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. 

While last year's inaugural event was met by a mix of anticipation, curiosity, some skepticism, and optimism, this year's Academy not only reflects the overwhelming success of last year's event but also a keen understanding throughout the executive suites of the studios and their supply chain partners that we are facing a critical time in our industry.  I believe that Buena Vista Worldwide Home Entertainment President, and DEG President Bob Chapek expressed it best:

"The home video supply chain is at a strategic point in its development. 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."

This year's Academy reflects a mix of topics that will equip each of you with the information you need to  "perfect the physical while you develop the digital" supply chain.  Day One, you will note, focuses heavily on the day-to-day realities of managing the flow of information and  physical goods from manufacturing to the retail floor.  I would, in particular, like to welcome the large number of studio executives and IT experts who are joining us this year.  And, of course, the presence of two key executives from Wal-Mart, our nation's largest retailer and largest purveyor of entertainment products, is truly a conference programming coup that underlines the importance of our Academy to building profits in our maturing marketplace.

Day Two's program takes a bow to the future. Since the success of iTunes, the entire entertainment community is a buzz with anticipation about what digital delivery will mean to their operations.  While business models still need to be worked out and while consumer acceptance is still not fully proven when it comes to full-length movies, the fact remains that there is still a sizable amount of supply chain work that needs to be done to automate the digitizing and protection of assets, and creation of the back office functions that will truly determine if this is the "next big format" for the studios.

On a personal note, I would like to thank our Advisory Board, with key executives from each of the studios, for their hard work in directing our conference program this year.  Our sponsors have enabled us to expand our work and attract a conference program featuring over 70 experts in their fields, including companies like Procter & Gamble, Verizon and Kimberly-Clark that will provide us  with an outside perspective on the supply chain businesses -- both CPG and digital. And thank you for joining us. 

Ask your questions.  Meet and greet at our networking events.  Together we can build profits for the entire category and, ultimately, improve the consumer home entertainment experi