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 MIKE REDFERN, Sales Director at London Laser Company UK Ltd.

Where do you see your company's comparative advantage or uniqueness in this crowded marketplace?

London Laser Company has over 45 years' experience within the entertainment business. We have worked for major labels such as Island Records, EMI (PMI) and VCI on the client side, and for replicators such as Disctronics, Lynic and VDC Group as well as for printers such as AGI. So, we can boost a great breath of knowledge.

As an independent supplier of products to the entertainment, media and business-to-business sectors we can offer the personal service which I believe is still required in our business today. We work in an industry built on relationships, but there is still the need to supply the right products at the right price.

Amongst the range of services you offers, which one grew over the past two years and which one diminished?

Special packaging is of great importance to the company. We won a Grammy last year in the US for a multi-format boxset containing a CD, 2 DVDs, a book, coloured 7? vinyl and 12? special gate fold, special limited edition prints - all boxed in a bespoke outer case. We are currently working with a number of independent labels on rigid card and tinned products. It is out experience that unique packaging concepts give the customer a greater perceived value of their assets, likely to generate a higher retail price.

We still have a decent demand for standard products targeted to the independent sectors we work with, owing to the service we offer.

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, this is a strong market for London Laser Company. There is great value in the corporate market. The CD and DVD are a great ways of getting the message across in simple or extravagant way depending on the packaging requirements.

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?

Thankfully the UK is a nation of collectors and there will always be the need for special packaging, even in ways to get a downloaded file to the end user. I feel the disc will be around longer than me…

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?

Due to the fast moving commercial industry we are in, people want everything cheaper and faster. You can buy anything now at your fingertips. Competition within the retail market makes it so that everyone has to sell a little bit cheaper to get the floor space. It is very difficult for the independents to enter this market owing to the high production cost and reducing selling price. More support from the retailer is needed for the independent market place.

Are there lessons in the development of the DVD format that could/should be applied to Blu-ray (pricing, positioning, marketing strategy, etc)?

What took the CD 10 years to develop and market, the DVD did in 5 years. I hope the Blu-ray doesn’t become the coffee coaster of 2015. The pressure on companies to sell discs cheaper and cheaper has come from the cover mount boom over the past years. The disc format does not have the value it used to have.

Do you think Blu-ray discs will eventually replace DVDs completely or will they only partially replace them, becoming a niche, albeit big?

I hope not. Not all films were made in HD. There is still a place for all the disc formats.

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?

I love 3D at the cinema, but would I buy the 3D TV/ player? I'm not sure. I will make that decision when my wife lets me purchase a new system. Sometime soon I hope. I would prefer a glasses-free 3D system, but as I understand there is still some way to go.

Do you think 3D is here to stay or consumer interest in stereoscopy will be temporary?

Yes, 3D is here to stay. As technology progresses it will become the norm.

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 do think the take-up of a glasses-free 3D system is important and it does need to come soon. If it works, then I will be at the front of the queue.

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?

The services we offer are unique in regards to packaging and we will work with our suppliers to develop and supply to demand. Blu-ray is one format which we believe will take the company forward. We are also looking at diversifying into sectors outside our traditional industries.

We are adding new services and we will keep strengthening our presence in the next five years as the local market is getting smaller and new markets must be approached.

Contact: www.llcuk.co.uk...

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