decline. As for new offerings, our digital end-to-end solution will be a major step; watch this space, we will be dominant.

One hear alarmist talks about the rapid demise of packaged media in the face of online delivery. What is your view as to how long discs will be around?

Physical is not going away anytime soon, and dependent on factors such as the visual richness of the movie title, it may never diminish entirely. Bit for bit, BD still is the greatest experience and the most cost-efficient way to deliver 50GB of content.

Given the slower than expected take-up of 3D, do you thing 3D is here to stay or consumer interest in stereoscopy is temporary?

I think it's title dependent at least until glass-free 3D arrives and even post that to a large degree.

Do you think the consumer take-up of 3D depends on the arrival of glasses-free autostereoscopic systems. If yes, how many years do you believe consumers will have to wait for a high-quality glasses-free system to rival the existing shutter glasses 3D systems?

Arrival and affordable are two different things. I'd ask the CE guys that one.

Cloud-based UltraViolet digital delivery has yet to make inroads in Europe. What needs to happen for consumers to embrace this digital service? Could UltraViolet be superseded by large retailers' own digital locker system like Tesco's Blinkbox?

Cinram has been putting content into the hands of consumers for over 40 years and Ultraviolet adds yet another secure method to do this. UltraViolet is a heavily supported, comprehensive solution to provide secure content. Adoption at this stage will depend on the consumer-interfacing platforms which drive the UV standard. This is something we plan to be a big part of. Watch out for an upcoming release.

Do you think UltraViolet has the potential to increase sales of BD discs (as the studios intended) or be the death knell of the packaged media?

I believe that BD and UV are umbilically linked, on the contrary I believe BD will drive users to UV. So long as the route is clearly defined and the experience is good.

What do you see as the opportunities and pitfalls associated with Digital Copy on a disc?

If managed and communicated well, no pitfalls.

How much of a revolution Smart TV represents, given that consumers are already comfortable using other screens (laptops, tablets, smartphones) to access Internet-delivered content?

Give the consumers choice. We provide the delivery of great content that our customers produce. The method of watching that content is up to the consumer. The more places they can watch it, the better.

Ultra high definition 4K TVs are coming to the market. Is it a response to consumers demanding a better quality picture or a push by CE manufacturers who need to introduce higher-margin products?

The consumer will decide.

Do you think 4K could be the shot of adrenalin Blu-ray needs given that a BD disc is best suited to bring ultra HD content to the home?

The launch and education of BD was far from flawless, but now that people get it, it's great. I don't think we need 4K to give it a boost, it is already adopted and growing well. It can't hurt so if 4K takes off, great.

The revival of vinyl points to a renewed interest for high-quality audio. Pure Audio Blu-ray (BD disc with uncompressed audio) is being launched. Do you think there is a sustainable market for it?

I love the Pure Audio product, but the question is "does the mass consumer understand it, where can they play it, and will it be enough to drive CE sales to do so?" After all, we are in an era where people listen to music through their phones speakers! They don't even see the need for great sound quality at the CD level. I wish it well but, well, we'll see.


How to you see Hollywood squaring the circle between the inexorable fall of high-revenue producing packaged media and the unstoppable rise of low-revenue generating online digital delivery?

It's a tough one. First we have to narrow the choices, make the route to digital clear and the experience better. Change in landscape is always a stimulating time.

If you let your imagination run wild, what system, format, application aimed at delivering content to the home would you like to see implemented in 10 years time?

We at Cinram have a strategic view on that, ask me again soon. For now, I'd say give the consumer a compelling and easy route to a great experience and they'll take it. Confuse them with to many choices and a poor experience, and they will just wait and or seek the content through alternate means.

Contact: www.cinram.com....

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