Europe's online source of news, data & analysis for professionals involved in packaged media and new delivery technologies
An industry executive speaks
In a series of Q&As, professionals in all facets of the packaged media industry share their views of things past, present and yet to come. It’s the turn of ZOLTAN TUSSAI, MD of Optical Disc Solutions, based in Bucharest, Romania.
Where do you see your company's comparative advantage or uniqueness in this crowded marketplace?
Our competitive advantage consists in the fact that we offer to our clients complete solutions, from licensing to the most diversified packaging. More than this, we are the only CDSA-certified company in the region.
Amongst the range of services you offers, which one grew over the past two years and which one diminished?
Content management and marketing-related special promotions are still on an increasing trend, constantly. Straigthforward replication has diminished as the retail market deceased.
The non-home entertainment, corporate market is very substantial as far as DVD is concerned, rarely mentioned in statistics. Do you service this market segment as well?
Yes, we are trying to increase our involvement in the corporate market segment.
One hears alarmist opinions 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? And how to you plan this transition?
I agree that online delivery will take a significant share from the packaged media, but the latter will not disappear. Actually, the two formats will co-exist and complement each other.
The unexpectedly rapid fall in price of Blu-ray discs, early in the commercialisation of the format, makes the economics of BD replication and authoring very challenging, especially in view of the heavy investment required. What needs to happen to make it a viable, long-term business for independents?
The local market is at a very early stage in the development of Blu-ray. However, Eastern Europe is characterised for its "big steps" in development. Often industries reach maturity, even "burn-out" phase at an intermediary stages. There is an obvious need for more and proper content for BD which could increase the volume of this market segment and could nurture further developments.
Do you think Blu-ray discs will eventually replace DVDs completely or will they only partially replace them, becoming a niche, albeit big?
I think that Blu-ray discs will replace slowly and only partially DVDs, at least on our local market.
Do you see the arrival of 3D as the shot of adrenaline the Blu-ray disc format badly needs to progress in the market, or do you think consumers will make a success of Blu-ray irrespective of whether 3D develops?
Probably, the demand for Blu-ray Disc will increase rapidly as 3D is going to be spreading into the market.
Do you think 3D is here to stay or consumer interest in stereoscopy will be temporary?
I believe this format is still developing and for the moment it is not researched enough and fully finalised. Probably, the current 3D system will be replaced with an improved product.
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 match the existing shutter glasses 3D solutions?
Yes, I agree that 3D depends substantially on glasses-free systems; maybe in three years?
Films on solid state/Flash memory, Holographic disc, 4,000-line Super HDTV are advanced technologies at varying state of development. Do you see any of them entering the consumer market and, if so, in what time frame?
There are certain technologies that could have a strong impact on the optical disc market. We estimate that these various technologies listed could gain 10% to 25% share of the consumer electroncs market over three to five years.
An increasing number of manufacturers are moving into solar panel/cell segment, which they reckon has more potential than packaged media. Is there enough synergy between the two industry sectors to warrant such a move? Are you considering expanding your activities in the solar business as well?
Yes, there is a possibility we could consider expanding our activities into solar business, but it depends mostly on the local political and regulatory environment, which has to improve the legislation regarding green energy.
Diversification is claimed to be the best way of staying afloat in the face of market uncertainty. How do you see your company's range of services evolving over the next 2 to 5 years?
We have developed our fulfillment and packaging activities for other products, not related with our industry. We are in the process of analysing other developments as well.
Contact: www.ods-bs.ro
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On predicting the future
Predicting the future, let alone the future of packaged media, is a perilous exercise, and possibly counter-productive, as the exercise closes doors rather than keep them open, argues JEAN-LUC RENAUD, DVD Intelligence publisher. Consider that: Apple was left nearly for dead 15 years ago. Today, it became the world's most valuable technology company, topping Microsoft.
Le cinéma est une invention sans avenir (the cinema is an invention without any future) famously claimed the Lumière Brothers some 120 years ago. Well. The cinématographe grew into a big business, even bigger in times of economic crisis when people have little money to spend on any other business.
The advent of radio, then television, was to kill the cinema. With a plethora of digital TV channels, a huge DVD market, a wealth of online delivery options, a massive counterfeit underworld and illegal downloading on a large scale, cinema box office last year broke records!
The telephone was said to have no future when it came about. Today, 5 billion handsets are in use worldwide. People prioritize mobile phones over drinking water in many Third World countries.
No-one predicted the arrival of the iPod only one year before it broke loose in an unsuspecting market. Even fewer predicted it was going to revolutionise the economics of music distribution. Likewise, no-one saw the iPhone coming and even fewer forecast the birth of the developers' industry it ignited. And it changed the concept of mobile phone.
Make no mistake, the iPad will have a profound impact on the publishing world. It will bring new players, and smaller, perhaps more creative content creators.
And who predicted the revival of vinyl?
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