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Conference Chairman
![]() Devendra Mishra Conference Chairman Advisory Board
![]() Rick Eiberg, Executive Vice President, Operations & Chief Technology Officer, Image Entertainment, Inc.
![]() Tom Emrey, Executive Vice President and Chief Operating Officer, Universal Studios Home Entertainment
![]() Tony Korkunis, Senior Vice President, Retail Operations and Category Management, 20th Century Fox Home Entertainment
![]() Amy Jo Smith, Executive Director, DEG: The Digital Entertainment Group Speaker Bios |
Looking Who's Coming to ESCA 2007 The pre-registration list for the Second Annual Entertainment Supply Chain Academy features a who's who of operations executives from the leading studios, their partners and their vendors. There's still time to register, though space is severely limited at this time. Join the following industry leaders in perfecting the physical supply chain and developing the digital supply chain.
Jun 24, 2007, 22:48 HK Systems Announces New Transportaton Management Release HK Systems, North America’s largest material handling and supply chain software total solutions provider, today announces the release and deployment of its newly developed Transportation Management Software, HKTMS version 8.7. The first customers to deploy the new version are in the entertainment business; one is an industry leading video game software developer and marketer while a second company is a major book publisher. Building on and enhancing existing capabilities, the new system further refines the ability of high volume, high velocity “release date driven” companies to better manage all aspects of their transportation operation while optimizing the transportation spend. Specific capabilities are in place to help companies: • perform per shipment optimization in high volume environments (> 5000 orders per day) • improve customer service and reduce customer charge backs • enhance carrier compliance, carrier relations, and negotiations • increase internal operational compliance • achieve financial compliance and visibility Robust security enhancements, an improved carrier compliance architecture, and enhanced ERP, OMS, WMS, and EDI integration capabilities round out the new product release. Bob Carver, HK Systems’ Vice President, Logistics Software, stated, “HK Systems has provided Transportation Management System solutions for more than 15 years to many of North America’s highest volume shipping locations, who leverage our product’s unique per shipment optimization capabilities.” Carver continued, “The HK installed customer base collectively processes over 34 million orders per year which represents more than 50 million parcels/pallets shipped. Our highest volume customer distribution centers routinely achieve peak throughputs in excess of 40,000 orders per day which translates into 45,000 parcels/pallets shipped per day.” HKTMS is part of the HK Systems Logistics Software Suite, comprised of companion applications covering the supply chain enterprise, including: • HKWMS – State-of-the-art Warehouse Management System • HKMTC – Material and Tracking Control for the Paper & Publishing Industry • HKAPC – RFID-based Asset and Process Control • HKEMS – HK Systems industry leading Warehouse Control System for material handling automation control • HKFoundation – an operating system and database independent application which forms the backbone of HK Systems’ Logistics Software Suite About HK Systems, Inc. HK Systems is North America’s most experienced automated material handling and supply chain software total solutions provider. The company’s comprehensive product and service offerings include automated storage and retrieval systems, automated guided vehicles, conveyance, sortation, customer services, RFID solutions, and warehouse and transportation software systems. Addressing the synchronized flow of material and information throughout a company’s network, HK Systems develops, deploys, and maintains innovative solutions that improve customer service, reduce inventory and delivery time, and lower overall costs of manufacturing, distribution, and transportation. For more information regarding HK Systems, its products and/or services, call 1-800-HKSYSTEMS or visit www.hksystems.com. Jun 24, 2007, 19:18 Macrovision Announces Solutions for Information Publishers to Expand their Revenue from Online Content Macrovision Corporation (NASDAQ: MVSN) has announced two solutions for information publishers to digitally package, sell, control and distribute their digital goods and services based on the needs of consumers. These two solutions, Content Access Control and Digital Commerce, include Macrovision’s latest product releases of RightAccess and RightCommerce, which can help information publishers expand the ways in which consumers are given access to data. Jun 24, 2007, 19:16 Primera® and TitleMatch To Demo Fully-Integrated, DVD-on-Demand Service with CSS Encryption Primera Technology, Inc., the world’s leading developer and manufacturer of CD, DVD and Blu-ray Disc duplication and printing equipment, and TitleMatch Entertainment Group, an innovator of on-demand content distribution, today announced they will be the first companies to publicly demonstrate a completely functional and fully-integrated DVD-on-Demand solution that includes CSS encryption. The demonstration will take place at the Entertainment Supply Chain Academy’s (ESCA) Digital Supply Chain Developers Conference, July 27-28, 2007, in Los Angeles, California. Jun 24, 2007, 19:12 Perfecting the Physical While Developing the Digital Welcome to the Second Annual Entertainment Supply Chain Academy (ESCA 2007) -- two days of open information exchange, collaboration, networking and ideas. This year's conference program reflects the changing dynamics of the content scene in Hollywood, as well as the growing emphasis that the content holders are now placing on developing a best-of-breed supply chain for their entertainment products. Jun 18, 2007, 18:48 Kimberly-Clark Brings RFID Promotional Expertise to ESCA Jun 18, 2007, 11:47 Building the IT Backbone for Sony United When Sir Howard Stringer took the reins of Sony worldwide in 2005 he outlined a strategy for an integrated company that leveraged the assets and operations of all Sony divisions to maximize the strength and profitability of the entire organization. IT plays an essential role in turning this strategy into an everyday reality and David Cortese, VP and Division CIO for Sony Pictures Home Entertainment, will be discussing the company's progress as part of the Day One (June 27, 2007) CIO panel at the Entertainment Supply Chain Academy (ESCA) at the Century Plaza Hotel in Los Angeles Jun 15, 2007, 14:55 View from the Front Lines of the Digital Supply Chain The home entertainment supply chain actually begins well before the disc is stamped, packaged and shipped to retail. For many studios, the first step begins in an office building in Burbank, California, where Deluxe Digital Studios begins the process of creating the ancillary materials and preparing the master assets for disc replication or download. Rob Seidel is the Executive Vice President and General Manager of Deluxe Digital Studios, the home entertainment software division of Deluxe, where he manages the hectic and constantly changing process of developing, authoring, transcoding, meta-tagging and formatting home entertainment for the masses. His group employs 800 full-time employees and operates facilities in Burbank, Moosic (Pennsylvania), Montreal, London, Florence and Bangalore, providing digital services for product lines including DVD, HD DVD, Blu-ray and an ever-widening number of electronic distribution platforms. Services include bonus material development and interface design, video editing and compression, audio mastering and encoding, a range of content localization services, authoring and software development, optical disc mastering and small volume disc replication for runs of 40,000 discs or less. The company also employs 2,200 language translators around the world. And, check discs created in their Burbank headquarter facility never have to leave the premises as an independent testing company, Testronic Labs, is conveniently located in the same building. Each content delivery format has its own challenges, he explains, though Deluxe is evolving a new digital entertainment workflow that is designed to work on all products in parallel, including all worldwide versions of those products, utilizing an end-to-end supply chain (from creative services to worldwide content localization through all the technical production steps up to the point of mass replication or electronic distribution). "Our business model is to tightly couple the individual processes required throughout the home entertainment software supply chain," he explains. "From a chalkboard view, we start with a single set of source masters and assets and we transform them into high quality consumer products for all worldwide territories. The challenges that lie ahead are consistently voiced by our customers - distribution windows will continue to shorten across all product lines, piracy prevention measures must increase, and home entertainment product complexity will continue to rise. Our integrated supply chain model is how we're addressing these concerns with real solutions." Two of the most significant changes in the home entertainment landscape are the growth of digital distribution and the introduction of web-connected HD DVD and Blu-ray players. To help focus on these opportunities, Deluxe brought in industry veteran, Todd Collart, as Senior Vice President of New Technology (Deluxe Digital Studios). His responsibilities will include the company's new technology initiatives including Blu-ray, HD DVD, electronic distribution and network services), R&D and intellectual property development. To date, his team has shipped over 700 Blu-ray and HD DVD projects and well over 10,000 digital video files for electronic distribution. The proliferation of web portals offering video content is the challenge on the digital download side of the business, Collart explains: "There are so many portals and formats out there, each requiring different versions of metadata, codecs and language configurations. In order to produce these files cost effectively, we automated much of the process with custom tools. For example, we collect a very wide set of metadata, store the entire set in our database and then provide conversion tools that output metadata files tailored to each portal's specification. We also built a suite of capture, conversion and QC tools." In the Blu-ray and HD DVD areas, studio marketing divisions are trying to differentiate their products, while exploring and creating the new format possibilities. "Disc and feature complexity is significantly on the rise and advanced features, like network connectivity and downloadable content to players, are changing the model and workflow completely", Collart explains. "The back-end infrastructure to support online connectivity in these players is very complicated. Disc content and the consumer experience will be dynamic and can change after distribution. The upside value-add potential for studios and consumers is huge, but the supply chain impact for digital production companies like Deluxe is just as huge. This has to be well thought-out and addressed with an enterprise level solution, one that allows the studios to manage the process, one that strongly considers the consumer experience, and one that will be around for 10+ years." Rob Seidel and Todd Collart will be discussing the realities of this process and the efforts that Deluxe is underwriting to integrate this workflow for a growing array of product lines (including portals) as part of a day-two seminar at Entertainment Supply Chain Academy on June 28 at the Century Plaza Hotel in Los Angeles. Jun 6, 2007, 19:03 Adult Video Pioneers the New Digital Supply Chain Adult video has driven innovation in home entertainment. From the days of VHS and Beta it was the lust for private, personalized porn that has traditionally driven consumer demand for the latest consumer technologies. Not surprisingly, several leading adult video companies are at the cutting edge of innovation in the development of an infrastructure and business model for marrying their core DVD and new next-gen DVD businesses with digital downloads. What can Hollywood learn from their counterparts on the other side of the Hills? Ali Joone, founder and director at Digital Playground has been developing his company’s digital supply chain business for seven years when he launched his first membership site, followed by his first VOD service in 2004. With over 300 full-length features in his library, all digitized for streaming or download, he has been delivering content for mobile devices in 38 countries. “Our business right now is 60 percent finished goods, 20 percent Internet, 10 percent broadcast and 10 percent mobile; finished goods are still growing because our distribution is expanding worldwide and because people are getting comfortable with purchasing on line,” he explains. “However, the potential for streaming and digital download is even greater as a global business since we’re now able to deliver our content to countries like India and China where they couldn’t otherwise get our DVDs.” In the DVD category, Joone is increasing the number of HD DVD and Blu-ray releases. For a $29.95 monthly membership fee, meanwhile, he provides customers with unlimited streaming access to his library, which is serving to promote both his DVD and download- to-own lines. He has carefully priced his downloads and DVDs at the same price-points to avoid cannibalizing his core business and the business of his dealers. ”Our goal ultimately is to have a one-on-one relationship with our customer. With digital downloads we can help build that relationship; we can learn what they like and what features they are after. We can learn how to sell them better, which ultimately helps us develop better content to begin with. It is vital, however, that the customer have a rich experience with our web site; we need to deliver everything they need to make the right buying decision.” Currently, he says, 50 percent of his online customers are opting for membership, while the remaining 50 percent are choosing download-t- own. Digital Playground has release windows just like the majors; however their DVD is akin to the studios’ theatrical release, which is delivered prior to download-to-own, and before the production is added to the membership-only streaming site. “There is not one type of customer just like there is not one type of distribution. Our job is to make the content and distribute it everyway possible. With the adult business, it is not like a theatrical business where you need to sell your movie in one or two weeks; you can have as long as a year or two to sell a title,” he says. Digital Playground is one of the few adult film companies to control its own preproduction and authoring in house, All movies are now being shot in high definition and are stored on their own servers; the emphasis on HD, he feels, will support the continued sales of DVDs, though he says that it likely that his standard definition DVD business will mostly go to the Internet while, due to file size, HD content will remain a physical goods business for quite some time. In fact, he relates, his high definition disc business is outpacing sales he experienced during the first years of his standard definition DVD business. Joone feels that online video memberships are a tremendous opportunity for the Hollywood studios. “If someone was offered a membership that gained them access to streaming-versions of the Disney catalog for $29.95 per month, what parent wouldn’t subscribe? If you have a million people giving you $29.95 per month, it becomes better than cable and with streaming you don’t have piracy issues to contend with.” Like any director, Joone feels that success begins with the quality of the content, while the studio executive side of him reminds his counterparts that it is vital to “market and distribute that content as many ways as possible. These are times when you need to experiment. Don’t get too comfortable. You have to explore every option. Sticking with one solution could be a dead-end road. Keep your options open and don’t wait. Now’s the time to make your move,” he says. Jun 6, 2007, 16:04 Mosaic Walks the Retail Floor for Consumer Brands As one of the leading consumer merchandising firms in the United States, the Irving, Texas-based Mosaic executes retail promotions in over 75 different retail chains every day. With over 10,000 representatives walking the floors of mass merchandisers, grocery and specialty stores, and office suppliers, the company has first-hand experience in explaining the daily reality of retail to vendors, including purveyors of DVDs and other forms of entertainment media. "We manage the last three feet of the sale for our customers, where the brand and the consumer comes together. It's up to us to find out if the product is out there, if the pricing is right and if the display is being used," explains Mosaic CEO Jim Rose. "As more complexity comes into the DVD category, as it gets more complicated from the consumer point of view to choose between formats, we become the representatives of the studios who help the consumers navigate through the decision-making process." Mosaic increased its commitment to the home video category last year when it hired Walt Disney supply chain veteran Vic Hernandez as Senior Vice President of its Client Services Division. Hernandez will be appearing as part of the panel on in-store merchandising at the Entertainment Supply Chain Academy, June 27-28 in Los Angeles. Prior to his year time at Disney, Hernandez was vice president of distribution/supply chain at T.J. Maxx. While Rose credits the face time its representatives have with retail employees as the core source of its service value to its customers, changes in the merchandising field are turning the business into more of a "science" than an "art," with the introduction of a range of key performance metrics -- measured in hours per door based on sell through -- assuring that vendor programs are fully "calibrated, orchestrated and optimized consistently across the country." What's more, in-store merchandising technology is changing the visibility of the service with scan-based trading having made the biggest impact on the business over recent years, and digital photographs and handheld scanners now providing increased reporting value from the field to headquarters. Rose adds that "RFID is an important initiative that will go a long way in assuring vendors that the job is getting done." This is especially important when it comes to DVD sales where he explains, "the studios are recognizing that in-store execution is a top priority." However, the job still comes down to people, Rose explains. "Did the people go where they are supposed to do and do what they are supposed to do?" As an executive who has spent most of his career in marketing information and advertising, Rose especially values the role that retail execution plays in delivering maximum advertising ROI for home entertainment companies. Rose came to Mosaic from his position as CEO of New York-based Media Planning Group North America, a unit of the Havas global advertising agency, one of the largest full-service media planning and buying companies in the United States and Canada. "From an ad marketing point of view, companies are putting increasing amounts of their budgets into retail point-of-sale because you have a greater, measurable return on your investment. You can connect with consumers where they shop. Depending on the product category, you are seeing a shift of those marketing dollars- to instore activities, with bigger displays and more in-store promotions where the clarity of the offer is paramount. "The consumer is demanding more; they are becoming numb to promotions. And they are expecting a more personalized, in-store experience. We are moving from a product-centric retail environment to a more consumer-centric retail approach, where even big box retailers are beginning to fragment their stores and are providing a different assortment of products to reflect localized trends and demands. This is putting increased pressure on the stores and on their supply chains. And it is changing the role that merchandisers play in supporting the retailer in their brand initiatives and making sure those initiatives are properly executed." Jun 6, 2007, 15:58 Behind the Scenes, Changing the Content Delivery Landscape Telecommunications will be changing the landscape of home entertainment, as more carriers look toward content as a value-added service to pipe directly into households around the world, according to Greg Jacobsen, Vice President, Telecom, Media & Entertainment Practice Lead, Capgemini Americas. "Most of the telcos are trying to reshape themselves as distributors of content and unless retailers can embrace digital media themselves, the telcos could very well displace their role as the primary purveyor of home entertainment," Jacobsen explains. Jacobsen views the home entertainment business with a unique perspective, having spent the last 25 years serving the communications, IT and software industries. Before joining Capgemini, he was executive vice president of Wireless Facilities, CEO of Encoda Systems, and CEO of XOR, Inc. - an Internet integration firm. "The traditional telephone companies are facing declining revenues; that business is eventually going away," Jacobsen explains. "They have invested billions in broadband, and they have realized that, to offset the declining revenues from traditional voice calls, they have to make some money on content and to do that they have to compete with cable. It won't be long before they have a significant impact on the way that content is being delivered to the home; we are four or five years off at most." Where does that leave the traditional home video/retail distribution network that currently drives the most profits for Hollywood and that, not insignificantly, is still a core source of consultancy assignments for Jacobsen's division? "I've been in this business for along time," he says. "No one thing kills off everything else. We still have AM even though we also have FM radio, for example. Everything finds its rightful place. However, today's consumers are so content hungry and they really expect to get content from anything --their mobile phone, TV set, satellite TV device. Overall, I think the more choices the consumer has the more activity there will be for the content holders. "The technology is going to make the boundaries around these traditional product groups meaningless. I think the home entertainment groups are going to ultimately re-engineer themselves so they can exploit a variety of distribution channels. They understand that the niche they have had is being attacked. As a result, some of the studios are really embracing going direct to market. So are some of the retailers." Showing the studios and traditional retailers how to go "direct to market" is occupying a lot of Capgemini's time in Hollywood these days, having worked closely with Hewlett-Packard in the development and launch of their content delivery and digital supply chain enterprise. They supported the computer giant in building its innovative content vault system, actually a massive server farm with digital ingest capabilities, which allows them to digitize content and make it available in a variety of traditional and emerging forms of distribution, from the stamping of a DVD on a huge array of Rimage disc burners to digital downloads. HP and Capgemini worked behind the scenes in the recent launch of Wal-Mart's digital download business. Capgemini's most significant contribution to this groundbreaking initiative was introducing the concept to the studios and engaging their support in providing content. "The studios were watching what happened with music; iTunes was a wakeup call for a lot of people, showing them that the consumer would embrace a different way of accessing their content. When they see a major player like HP make such a big bet on this and put in such a huge investment into enabling this opportunity, it was obvious that it was time to dive in." With such a wide variety of corporate "touch points" in the TM&E community, from the telcos, to the studios, to the cable companies and retailers, Capgemini is in a unique position to play dealmaker between the various, often competing, constituents in this changing digital entertainment scene. "Our relationships are what brings the value to the studios. The fact that they are now, finally, seriously evaluating the new distribution channels for their content is a significant market change that will ultimately make this dynamic period in digital delivery happen -- and I'd like to think that my team has had a lot to do with it." Jun 6, 2007, 15:56 WebConcepts Takes Entertainment Leadership to New Categories Software company, WebConcepts, Inc. has been serving retailers and their movie studio suppliers since the late 1990s with their state-of-the-art vendor-managed inventory (VMI) solution. The Entertainment Supply Chain Academy welcomes WebConcepts back as a Platinum sponsor. WebConcepts, Inc., a leading supply chain management software vendor specializing in shelf-level replenishment of consumer entertainment product, was founded in 1998 by Ray Young, who sensed a need from the home entertainment divisions of movie studios and other content owners to take a more active role in making sure their retailers have enough product on every shelf to meet the demand during the increasingly short sales windows for their products, while also reducing both out of stock and returned items. Success in the fast-paced world of the home entertainment supply chain has prepared WebConcepts to take these solutions to other industries as well, resulting in a recent expansion into the videogame market in partnership with Ditan and consumer electronics in partnership with Motorola. The nature of the supply chain business has also changed, according to Young who relates: "We have found out that our solution has a broader reach, not just in the home entertainment business. Our early success with VMI was critical but we have learned that just doing VMI isn't enough. What customers need to do today is try to align all the various groups throughout the organization to leverage the information that they currently collect. With our tools, they can do replenishment effectively but how do they utilize that data to shape the demand and help in sales development, marketing as well as in product development? These are actually more important questions that we are now helping them address. How do we help their sales, marketing, finance, operations and IT come together and utilize the data they have to help them make better business decisions?" The City of Industry, California-based company (http://www.wcisoft.com) continues to service Paramount, Sony Pictures, MGM and Buena Vista Home Entertainment with its vendor managed inventory solution (eVMI) that focuses on item/shelf optimization and replenishment. A former studio consultant, Young has developed supply chain solutions for more than 20 years. He noted that WebConcepts' eVMI solution is suited for any high-volume, high-turn retail product, while it was originally designed with DVDs, CDs, video games and software in mind. Always moving forward, WebConcepts has reacted to the changing dynamics of today's supply chain needs. Young adds: "We have developed a series of retail analytics tools that allow users to bring in outside data and combine it with the downstream data they have within the system and slice and dice it into different categories. The whole process is becoming more collaborative today and that has created a challenge for a solutions provider not just to be good in technology but to address the business as a whole at the same time. "Some of the data they need are not in their system; as a result the system has to be open to various inputs that help them shape the business and help them gain insight into the demand and consumer profiles. There is going to be a convergence of operations and sales and marketing and it is all going to be a very fine line." What lessons can WebConcepts take to other industries? Young explains that many other products are becoming increasingly similar to entertainment. Cellular phones, for example, are becoming more of a fashion-driven business with shorter shelf lifecycles. The videogame business is also becoming more challenging, though for the time being price is being protected, the sales window is longer and the publishers do not have to deal with returns. However, the advent of digital delivery is going to impact all product categories, he says. "One of the biggest impacts of digital delivery will be that the consumer will have more power," Young says. " The market will get much bigger but conditions will also become much more dynamic. You will have a shorter time to make a decision with a bigger set of data that you need to go through." Jun 6, 2007, 15:45 RFID MEETS HOLLYWOOD The value of tagging home entertainment products such as DVDs, games and music with radio frequency identification (RFID) tags will be the topic of several sessions at the Second Annual Entertainment Supply Chain Academy (ESCA), June 27-28, at the Hyatt Regency Century Plaza Hotel, in Los Angeles. "If P&G was a Hollywood studio making DVDs, those products would be in that top tier of (RFID) advantaged products,” said Procter & Gamble Vice President and RFID/EPC Leader Dick Cantwell, who will be speaking at ESCA. “Not only are they time sensitive products that need to be on the shelves when advertising breaks, but they are a high-value purchase that can afford the cost of a tag on a display." EPCglobal, the worldwide, multi-industry RFID standards organization, has begun working with the Hollywood community to evaluate the technology's supply chain benefits to entertainment products. In some cases, RFID tagging is in place for pallet shipments of DVDs to leading mass merchandisers. Promotional display and item-level tagging are the next frontiers. Questions about the technology and its application to the entertainment category will be answered at ESCA by leading authorities, including: Kori Belzer, COO, SPAR Dick Cantwell, Vice President, Procter & Gamble Khaled Haram, Vice President, IT, Handleman Dr. Sanjay Sarma, Professor, MIT, Member, Board of Governors, EPCGlobal John Seaner, Vice President, Industry Development, EPCGlobal USA Phil Therrien, EPC Manager, Customer Supply Chain Strategy & Development, Kimberly-Clark Vivian Underwood, Senior Project Analyst, Anderson Merchandisers Kori Belzer, COO of leading retail merchandiser SPAR, added, "Tracking promotions and managing products at the store level are our main focus, and RFID technology helps puts us ahead of the game. We are taking the next step and making this investment to help our manufacturers and retail customers." In addition, the program will include an exclusive presentation by Kestrel Wireless, which has designed an RFID-like technology to thwart the theft of DVDs by disabling the media until the point of sale. ESCA was founded in 2006 to inform entertainment senior management about changing dynamics and technologies in the supply chain for video, audio and games. The event is produced annually in cooperation with DEG: The Digital Entertainment Group, the forum for ongoing discussions about DVD and other emerging digital technologies. Jun 6, 2007, 15:36 P&G Executive Brings RFID Expertise to ESCA What do razor blades have to do with DVDs? When it comes to in-store promotions, the answer is "everything" -- especially when it involves experience with the use of RFID to track promotional displays and new product introductions at retail. Consumer packaged goods giant Procter & Gamble has taken a leadership role in the adoption of RFID for just such applications and heading the charge at P&G is Vice President and RFID/EPC Leader Dick Cantwell who has been at the forefront of demonstrating greater supply chain visibility, reducing out-of-stocks, and superior promotional execution with the use of Radio Frequency Identification (RFID) tags. Cantwell joined P&G as part of the merger with The Gillette Company in 2005. At Gillette, he has directed his company's involvement in RFID and was a co-founder of the Auto-ID Center at the Massachusetts Institute of Technology (MIT) in 1999. He was elected Chairman of the Auto-ID Center Board of Overseers in 2001. In 2003, EPCglobal was formed to be the global, multi-industry and user-driven standards organization to commercialize RFID in the form of The Electronic Product Code and Cantwell was elected to be the first Chairman of its Board of Governors. He has since been reelected to the post, which he currently holds today. Cantwell will be bringing his RFID experience to ESCA in June and he provided the following insights into the value of this new technology to the entertainment industry in this exclusive ESCA 2007 interview: Q. How did you get started in RFID? A. I am career-marketing guy; I first worked at Johnson & Johnson and then Gillette where I have worked for 23 years. I've been involved with most of the hit brands over the years and when I began working on our blade and razor business it became apparent that one of the biggest problems was that our products weren't always available on the shelf when they needed to be. I became involved with RFID in order to keep us on the shelf especially during new product launches and promotional events when consumers were being driven to the stores by our advertising and marketing campaigns. Today, RFID is part of both P&G's strategy and vision. We see it as a way of creating value for P&G and ultimately for the consumer. We call its value "Actionable Visibility," which means that if we can see more about our products we can do more about our products and sell more of our products. Q. How do you turn "Actionable Visibility” into sales? A. We turn that RFID data into business intelligence; it is like a crystal ball; it tells us where our products are and where they aren't. It allows us to work with our customers so that we can install work process improvements to change the ways we get our products to the shelf and, ultimately, improve and increase results. Q. Once P&G decided to pursue an RFID strategy, how did you adopt the technology into your work processes? A. At P&G we have adopted a so-called "EPC-Advantaged" strategy. We have done a portfolio analysis of all our products and are focusing our efforts with RFID on those events, those products, and those promotions where we can deliver value now, and ultimately provide greater shopper satisfaction. We have created three tiers: the top tier includes the "advantaged products," products we can deliver value from right now from a promotional event; this includes products like Gillette razor blades and Crest White Strips. Next are "testable products," where the business case is not there yet, where there may be some technical challenges or where the business needs are not ready for prime time. The next tier are "challenged products," those that have the lowest ROI at this point or present real technical challenges, such as being high in metal or liquid content. We obviously spend most of our money on the advantaged products Q. And where have you seen the most ROI for those advantaged products? A. We have decided to go after promotional displays as key opportunities. Consumer packaged goods are driven by newness and excitement and wrapping some promotional spin around a product to pull people into a store. It is shocking that only 45% of our events were being executed properly, which meant that 55% of our events never got to the retail floor on time; in fact, some never got to the floor at all. I have examples of displays that were actually taken out to the retail floor after the holiday promotion had passed. In CPG we also know that 30% of the displays that we invest in building are broken down and never put out on the floor at all; obviously there is often some type of a process breakdown in the store. Today we are using RFID to change these processes, providing us with alerts so that we are finding the displays in the back room and putting them out on the floor when and where they belong and making sure they are being used. This is creating pay out at about twice the hurdle rate that P&G uses to judge the value of its marketing investments and this is only going to deliver more ROI as the tags come down in price and as tagging becomes a more automated process. Not only can we generate a return on the investment that the company expects but we can expect significant top-line growth due to the adoption of RFID technology. Q. How does this apply to entertainment products? A. I think this applies to any high margin, high velocity, event driven products that are time sensitive. I think the lesson to be learned by the studios is exactly what the CPG industry has learned, that RFID has its biggest ROI on big demand driving events that are not always being executed properly at retail. If P&G was a Hollywood studio making DVDs, those products would be in that top tier of advantaged products; not only are they time sensitive that need to be on the shelves when advertising breaks, but they are a fairly high-value purchase that can afford the cost of a 15 cent tag on a display. At P&G we are not tagging individual items; we are tagging cases, inner packs, pallets, displays and promotional fixtures, all of which we can track to the selling floor. Q. Once you can track the promotion, how do you turn that visibility into Actionable Visibility? A. We collect data at the point where our products pass a reader field, from the back room to the floor to the box crusher. With all of that data we associate it with point-of-sale data and do the necessary business analytics, which allow us to generate alerts, telling store staffs or merchandising store staffs to take action; it is a very robust system based upon the retailer and vendor sharing information. Q. How do you recommend that a studio get started with RFID? A. Test and learn. It is very possible today for vendors out there to design and execute a small-scale test that will show them the kind of value that you can obtain from an RFID deployment. It is critically important that you have some very senior leaders on your team who are willing to lean forward and who understand the promise and future opportunity of the technology, who see it as a game changer and who see how it will redefine merchandising and give cross-functional teams the ability to think beyond what they can do today and put a stake in the future and map a course to the future, all the while doing course corrections as they learn. When we started down this path, we had no idea that promotional displays were such an opportunity, for example. Today we are getting more and more diagnostic data on what type of promotions are optimum and we are going to rewrite the book on ways to how to build our merchandising moving forward. Q. What type of cross-functional teams are you referring to? A. Without question you need to involve the marketers and merchandisers in your company in the process...that is where the rubber meets the road in terms of driving promotions and sales; with them involved the supply chain becomes a vehicle to enable marketing to do its job better. IT is also a natural partner since it is the part of the company that wires and engineers and enables the technology to work. For RFID to work it needs to go end-to-end across the entire organization. Q. Can you quantify the improvements that RFID has made for P&G? A. We have been able to generate a 10-20% uplift in promotional sales. With our Fusion razor launch we saw a 93% display execution within three days; of course that was a big event, but it was because we had visibility that we were able to make such a difference, Q. What about some of the "bad press" that Wal-Mart's RFID initiative has received in the business media? A. Early on everyone was fearful that we were being mandated to do RFID by Wal-Mart. We have moved past that. Everyone is emphasizing real value now; displaying execution excellence is something every retailer wants, and it is something that every supplier wants as well. It is true that the single largest customer that is ramping up with RFID is Wal-Mart; they have 1,000 stores that have been RFID-enabled and they are going to double that by this time next year. But this is a disruptive technology; it is future facing; we only know what we don't know; we are inventing a future that has never been built before. What Wal-Mart has done is that it has put a stake in the ground by saying that this is what they want to do. As we work with Wal-Mart, we all discover new things. Wal-Mart is always course correcting, always looking at better ways to enable and deploy RFID. This is where some of the press misses the point. Maybe Wal-Mart is installing RFID in fewer stores or may be focusing more attention on certain business applications and product categories but going much deeper in its exploration. This may be perceived by the media as Wal-Mart slowing down its RFID process while actually they are only going through a natural discovery process - like all of us. May 30, 2007, 15:34 Teradata Releases Digital Blueprint for Entertainment Industry As part of its recent focus on offering an integrated data solution for entertainment companies, Teradata has announced the release of its first Logical Data Model (LDM) for the Media & Entertainment Industry; this data "blueprint" provides studios with a single, integrated strategy for managing all market information throughout their enterprise for a single title. "The M&E LDM is similar to logical data modes we have successfully introduced to other industries such as telecommunications," says Teradata Vice President for its Communications, Media and Entertainment (CM&E) group, Tony Samuels. "It shows studios how they can integrate their data holistically, how they can integrate their channels, their products, their rights and royalties and their supply chain around a specific title." May 21, 2007, 17:15 EXCLUSIVE REPORT: Guidelines for New Product Development in Home Entertainment By Devendra Mishra If product innovation is the lifeline of business for sales growth and profitability, the recent IBM Summit for Consumer Electronics Emerging Technologies, held in the Bay Area in early May, could very well have been one of the most important conference events of the year. At the Summit, co-sponsored by the law firm Orrick, Herrington and Sutcliffe and IBM, George Bailey, General Manager of Global Electronics Industry at IBM, reminded a VIP audience of senior CE executives that perhaps more than any other industry, the consumer electronics industry relies on continuous innovation, and that to be successful, CE companies must focus on delivering integrated solutions to consumers, not just innovative products. May 17, 2007, 09:55 Verizon FIOS Exec To Address Changing VOD Supply Chain at ESCA As video-on-demand (VOD) becomes an increasingly important distribution channel for new release and catalog entertainment, Terry Denson, Vice President – FiOS TV Content Strategy & Acquisition, will be presenting an overview of the telecom giant's current home entertainment business and its strategy for the future at Entertainment Supply Chain Academy (ESCA) in June. Now in 400,000 households, and growing at a clip of 2,000 per day, Verizon's fully-digital service provides over 8,000 titles directly to consumers in over ten markets. As VOD increases in consumer awareness, due to Comcast's penetration in 30 million households nationwide, how the home video industry coexists and actually profits from this emerging distribution channel will be the theme of Denson's keynote presentation. "We are creating a new market...a new opportunity for the studios," he explains. "The nice thing about video on demand is that it is a rental in its purest form; it provides 24-hour a day usage, the reporting is accurate and the revenue, depending on who you are dealing with, is almost instant. Importantly for the ESCA attendees, if the studios and operators work together in a partnership, we can find ways to use this channel to promote retail products." Denson is responsible for Verizon FiOS TV content-strategy as well as video-content acquisition and partnership management, where he directs creation and implementation of the company’s video product packaging, pricing and marketing strategies and video content acquisitions. "Early on studios were reluctant to participate in VOD because they didn't want to jeopardize their retail revenue stream. Today you have a meaningful business and with digital rights management is in place, it is a win/win for the operator and the studio. We've actually grown the market. VOD can be used to promote studios and movies and keep them relevant." Denson's keynote message will emphasize that, from a creative perspective, the operators and studios have a new opportunity to create an additional market -- whether it is a studio-specific subscription service (i.e., the Sony Club) or e-commerce enabled programming. Verizon technologies that are on the horizon will provide content holders with opportunities to upsell the consumer the DVD, provide them with a retail incentive, or offer them merchandise. Integrated platforms with the Verizon mobile networks will also be able to deliver trailers or clips similar to those the company created in cooperation with the Tribeca Film Festival in New York in May. "Obviously, risk assessment is the primary issue when we sit down with a content provider. But once we start looking at VOD as its own platform with important ancillary revenue, two reasonable parties can usually solve the initial business challenge and create an entirely new business model for profitable digital distribution." May 16, 2007, 21:01 Home Video Studios to Focus on DVD and Digital Download Supply Chain Issues at ESCA 2007 LOS ANGELES – Senior-level executives from five major home video studios will be featured presenters at the Second Annual Entertainment Supply Chain Academy (ESCA), June 27-28, 2007 at the Hyatt Regency Century Plaza Hotel in Los Angeles. The panelists will provide insights into the growing emphasis being placed on creating a best-in-class supply chain for DVDs as well as digital downloads throughout the Hollywood community. "The home video supply chain is at a strategic point in its development," explains Buena Vista Worldwide Home Entertainment President Bob Chapek, who also serves as President of DEG: The Digital Entertainment Group, a founding sponsor of the Academy. "As we continue to perfect our processes for the delivery of physical media products like DVD, we are also now developing systems for the digital distribution of our content via the Internet. How we manage our core DVD business while nurturing an emerging distribution channel is a topic of vital discussion among the studios and their customers." To serve this objective, executives from leading studios served as an Advisory Board for the ESCA 2007 conference, assuring that the program provides the most relevant content and presentations; the ESCA 2007 Advisory Board members includes: Akin Ceylan, Executive Vice President of Operations, Lionsgate Entertainment; Aodan Coburn, Executive Vice President, Worldwide Operations, Sony Pictures Home Entertainment; Tom Emrey, Senior Vice President and Chief Financial Officer, Universal Studios Home Entertainment; John Quinn, Executive Vice President, Worldwide Supply Chain Management, Warner Home Video; Bill Segil, Senior Vice President of Worldwide Operations, Buena Vista Home Entertainment; Americo Silva, Senior Vice President, Worldwide Operations, Paramount Home Entertainment; Amy Jo Smith, Executive Director, DEG: The Digital Entertainment Group. Representatives from the ESCA Advisory Board will serve as panelists on a session entitled: "Supply Chain Execution In the Product Life Cycle of DVD," which will be moderated by Home Media Magazine publisher TK Arnold. Two other panels will explore information technology support for the entertainment supply chain within the studios as well as between the studios and their retail customers. A CIO Roundtable entitled: "Leveraging IT for Enhanced Supply Chain Execution" and a follow-up session focusing on "Orchestrating Data Synchronization in the Supply Chain" will feature high-level IT executives from home video studios including: Ken Agena, Vice President, Application Services, Warner Home Video Worldwide Management Information Services; Dave Cortese, Vice President, Division CIO, Sony Pictures Home Entertainment; Mary Kane, Vice President of Applications, Paramount Home Entertainment; Jerry McGlynn, Vice President, Information Technology, Buena Vista Home Entertainment; Theresa Miller, Senior Vice President, Information Technology, Lionsgate Home Entertainment ESCA was founded in 2006 to inform entertainment senior management about changing dynamics and technologies in the entertainment supply chain for recorded media (video, audio, games) as well as new digital download services. The event is produced annually in cooperation with DEG: The Digital Entertainment Group, which was founded in 1997 as a nonprofit trade consortium dedicated to promoting DVD-Video, and which has since been re-chartered to serve as a forum for ongoing discussions about DVD and other emerging digital technologies. For more information about the ESCA 2007 and to register visit: www.entertainmentsupplychain.com May 16, 2007, 18:52 Can Hewlett Packard Revolutionize the DVD? (From Business 2.0) A recent article in Business 2.0 explores the activities of Hewlett Packard in Hollywood and provides insights into issues that HP's executives will be presenting at Entertainment Supply Chain Academy. The article writes: "Who will cash in when Hollywood goes digital? The studios are racing to serve a public that's hungry - and willing to pay - for high-quality video delivered on demand. The retailers want their share too; witness Amazon.com, Apple and Netflix jockeying to position themselves as America's favorite online download store. And then there's Hewlett-Packard. The tech giant best known for calculators, printers and PCs isn't exactly storming the entertainment establishment. But behind the scenes, HP executives have been quietly cozying up to Hollywood moguls and treating them the way they would any big clients: working hard to understand the nature of their problem and then crafting engineering solutions that tap into HP's strengths." Click here for the complete article: May 9, 2007, 08:57 Screenplay Perfects the Art of Streaming Video on the Web As home video studios begin the process of developing their own digital delivery supply chains, lessons can be learned from a wide range of sources -- many of which don't necessarily involve delivering full-length movies via the web directly to the home. In fact, one of the most advanced digital supply chains in home video comes from Seattle-based Screenplay Inc., which specializes in distributing promotional trailers for the studios and their home video divisions to a network of over 300 sites. There is no doubt that the consumer is reacting positively to digital delivery of home video content if Screenplay's numbers are any indication; the company went from 10 million people viewing content per month a year and a half ago to 250 million views per month last month. For the past five years Screenplay has been managing promotional trailers for the studios to both web sites and in-store locations, providing distribution services as well as campaign reporting and content management. On the front end, their experience in matching all content to leading metadata and show time sources are similar to that being experienced by post houses that are preparing videos for online distribution; however, ScreenPlay has done it for over 15,000 titles and adds between two and three hundred new ones per month -- so many formats, too little time. "We've learned that you don't need to get hung up on the format. When it comes to digital delivery of content the issues are the same whether you are dealing with promotional videos or the full-length feature," explains Screenplay President and CEO Mark Vrieling. "When a video is played on a website you are playing inside somebody's player. If your video spec is different then the player spec of the website, it is not going to play right. From a specification stand point it was easy when the studios were all sending tapes to the customers because the customer could transcode them into the specific spec that fit their player. When studios started sending their content digital, everyone started screaming because they were sending them at studio specifications rather then the sites specification; they were talking directly to their customers and didn't understand that there are still no standards out there and that steps need to be taken to properly prepare the files individually for every different destination. That is were ScreenPlay comes in, we have set up systems to take the tape in from the studio, transcode it the specific codec and specifications of the website and send the site a link to the content rather than the content itself, so control is maintained by the studio through us” The Internet provides an unprecedented level of control for the studios. "How do you control a DVD once it is out in the market? You can't," Vrieling adds. "However, from a centralized database with the appropriate business rules you can track and control the product all the way to the end user, which provides tremendous opportunities but still requires that tremendous attention be paid to the details of managing the various aspects of the digital supply chain. "Once the home video business is online it's all about building more and more sophisticated databases and tracking and control methods. It becomes less about the physical management of the content and more about getting the right controls, business rules and analytics in place." As such, Vrieling adds that his system has been developed to control many aspects that were very difficult to control in the physical world. Situations like take down of an asset for legal reasons, or roll-overs, whereby details like "coming soon" are changed to "now available" or a price change can be instantly enacted at all outlets via a simple business rule set by Screenplay or the content owner can make a change themselves from a secure website linked to the Screenplay database. Rights management can also be controlled automatically as well as the management of theft and illegal posting of content on unauthorized sites. "With great capabilities come great responsibilities," he says. "It is a different world...it is a different world, but it is an exciting one and one with so much possibility that I am thrilled to be a part of it." May 8, 2007, 15:30 Merchandising Firm Launches RFID Pilot Study At the upcoming Entertainment Supply Chain Academy in Los Angeles, June 27-28, SPAR, Inc. Chief Operating Officer Kori Belzer, will present updates on the merchandising company's RFID DVD pilot study at major mass merchandisers. SPAR is a leading in-store merchandising company with field offices in over eleven countries and a multi-billion dollar global client roster, including work for leading retailers including K-Mart and Circuit City. With over 4,500 merchandising specialists in the U.S. alone, making millions of store visits a year, Belzer explains, "we're the eyes, ears, arms and legs of the manufacturer, responsible for implementing programs on their behalf at store level. We insure that products are in the right locations at the right times" Belzer emphasizes that this is especially critical with DVD, a specific area with which they work directly with the studios while having partnerships with the retailers; they are a category service organization for DVD in Circuit City, for example. The forty-year old company began its merchandising services division in 1987 and currently works across all classes of trade, drug, grocery, mass and specialty outlets, providing expertise in the electronics area, while handling all other hard lines and consumer packaged goods. "With DVD new release street date timing is critical. We ensure the planogram integrity, that pricing is set, we manage the supply, we identify out of stocks, we process returns, we do inventory counts, we do everything that is necessary that assure maximum sell-through," Belzer explains. This especially applies to DVD promotions, which Belzer feels can benefit greatly from RFID technology, which is one of the subjects of the current SPAR pilot study; corrugate displays are being manually tagged and then tracked once they leave the back room and make their way onto the selling floor; SPAR's software provides data of how long the display is up and where it has been placed, and whether or not it stays there. Customers can view online a so-called Execution Map and watch store locations turn from red dots to green nationwide on their computer screens as the promotions hit the store floors. SPAR is a solution partner for EPCglobal US, the industry association responsible for driving the global, multi-industry adoption and implementation of RFID technology. The RFID program, which began in the fourth quarter of 2006, is part of an expansive investment in item-level radio tagging by SPAR, which includes the development of a suite of Internet-based, real-time reporting software that involves handheld readers as well as fixture tracking. Merchandising staffers wear badges that are individually tagged with RFID to provide remote monitoring of their in-store movements. "RFID is vital for retail because the biggest issue and biggest cost for them is finding good labor," Belzer says. "Retailers have tremendous turnover. Their first focus is the customer and helping them. Tracking promotions and managing products at the store level are our main focus and RFID technology helps puts us ahead of the game. We are taking this next step and making this investment to help our manufacturers and retail customers." May 8, 2007, 07:11 Teradata Turns Data into Dollars for Hollywood It all begins with data. How are leading retailers and content holders collaborating to improve the flow of information and the quality of their data? What lessons can be learned from build-outs in other industries that have adopted such systems? This will be the subject of a highlighted presentation at the Entertainment Supply Chain Academy, June 27-28, 2007 in Los Angeles, which will explore how retailers and home video companies are working closer to better align their data warehouses to assure better data synchronicity, resulting in more accurate business analysis. One of the panelists, Cheryl Wiebe, Engagement Partner, Communications, Media and Entertainment for Teradata, has extensive experience working on both sides of this equation for leading retailers and home entertainment studios. Her experience in organizing and implementing data warehouse and analytic application technology for numerous studios and retail clients. In fact, Teradata built the foundational data platform for Wal-Mart's RetailLink vendor collaboration hub. The $1.5 billon, San Diego-based division of POS giant NCR has over 1,000 installations worldwide and has been adding more than 100 customers worldwide annually. As one leading IT magazine recently wrote: "Data warehouse may no longer be the best way to describe what Teradata customers are doing with their repositories of increasingly detailed data. The stuff doesn't sit around; companies such as Harrah's Entertainment and Continental Airlines employ Teradata's 'active' data warehousing to immediately improve customer experiences. Rival technologies and vendors try, but it's tough to dislodge the enterprise data warehouse as the best way to deliver a single, consistent source of 'the truth' to support all user's data views." Wiebe further explains, "The time is right for home entertainment companies to pay closer attention to their data. They are seeing their ability to command high prices decreasing, thus, their margins are eroding, and there are continual increases in transportation; they are being squeezed from both directions and there are looming thoughts of digital download to deal with. If they are creative, by studying their data and the data on their vendors and customers they will probably find ideas that grow their top line and bottom line," Wiebe explains. Teradata is a relative newcomer to home video, having launched their Media & Entertainment (M&E) practice only four years ago, but they bring to Hollywood extensive vertical market success stories, particularly experiences in other perishable consumer goods categories like groceries. "The immediate opportunity that we always go for in a new space is to look at the data environment and make sure you are getting it right...not only within the walls of the home entertainment companies but also with their trading partners and with everyone in the supply chain. We have made huge inroads in financial, banking, retail, and communications this way and the end results have been significant. "One of the things Teradata espouses is to begin by cleaning house for all business transactions and collecting and storing them in a normalized fashion – an approach that requires a significant amount of data organization. Teradata advocates using one of its Industry Logical Data Models as the blueprint for this organizing task. Over time the programs you build to study the data may change, but at least the investment you made in collecting your data will remain stable. You build upon your investment in the data infrastructure to making it resilient, reliable and fast. Then, if all else fails, you still have your valuable information intact, which quickly is becoming one of the most important assets that any company has. "Our specific idea for home entertainment is to collect all of your data into one place -- from the time you are conceiving a new title to when you are sending out replenishment DVD shipments for catalog sales. The new release may be all about getting the initial right quantity out to the stores, while the long tail is about getting the right product at the right time and having a lot of history in both cases is essential." Wiebe explains that home video business traditionally views the DVD as having a three-part lifecycle: new release, the value or heavily promoted, and catalog. However, Teradata's view is that those three segments are actually part of a single demand curve. The business also tends to plan the distribution of these segments separately, from first allocation, to replenishment, to returns, whereas returns are simply a final stage of the supply chain, in their perspective. "Returns are just the result of an inaccurate planning approach; planning and execution of these processes should be more holistic; in this respect retailers have already made strides in bringing about integrated approaches to demand/supply planning." How will the digital supply chain alter this approach? It won't. "It will be a long time before the physical supply chain will ever go away. But in a digital world, it will be even more all about the data. The economics of delivering a product will now be the same for a hit as well as a long tail item." May 7, 2007, 16:13 The 'Long Tail' Meets Retail at ESCA 2007 Sonic Solutions will present the latest updates about their Manufacturing on Demand (MOD) technologies for retailers as part of the Digital Supply Chain Conference at ESCA 2007 in June. A presentation by DVD pioneer Jim Taylor, General Manager, Advanced Technology Group, Sonic Solutions, will explain how a new generation of in-store kiosks and recordable media will soon be providing retailers with an opportunity to provide extensive catalog offerings to customers, which otherwise would not be available due to shelf-space limitations. Similar to the digital photo finishing business, which has successfully turned do-it-yourself printers into in-store destinations, these DVD burning kiosks may have a significant impact on the future of physical media as well as the overall entertainment media supply chain. "The advantage to the retailer is that this isn't going to replace the traditional packaged goods channel for hit movies but it can still be used to replenish inventory when the shelves go dry. It solves the common problems of out of stocks and lack of shelf space, which in some cases cause 30 percent of consumers to go away empty handed. It will also help drive store traffic and keep customers in the stores for longer periods of time. Catalog content or niche markets such as children's or special interest genres can also be delivered with this type of automated, digital distribution system," Taylor explains. "In January Sonic publicly announced Qflix, a technology and IP licensing program to enable secure DVD-on-Demand solutions in the home as well as retail through DVD Kiosks. One of the early retail supporters of Sonic's program referenced in the release was drugstore chain Walgreens." Taylor adds that the technology, which has already been licensed to several DVD kiosk manufacturers, is expected to be introduced as a retrofit to existing in-store devices, as well as in new free-standing kiosks that are connected to the studio's digital supply chain via high-speed Internet connections. All content is stored on site in a system hard drive, which is protected from hacking with a technology similar to a cash machine ATM. "The lack of shrinkage is key advantage. A store can have 50,000 titles on site that can't be pilfered off the shelf. Part of what we are doing with this software infrastructure is offering high-level encryption, so that even if the hard drives are stolen the content can't be hacked into." In some retail environments, Taylor relates, LCD screens will be distributed throughout the store so that customers can browse available content wherever they like and order the disc from any aisle, before receiving the final product at the cash register on their way out the door. Some stores will be providing personal branding and retail offers on the ink-jetted packaging. In-store DVD burning will pre-date at-home versions for digital download services like Movielink, which is expected to debut next fall. In addition to the need for new blank media, at home users will first require a new generation of disc drives in order to download and burn, copy-protected versions of home videos. Next year you will begin to see CE devices, networked cable products and set top boxes all outfitted with the Qflix licensed logo. For the time-being, though, DVD burning kiosks address the supply chain needs of numerous outlets that need to provide the consumer attraction of home video offerings, without giving up valuable shelf-space, combining the benefits of digital delivery while satisfying the consumer preference of owning and collecting physical media. Taylor concludes: "Discs are not going to go away. The kiosk solution requires no inventory, involves no returns, experiences no shrinkage and it opens up a new channel of distribution for the studios while it helps consumers satisfy their growing demand for 'long tail' catalog content." May 7, 2007, 13:53 REPS Merchandising Organization Returns to Home Video The Handleman Company will be announcing its “return” to providing third-party merchandising services to the home video studios at the Entertainment Supply Chain Academy (ESCA) in June in Los Angeles; the company previously curtailed all of its services to the category in 1998. The move results from the acquisition of Murfreesboro, Tennessee-based REPS 18 months ago, which specializes in third-party merchandising for a range of consumer packaged goods products. This standalone organization currently handles the music category for Handleman as well as products for Gillette, P&G and other consumer package good companies. According to Handleman’s Vice President of Business Development, Mark Heidel, the company has meticulously rebuilt the REPS organization since its acquisition, now providing 400 full-time Territory Managers, 1,500 part-time Territory Assistants, 41 District Managers and five Regional Directors to support this direct-to-store merchandising organization. Additionally there are 50 national trainers responsible for all training requirements such as new project launches, new hire training and proficiency training on new technologies. “Our customers have seen the benefit of having sales reps with experience in the home entertainment category working directly with both the VMI and retail department leads. They focus on items such as supply chain opportunities, improving promotional placement and educating stores on new release benchmarks” he says. Heidel emphasizes that over the past ten years; the speed of information has increased dramatically, now demanding that data be provided overnight to the VMI. REPS accommodate these demands with the use of PDAs, laptops and Bluetooth scanners. “We are the eyes and ears of the VMI, which is critical for any new product launch; we need to understand all the new metrics and communicate if the product was placed, where it was placed, how long it was placed as well as provide feedback directly from the consumer,” Heidel adds. “Our number-one focus is on improving promotional execution. If you are providing consistent service day in and day out for the retailer, you earn their trust and they will in turn support you. Of course the strength of the title will drive your business, but better store relationships will always work to your advantage.” Though RFID hasn’t played a role in REPS activities at this point, Handleman has a dedicated RFID team and is considered one of the forerunners in the adoption of this technology. Even so, the REPS organization is still able to track a display from the moment it is built and are able to give the customer a visual of the supply chain for their promotion. “We have just launched new software to organize photographs of new release products. Our reps are able to identify pictures by store and date for customers to view through a real-time portal. This provides physical confirmation to our customers that their projects are being executed on time and in the way they want.” “Ultimately, it is our job to ensure that the right data flows to the customers to afford quick and accurate decisions and maximization of sales performance.” May 7, 2007, 13:51 DVD SUPPLY CHAIN: WHERE ARE THE KINKS? SUPPLY CHAIN MANAGEMENT: BECOMING EVERYONE’S BUSINESS Executive Summary: • Today the sales executives realize that they must understand and manage the demand-driven supply chain. • E-proof of delivery has the potential to really reduce the time and cost associated with charge backs for discrepancies • Broad use of EPC and utilization of RFID for electronic POD would significantly remove this expensive kink out of the supply chain.
SUPPLY CHAIN MANAGEMENT: BECOMING EVERYONE’S BUSINESS Over a decade ago when video sell thru became dominant in the home video industry, the operations executives launched direct store delivery and developed a competitive edge in the marketplace. Since then the triad of operations, information technology and sales and marketing executives have embraced on a holistic approach of supply chain management while moving from being manufacturing-centric to consumer-centric in the global market place. Apr 25, 2007, 20:00 AS WORLD’S COLLIDE: Managing the Physical and Digital Supply Chains
AS WORLD’S COLLIDE: Managing the Physical and Digital Supply Chains An interview with Consulting companies are all about great people; without the right ideas and communicators even the most established firm, with the most expansive global resources, will fail to provide the sustainable results that are required to maintain a company's position in its markets. Mar 30, 2007, 09:57 SECOND ANNUAL ENTERTAINMENT SUPPLY CHAIN ACADEMY SCHEDULED FOR JUNE 27-28, 2007 IN LOS ANGELES
Jan 29, 2007, 10:18 See Who Attended Last Year's Entertainment Supply Chain Academy Jan 28, 2007, 14:39 |
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