EXECUTIVE INTERVIEWS Protect Software GmbH Software Protect Optical Disc Solutions Disc Optical BeeFree Production BeeFree Managing Director Managing Managing Director Managing Managing Director Managing Managing Director Managing VolkmarBreitfeld Fabien Remblier Fabien kdg mediatech kdg DDD Solutions Michael Hosp Michael The Pavement The Zoltan TussaiZoltan Andy Evans Andy Mette Bono Mette Director Director still has a unique angle in that it servi servi it that in angle unique a has still Pavement The service. primary a as authoring offering still places few very are there as seeing anymore, word Evans worlds. DRM online and DVD the both in expertise have that companies few very are There online. content take help and media physical enhance that solutions bridge perfect the offer we online, and USB DVD, for solutions tion Software’sProtect protec- and content Stores) VOD Label (White FlickRocket Breitfeld marketplace. local the to tions solu- new offer rapidly and changes Bono unbeatable. propositions these makes prices low our course, of and, solutions latest the offer to order in available technology the of top on Westay projects. their complete to needs their and clients Bisdas converge. to continue industries these as advantage unique and powerful a us gives world, the around facilities five of footprint global our and expertise of scope This industries. electronics consumer and TV,software Digital game, video the for services testing of provider leading the as known also are industry,we film the for services ing test- and QA for provider service ing lead- the being to addition Hallen In table. We have extended the sales the extended Wehave table. the at are owners the since making decision- up speed to us allow that ny compa- privately-owned independent, an now is EDC publishers. and tors distribu- video labels, music pendent inde- targeting business the developing Fitzgerald question. in artist/programme the for support and advertising regional on concentrating and ties opportuni- sales maximising therefore periods, trading peak during support PR and marketing detailed and depth Q4. during release we titles and brands which select carefully can we label, and brand a as status and marketplace DVD the in standing our of because finally,And audience. of terms in ceed suc- series and programmes when and as see to platform broadcast own our have Wealso genre. DVD comedy stand-up the on foothold valuable a gain to us enables which agents, comedy leading the of some with ships Hall disc. regular your than more little a requires that title budget larger occasional the up pick still we and evenly,pretty Ffilm and TV music, ces or uniqueness in this crowded marketplace? crowded this in uniqueness or advantage comparative company's your see you do Where It means we can offer more in- more offer can we means It We have established relation- established Wehave Probably the ability to adapt to adapt to ability the Probably I don’t think ‘crowded’ is the is ‘crowded’ think don’t I We focus always on the on always Wefocus With FluxDVD (DVD2App), FluxDVD With EDC has been actively been has EDC - tractor serving the media industry,as media the serving tractor con- general a be to want you If uct. prod- perfect a deliver and produce to Hosp market. the in solutions VOD major other of resource and cost the of fraction a for solutions these delivered I hmv-on-demand. and Film4oD Movies, Online Media Virgin powers that product broadband the and service, on-demand movies cable Media Virgin the FilmFlex, delivered and architected I Movies, FilmFlex window.rights first the in studios movie the from films – content premium most the for services and ture infrastruc- VOD delivery) through tion acquisi- (content end-to-end full a built has who industry this in people few the of one I'm advantage? commercial mireality.company My my through delivery Video-on-Demand premium in Ingold business. packaged tainment enter- the to commitment term longer a and flexibility scale, demonstrate to us enabled has structure support and team sector.our ents in Investing independ- the in investment our port sup- to capability logistics and uring manufact strengthened have we this - Alongside Scandinavia. and Benelux France, Germany,UK, in the base and online delivery are seeing huge seeing are delivery online and DVD physical combine which tions Breitfeld authoring. Blu-ray was down cantly signifi- was that service The Greece. in here are thinks bad how think you if air fresh of breath small a is It tributors. dis- local our to directly content their sell always studios big the as market indie in grow small a saw we and others among services mastering DCP Bisdas year,past well. the as over lines ness busi- TV digital and game video our in growth significant seen also Wehave initiative. this in them support to us on depending are clients our as work ed UltraViolet-relat- in increase significant a seen we've and UltraViolet around functionality. streaming content and testing, portal interoperability,and device website ensure to market the from interest keen is quality,there image but and Today,content well. about just not it's as testing, of kinds the in evolution an year.been this has cially There espe- and years, few past the through significantly grown has formats, bution distri- digital to related Hallen Testing, over the past two years and which one diminished? one which and yearstwo past overthe grew one which offer, you services of range the Amongst As Head of Technologyof Head for As We have strong expertise in-house expertise strong Wehave 48 It is simply no longer sufficient longer no simply is It I offer technical consultancy technical offer I We offer the last two years two last the We offer Generally speaking solu- speaking Generally tent not many of us out there do. there out us of many not tent Lauchenauer product. better a get to vate inno- to eager and production the to hands-on is Everybody times. around turn- fast and prices good offer can we subtitling, to encoding from house in expertise all having and DVD in experience years’ 15 over with pany Kohlen etc; distribution. management, content packaging, and fulfillment like areas connected in diversification and flexibility enjoy we Also, strength. key our are focused solution management, customer proper services, of quality high a Maintaining MPAA-certified.and CDSA Weare player.European Eastern important most the of one is SRL Solutions Disc Tussai stereoscopy.the of quality the for world the around vals festi- at awards got that films several have we and content 3D in cialised spe- be to is Mine advantages. only but uniqueness, a has company tion Remblier sales. direct and consultancy multi-channel namely point, focal their as activities these ly precise- of care takes which division a created have we mediadirect kdg With operandi. modus and strategy your in sales direct especially and processes sales the include to have you are, we Fitzgerald present. at packaging special than rather cost of terms in margin increased an prefer retailers – decreased has material added Value-Netflix. and Lovefilm sites tion subscrip- iTunesmonthly through and on years, 2 past the over importance Hall work. the doing worthwhile it make try and streamline to processes our adjust to trying ly active- we're so going, are things way the are titles simple budget, low ume, vol- as discs make we how change to need the was grow did what but importance, in grew service No eye. an of blinking the in went and came Evans links. web adding and tracks audio and subtitles menus, the keeping apps, Android and iOS into DVDs verts con- which solution DVD2App new the of prospect the at excited very Weare corporates. for FlickRocket with stores and distribution tent con- online secure and market, ment and like releases DVD for Copy Digital Specifically growth. The Untouchables The Digital sales has increased in increased has sales Digital Digital Copy and BD-Live and Copy Digital Our strategic location. Optical location. strategic Our Being an independend com- independend an Being I don't think any produc- any think don't I DVD and music inde- music and DVD We produce 3D con- 3D Weproduce The Inbetweeners The in the entertain- the in One hears alarmist opinions about the rapid demise of pack- sumer often perceives more benefits from physical media, e.g. extras, porta- aged media in the face of online delivery. What is your view bility and ease-of-use, but there are also as to how long discs will be around? And what could become perceived downsides, e.g. media takes their main target market? up space and discs degrade. Discs will be around as long as the customer feels that they get more value from them and Hallen We believe that packaged lights the question of who owns the the studios feel they can monetise them Seth Hallen media will continue to be around for digital product. more than on-demand. CEO another decade. However, being able to earn revenues and profits from servic- Breitfeld Physical media will not go Lauchenauer Untill downloading Testronic Labs ing into these supply chains will certain- away and will stay the primary method become easier to access and operate ly be the primary challenge as services of premium video content delivery (next for both the consumer and the content become more commoditised. This in to TV) for at least the next 5 years in owner, there is no real rival to physical turn creates the challenge of making most regions. But online delivery will media. And we think discs will be sure we are innovative in making the start to have a real impact in terms of around for a long time. process more efficient. That approach price pressure and the need for enhanc- will continue to be an important focus ing physical content with online ele- Remblier I don't like online delivery. I for Testronic moving forward. ments like digital copy. love to have a disc and its leaflet in my hand! I am not a good customer for Bisdas In our market discs still play an Evans I think packaged media has a online delivery because I think it is too important role, but as things gets tighter few years to go because of the money much computer dependant. I think cloud John Fitzgerald from austerity measures people are it still brings in, and even at a year-on- is not a good way to store films and CEO looking for rental or free-to-air solutions. year decline of 11%, it's nowhere music. How do you access them when EDC GmbH being made up by online. Online just your mobile or your computer can't con- Bono I honestly believe there’s still a can't replace the profits yet for a few nect to the Internet? What if some kind demand for physical media for many years. of censors decide that this or that con- years to come, but the decrease will be tent is not good anymore and can in the number of titles worth releasing. Fitzgerald We feel that packaged destroy it on your cloud account? That's The focus should be in high quality – media does have a long life, though why I still buy Blu-rays, DVDs and CDs. both in content (sound, picture and estimates vary as to its lifespan. What added value) as well as packaging. we do see and expect is that different Tussai We think packaged media will products will appeal to different con- diminish in the coming 5 years, espe- Hall I believe DVD/BD will be around sumers. Discs will always have a place cially because of the online piracy, if no for at least the next 10-15 years, there with certain consumer groups and fans. important enforcement measures are are two factors holding back a sharp We firmly believe that one must be taken. This could go down the same Maria Ingold increase in online delivery – domestic steadfast in supporting the format and way as the vinyl. CEO broadband speed (and 4G mobile the customers. Diversification is key, but mireality networks) and the consumer’s confusion not at the cost of today’s and tomor- Kohlen The packaged media market over the varying digital formats and row’s business. is getting smaller, but I do believe Blu- lifespan of buying. This has been illus- ray will drive it for a few years. We trated with hesitancy over UltraViolet Ingold We hear about the decline of have not seen a VOD system delivering and also Bruce Willis’s battle with DVD and the increase of Blu-ray and the same quality and interactivity as Apple over his music collection! It high- on-demand. At the moment the con- Blu-ray. pendents have rapidly developed Technology. I've watched how con- In Blu-ray, we are now in actual fact the across all territories for us. This has seen sumers, who now have access to more first port of call for the indie suppliers. In further investment in Blu-ray as well as and more high-tech devices at home, line with market development, CD pro- growth in special packaging require- are now driving what they want from duction has, of course, declined. But as Panos Bisdas ments alongside full distribution solutions the industry – they want it everywhere a general contractor we are required to General Manager for customers who need turnkey solu- and they want it now! continually adapt our services to the Authorwave tions. We haven’t seen much diminish- new circumstances. ing services over the past 2 years. Lauchenauer 3D has grown for us, Logistics has also been a key but the corporate post-production nearly growth area for us for many years now. Remblier S3D is a growing market. disappeared for us. Indeed, this summer we opened up the My company grows with this market. third warehouse in five years and have We provide S3D expertise on corpo- Hosp Surprisingly enough, it is our tra- invested more than 3.5 million euros in rate movies, live captures of concerts, ditional area of replication that has our logistics site. We attach a great shows and events. This sector becomes grown. Last year, we climbed the ladder value to the fact that we have all of our an important part of our work. to become the leading ‘real’ independ- service expertise within our company. ent Blu-ray replicator in Europe. Virtually Our portfolio ranges from customer con- Ingold mireality launched in June all replicators call themselves independ- sultancy to IT. Thanks to the kdg Group’s 2012, building on my 5 years of expe- ent nowadays, but we have been oper- IT expertise, we can respond to cus- Leon Kohlen rience with FilmFlex Movies as Head of ating as such for more than 25 years. tomer requirements speedily and with Managing Director great flexibility. This in turn increases our i-Frame clout as a key logistics provider.
Tussai Fulfillment and packaging activi- ties increased significantly while replica- tion slightly decreased.
Kohlen Encoding, transcoding and subtitling is growing. More files are delivered digitally and need to be transcoded to a range of different formats, each fully compatible with the ecosystem it is needed for including Olivier Lauchenauer subtitle and audio languages. Director Pogo Films
49 The ever lower margins on Blu-ray discs makes the economics of BD authoring and independents. If the industry is to ensure the format survives then replication very challenging. What needs to happen, what features need to be harmonising the above is critical added, to make it a viable business for independents? for all elements of the supply chain to co-exist. Bisdas The main problem here is by clients to large one-stop shops integration with standard content that consumers have not been making it even harder for the inde- management systems and wide- Hosp Here, the MEDIA-TECH properly informed about the bene- pendent authoring houses. I don’t spread adoption of digital copy. organisation is very ably represent- fits of the Blu-ray format or even think it is a viable business going ing our interests when it comes to the main difference from DVD. As forward when less money is spent Fitzgerald I think there are many the question of royalties. The royal- a result almost everyone has an on the design and creation of a ways in which Blu-ray can become ties are a significant cost factor, HDTV, but very few know that only Blu-ray than is spent to make a the format of choice and this which leaves the replicators with a BD disc can offer the HD resolu- tape duplication of the master tape. depends on a number of factors practically no room for manoeuvre tion to optimise the TV. working together: Retail pricing due to the real market prices. Hall The cost of replication, mas- needs to reflect confidence in a Investments in Blu-ray are so high Bono One could think of joining tering, AACS, etc, needs to fall premium product. Distributor pric- that a ROI is only possible if the forces in order to compete with the markedly to ensure lower price conditions and performance on the pricing advantage a major studio points are viable at retail level. part of the licensor are reliable, has through quantity. The breakeven point for BD at clear and stable. But since the present is too high for indies to start-up costs for Blu-ray are dispro- Evans Forget features – they are release more BD titles than today. portionately higher than for the not wanted by clients – they just DVD ten years ago, we hope that add cost and lengthens the pro- Lauchenauer Consolidation the industry is not falling into the duction time. I wish HD-DVD had and the market needs to find its same destructive pattern again. won the war as it would have bottom level to grow again. pretty much satisfied the require- Remblier Once again, the new ments today and saved a lot of Tussai I consider Blu-ray will not support was a justification to hike money for everyone in licensing become attractive for medium-size ing are to be reasonable. prices. You want the Blu-ray market costs to Sony (AACS) and replica- replicators. Manufacturing costs are high due to grow? Sell them cheaper! tion upgrade to the lines. See if to two main factors – the cost of you can find any independent UK Breitfeld As lower margins do manufacturing equipment and Kohlen Volume and pricing will label actively using BD-Live, BD-J not allow for individual enhance- patent royalty. These costs should always be an issue. So, in order or Digital Copy. I don’t think there ments of the experience, auto - come down. Replication prices for the Blu-ray market to be a is anything you can do. mated ways of authoring, with little have already come down sharply viable business the volume needs Clients need discs made as additional work, become more and authoring costs are beginning to go up. Thus, more TV series and cheap and as fast as possible. important. I expect to see increased to follow suit which makes Blu-ray good back catalogue titles have to Added to that the inevitable move use of automated mastering, online a better business proposition for come to the market.
Given the apparent slower than expected take-up of displays come around 3D will be and Disney's A Christmas Carol all 3D, do you think 3D is here to stay or consumer here to stay. But remember it took showcase 3D at its best. These 10 years for HD to get going so are films that were designed in interest in stereoscopy is temporary? 3D will not become an overnight and for 3D. Many films and sports market fixture. events add 3D after the fact. Hallen Starting with cave paint- marketing that has surrounded Blu- Because the content wasn't creat- ings, through to photography, then ray 3D compared to the cinema. Hosp 3D will only succeed when ed with 3D in mind, and because moving pictures, sound color, HD, From an authoring perspective, it's it inspires consumers. That will be the Z-depth is often outwards only, and on…humans have an in-born, already creeping towards the fact the case when consumers can the experience is frequently not as insatiable, often inexplicable need that if 3D assets exist, then let's immerse themselves in these virtual good. Both poor 3D content and to re-create reality. Consumers will make a Blu-ray 3D as it also satis- spaces without glasses and without poor 3D hardware adversely continue to demand "3D" in rich fies the regular Blu-ray too – if it feeling dizzy. The ball is thus still in affect 3D interest. media and video games until the can be authored at the same cost the technology camp. Glasses-free next iteration of virtual reality of a regular BD. 3D TVs are already in existence, comes around. Is holographic but it will certainly still take a while projection next? Hall Personally, I believe 3D has until this new generation of devices yet to fully evolve into a format – finds its way into living rooms. Bono Seeing is believing, and I limited TV and products available don’t think the potential of actually for consumers to buy. Until con- Remblier Slower than expected? showing what the consumer is miss- sumers can watch 3D without 3DTV sales are better than HDTV ing has been explained fully, espe- glasses, the format will always be or 16/9 TVs used to be. What cially in the hardware stores. Many limited. People don’t want to put we need now is more broadcast- To make 3D successful there consumers don’t even know a BD on glasses for a long period of ers, more Blu-ray 3D discs, more needs to be a mix of technology player can play DVD as well – not time. contents, more money to produce that renders it well and content to mention how little more they contents. 3D is not just a gadget, it where 3D actually adds value. I would pay for the same 3D home Fitzgerald Interesting question. is a new way of watching content remember the first time I watched theatre equipment compared to the On researching the web, we find and I really think it is here to stay. Avatar in the cinema. I felt like I 2D version. Of course, 3D content that the first full-length 3D film was was an avatar in the film, just on is still lacking – at least in our local the Power of Love in 1922. On Tussai I think the stereoscopic the edge. It would be amazing if market. I am putting some hope in this basis 3D will always be interest is only temporary and that all 3D movies were like that every broadcasters to bring 3D forward. around and create interest in vari- 3D will remain a niche market. time. ous ways. Providing the films are Breitfeld It is here to stay, but made in a way that complements Ingold I delivered the 3D movie Kohlen 3D is here to stay, there will become successful only in this method of watching, I am sure on-demand service to Virgin Media is no way around it. Many con- niche markets. Most devices will the choice of 3D will be around cable, several days before BSkyB sumers already have a 3D TV support it, but I don’t see main- for some time to come. launched theirs. We learned a lot without even knowing it. We need stream content usage. about the variation in 3D during more content and 3D TV sets with Lauchenauer As it stands, with testing! 3D can be an incredibly glasses-free autostereoscopic Evans I'm not sure, mainly glasses, 3D is going to be a niche powerful experience, even with 3D systems to make it work for every- because of the poor consumer product. Once the glasses-free 3D glasses. Films like Avatar, Hugo body.
50 Do you see the arrival of 3D as the shot of adrenaline content exists. Distributors have to the Blu-ray disc format badly needs to progress in the promote this support. I think Avatar's Blu-ray 3D in October will market, or do you think consumers will make a success be a big success and will help to of Blu-ray irrespective of whether 3D develops? promote 3D and Blu-ray 3D.
Bisdas 3D is the same story as upturn in sales to enable the prod- Lauchenauer I think it helps Blu- BD; people do not fully understand uct to be seen as a success. ray to make it more special. But I HD and 3D, except in the cinema am not too sure if people under- context. Even though people have Fitzgerald All methods of sup- stand that a 3D Blu-ray disc is also a better knowledge of 3D cinema, porting and advancing the format a HD and 2D disc. 3D packaged media and 3D TVs should be welcomed and do not register yet in consumers’ embraced, providing we ensure Hosp It will still take some time shopping list. the consumer understands the prod- until 3D finally breaks through. In uct and its use and benefit. This I the meantime, one needs to see a Bono It should be the boost. believe is one of the simpler mes- greater household penetration of Again, I see the lack of awareness sages for the consumer to under- BD players that will push sales of as the problem, not the quality and stand. BD discs. The industry should advantages of the product. wake up to the unfortunate and Ingold As noted above, 3D can alarming fact that many consumers Breitfeld I don’t think 3D is a only make a positive difference if still don't know they can also play DVD. I think that will boost the BD critical factor from a consumer the viewing experience is enjoy- DVDs and CDs on their Blu-ray market more than 3D will do. perspective. able. When it's good it might player. make a difference. When it's bad, Tussai 3D may influence the Hall As previously mentioned, it certainly won't. Kohlen I don’t think 3D will help consolidation of the format, but it authoring and manufacture prices in the success of Blu-ray which we seems that it will not be the only need to drop before BD is seen on Remblier Blu-ray 3D could be all hoped for. We need more con- trigger for the future of BD. the same level as DVD. I don’t this shot of adrenaline. But con- tent like TV series and back cata- think 3D BD will see the necessary sumers have to know that 3D logue on Blu-ray as we do now on Evans Absolutely not.
Do you think the consumer take-up of 3D depends on the arrival of glasses-free 3D able selection of glasses-free TVs. 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 active shutter glasses systems? Lauchenauer It will be a niche untill the glass-less option comes along. Autostereoscopic 3D will Bisdas I think 3D might help BD cally. Only if and when that tech- Tech conference we witness a 3D come, but it will be interesting to more that the HD content, but nology renders well, will it be a TV solution without glasses (paral- see how the price will come 3DTVs must become glasses-free. pleasant enough experience and lax barrier method). So, the tech- down. I think TV manufacturers will Maybe with the arrival of auto- not a gimmick, like a lenticular nology exists. Again, this is a for- be very interested as they are stereoscopic 3DTVs consumers postcard. The best 3D is content mat choice and not totally reliant struggling to make money out of might start investing again in a that is rendered with 3D and view- on the glasses alone, although today’s TV sets. new technology. ing angles in mind. doing without glasses is important. Hosp Of course, it depends pre- Bono This is one of the problems Fitzgerald I have read recently Hall Yes, I do believe glasses-free cisely on this. But it will take anoth- faced by the current format. Good that researchers in South Korea systems are the way forward for er two to three years until the rele- quality glasses-free 3D is still years have already developed a concept 3D. I am guessing, but I believe vant devices have been sorted out away, but the hype around it for 3D images without glasses for we are at least 5 years away from and possibly another two years still makes consumers think it’s just the cinema, and at a recent Media consumers able to buy an afford- until their prices are attractive to around the corner. So, they hold the mass market. back from embracing today’s per- fectly good frame sequential 3D Remblier I don't think that glass- solution. 3D glasses are getting es-free 3DTVs will be there soon. ever more comfortable nowadays. Two reasons for that. First is that to have a good quality, autostereo- Breitfeld I don’t think we’ll see scopic 3D needs 4K or 8K TVs. high-quality glasses-free 3D TVs for And even with 8K TVs you still see family viewing within the next 10 lenticular artifacts. Second, years. The consumer electronics autostereoscopy requires 8 viewe- industry is entering a new phase ing angles, but broadcasters do where new technologies are deliv- not have the bandwidth to do that. ering diminishing returns. The focus The take-up of 3D needs only a is on content discovery and avail- few things: more broadcasters and ability on multi-platforms, not new more exclusive content. Also 3D experiences or formats. content is made to be seen in 3D and should not be broadcast in 2D. Evans I think it will have a defi- nite positive impact, but not what Tussai Yes, 3D depends signifi- we think as I'm concerned that cantly on the arrival of glasses-free consumers might have lost interest. autostereoscopic systems.
Ingold Not necessarily. Current Kohlen A high-quality glasses-free 3D takes advantage of existing system will boost the 3D market HD masters for side-by-side deliv- and will get the consumer to ery for 2 viewing-angles (left eye accept and buy 3D content. I do and right eye). Autostereoscopic think it will take 5 – 7 years before needs around 8 viewing angles to this technology is ready so it will view the set from different posi- display the same quality as 2D tions. It often renders this automati- does now.
51 Cloud-based UltraViolet digital copy is making inroads. Do you see it as potentially the sales of Blu-ray discs, but it is difficult to predict. increasing the sales of BD discs or be the death knell of packaged media? Kohlen I strongly believe it will Hallen The promise of UltraViolet is and a bunch of other Blu-ray fea- not penetrated the entire industry, increase the sale of BD discs. that it will support sales of pack- tures, there is a danger of inde- let alone reached the end con- Consumers do want a physical aged media and serve as a well- pendents never really grasping UV sumer in a significant way. To sur- copy to hold, share and give as a managed bridge to digital format, or taking quite some time to get vive packaged media will have to present. However, we can’t ignore creating better consumer confi- there. From an authoring house prove it has value that set it apart the digital world and adding a dence in home entertainment in perspective, we'll struggle to gain from online and cloud distribution. digital copy to the physical product general. As a studio service much additional revenue without will give the consumer more free- provider and supply chain partner, major investment. Tussai It can potentially increase dom to watch his title. we will do everything we can to support this promise. Hall Cloud-based digital copy will increase as mobile devices and What do you see as the opportunities, but also the Bisdas I think the studios’ inten- tablet sales increase, but I don’t see pitfalls associated with Digital Copy on a disc? tion is to use packaged media as UltraViolet as the death knell for a medium to involve more people packaged media. Consumers pre- in cloud-based distribution. It’s fer the physical product for keep- Bisdas Digital Copy on a disc Copy codes have been for sale on important to take the first step using sake values, and there is no confu- might represent a short window of eBay, but that could also be packaged media and train con- sion over formats and no lifespan opportunity for transcoding material looked at as advertising for the sumers to enter internet-connected for playability, unlike UV, as previ- for post-production houses. In the value of an UltraViolet Digital devices to download. ously mentioned. long term, every movie will be Copy! converted by the studios from their Fitzgerald Yes, potentially, I see inception and place on a cloud- Hall Opportunities – the ability to this increasing the sales of BD based platform for global distribu- own the product across a wide discs. This offers consumers another tion. The only thing they cannot do variety of formats, devices, etc, method or choice of accessing con- is to translate in local languages. ability to sidestep the high commis- tent. Over time it may become the sion levels charged by Apple, preferred method of watching Bono To me Digital Copy on a ability to control the size and com- movies. On hearing various con- disc is a waste of disc space that patibility of the file, protect with sumer panels, the consumer under- should be utilised to provide actual security codes, build an online DC standing remains low and this is physical content quality. Any digital library. Pitfalls – it annoys Apple the determining factor. copy should be cloud-based. This customers, as seen with The will also serve as a step towards Inbetweeners! There also needs to Ingold As with everything there enticing the consumer to adapt to be some tidying up in terms of the are a number of perspectives to UltraViolet. consumer downloading the file consider. Here we have the studio, from disc, it’s a bit cumbersome at the retailer, the suppliers and the Breitfeld Digital Copy gives cus- present, and the consumer needs customer! The studio, retailer and tomers legal ways for multi-platform to be able to control the size of suppliers all want to make money. consumption of their purchased the file so they can choose the The studio and suppliers (e.g. content while maintaining the safe- level of quality. Bono I am a big fan of transcoding companies, CDNs etc.) ty and compatibility of physical Ultraviolet, if implemented as can make money from this model. media. It can help sustain physical Fitzgerald Opportunities for intended. Underestimating con- Simply fulfilling the digital copy media sales and at the same time rights holders to gain more interac- sumers’ need for flexibility to watch from a BD disc doesn't allow a tion and knowledge and greater our content is one of the biggest non-studio retailer to generate rev- insights of their consumer. Pitfalls problems we as an industry have enue, unless they are also a seller are over innovation, consumer created. UltraViolet is a very good of physical media, like Walmart. intrusion and making a simple step towards gaining the con- Non-physical retailers can make message complex. sumers’ trust. I may be an optimist, more money by creating a digital- but I do believe UV will spread the only shop, allowing consumers to Lauchenauer Not too sure. digital use of legally consumed buy the Electronic Sell Through entertainment on all platforms. (EST) ownership file for say £9.99, Hosp Steve Jobs showed the rather than rent it for say £3.49. If music, then the telecommunications Breitfeld Ultra-Violet is one of the retailer receives 30% of that industry, how you can write history many solutions for Digital Copy. It sale (and the studio gets the other with new products and eventually is very clear that any form of digi- 70%) then EST or upsell from rental change entire industries. The tal copy helps sales of physical as purely digital would be financially recipe was frighteningly simple media. What is important to con- viable to the retailer. (therefore probably very difficult): tent owners is that the process of Customers don't want to be the products have to be simple, creating the digital copy is simple worse off with a digital copy. highly functional and attractive. and low cost, and delivers a great Where it represents perceived Digital Copy on a disc is certainly experience on every device. Our value, and they want to own the keep people away from piracy none of these at present. digital copy solution has been content, they will use that model, sources. Pitfalls are certainly the successful because it is available whether it is a Blu-ray or a digital- complexity and cost involved with Tussai Increase sales may be an today, requires no upfront invest- only copy. some Digital Copy solutions as opportunity, but this will assist the ment in tools, is very quick to well as the lack of compatibility. further spead of piracy, especially implement and has extremely low Lauchenauer Not too sure, we if this trend will be allowed in per unit costs. shall see how the market reacts to Evans Opportunities for who? Eastern Europe. downloads. I think streaming is None really for the authoring Evans I think it's a great idea to more appealing, a little bit like house or replicator, or to be honest Kohlen The opportunity is ease- hopefully extend the life of pack- Spotify, but that is a very very low the clients that own the content. of-use for the consumer. We need aged media whilst introducing cus- returns business. The companies hosting and stream- fast interactive access to the high tomers to cloud-based delivery. As ing the content – they could be quality content at any time and it stands, it's still only in the reach Hosp The concept is exciting; laughing! any place. Pitfalls are quality and of Hollywood studios as the entry there's no question about that. But it licenses. In Europe, there are many costs for independent labels is just is still, proverbially, up in the air. Ingold Again, this depends on small independent licensors of the too high. So, just like BD-Live, BD-J, That's because UltraViolet has still your perspective. Ultraviolet Digital same movie.
52 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?
Bisdas A smart TV, or a TV to be represent more the personal, indi- Hall I use a smart TV, and it is want to pay by transaction, the more precise, is the home media vidual screen. extremely useful for watching awareness of the service's brand, revolution. Laptops or tablets or Netflix and Lovefilm, but in my how easy it is to use (and pay for every other second screen is only Breitfeld In my opinion the TV opinion, that is all it is useful for at content) and on what and how for information purposes, not enter- will continue to be the central present. I don’t use it for internet and who with they want to con- tainment. A large TV screen for point for long-form video entertain- as it’s difficult to type in web sume it. cinema will always be what we ment for the foreseeable future. addresses and navigate. So, no, I want as the best viewing experi- The “smart” elements will enhance don’t think Smart TV is that revolu- Lauchenauer Could be mas- ence. So, smaller screens (smart- “live” TV with access to video- tionary. sive... but needs Apple to make a phone, tablet, laptopns, etc.) will related IP services such as catchup standard that everyone is going to only have a supporting function. TV, special-interest content and Fitzgerald The technology copy and get sued on…. digital copy of premium content. already exists and is popular in Bono Smart TV is a logical step Other screens are used primarily tablets, computers and so this Hosp The revolution lies in the towards the future way of consum- for short-form content and function- makes some sense naturally. At fact that the devices are now con- ing when, what and how you ality unrelated to video. some point families will reach a nected to one another with maxi- want. There is certainly a screen tipping point in terms of the num- mum convenience. You switch from for everything, Smart TV being the Evans I personally just don’t think ber of devices around the home. the smartphone, via the tablet, to ‘big screen’ and the heart of family they offer that much. The ones I've At this point they may want an the TV screen, use the smartphone home entertainment, while tablets, experienced just seem so clunky integrated solution. It could well or tablet as remote control, surf the smartphones, laptops perhaps and old school. be that competition will restrict this. web, load films in real time, play video games and take part in life- Ingold Most of what I've seen in size-image video conferences on the last decade has been an evo- the TV screen – just like we've lution, not a revolution. It's easily always wanted. possible to end up with a TV with Freeview or freesat, a Smart TV Tussai It seems this is the best interface with apps, a set-top box, solution for Internet-delivered con- a media server, a Blu-ray player tent in this part of the European with its apps, and a tablet/laptop continent, however it opens up and a smartphone on the sofa new dimensions and comfort zone next to you connected to the wire- for local “pirate content consumers less with their apps. So, there's generation.” choice! The service that customer uses Kohlen If the user interface would in their home, at that time, is the be up to scratch and the ease-of- one that wins. That may depend use speedy it would be a great on what content is available, what product. At the moment access is the quality is like, the cost of the slow and the quality is most of the service, whether they subscribe or time less than DVD.
How to you see Hollywood squaring the circle between the inexorable fall of high- Hosp Online digital delivery isn't a foregone conclusion. Added to revenue producing packaged media and the unstoppable rise of low-revenue this is the fact that margins for both generating online digital delivery? suppliers and service providers are extremely low. This means that Hallen This is the primary chal- opting for online delivery with a cally and attracts more buyers on there is still no supporting business lenge the industry is facing as lower bitrate, but still good HD both supports? model and the entire industry is consumers associate online view- picture. thus required move along via trial ing with "low-cost" or even "free.” Hall I don’t think Hollywood has and error. We believe that UltraViolet is a Breitfeld Markets change and a preference for packaged or crucial part of the solution to get companies must react to new digital media – it is very reliant on Kohlen Make the online digital consumers to understand the value customer requirements by develop- back-end revenue, but I don’t delivery work. Meaning a fast, and pay for the ability to view ing new products, services and believe it cares where the revenue easy-to-use and high quality experi- content -- especially premium con- channels to market, in this instance comes from, so long as it is there. ence that needs to be as good or tent – online and off-line across digital delivery. If you focus on better than Blu-ray. The user inter- multiple devices, and shared delivering customer value, profits Fitzgerald I think the tendency face need to be fast and friendly. among multiple users. will follow. will be for the two to become rev- enue channels for Hollywood and Bono I do believe that all is not Evans They can't. DVD was a choices for consumers. Both deliv- worth releasing on a physical unique moment in time. The good ery methods will offer different con- support. Let good quality replace times of DVD will never be seen sumption and ownership for which quantity. again. The world loved and consumer will pay in different adopted DVD from every angle, ways. Thus, studios and partners Bisdas In our times it’s difficult to but now with so many platforms, will continue to benefit and supply sell pricy discs to consumers when formats, devices, a new genera- the consumer with what they want. they can get the same content for tion of kids – there just won't be cheaper (of free) online albeit with the same effect ever seen again Tussai Online delivery is a a lower resolution. Though high anywhere on anything. process that will generate low bitrates Blu-ray discs may offer the quality productions. best quality, H.264 divx codecs Remblier Choices have to be now offer a very good video made. Is it still possible to continue Lauchenauer Digital downloads quality at lower bitrates. Squeezed to sell content with high prices and will slowly become more prof- by economic hardship, US and thus open the door to piracy or itable. It's still a mess out there for European consumers might be fine should the price come down drasti- the consumer.
53 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?
Hallen More user-friendly ability to you know how to work and watch, at anytime in the world, I want to (type or speak search terms), search, access, and catalog digi- with no interruptions or adverts sell- able to watch it, however and personal library addition (into my tal content; the ubiquity of every- ing you something. Oh yes, and wherever I choose: rights locker) and the ability to thing, which will be available on- trailers you can skip on a Disney ■ at super-high resolution, 22.1- create standard physical media. demand. disc! channel surround-sound ultra-plush Mini-shops would allow for the cinema (or even a very steep social aspect and physical browse Bisdas I think a better version of Hall High-speed broadband on cinema with high-backed, full- element (probably for high-value a WiFi internet TV with a voice all public transport so people can sensory seats that included content) and kiosks would have the recognition software instead of a watch TV and movies anywhere individualised audio (including ubiquity of bank machines and remote handset will be the best (not necessarily in the home!). subwoofer feel) to get around the replace large-scale stores as rising device for me. audio "sweet-spot" issue in rents close down large retail Fitzgerald Well, let’s have a go: cinemas); spaces and physical storage Bono UltraViolet is a good way. I a central HD server at home with ■ on-demand on my ultra-thin, self- facilities. This helps the want to see my blockbusters with no download requirements, that retracting (into a one-inch environment by only creating the maximum sound channels and understands each member of the transparent roll at ceiling level) content people want to consume. bitrate, be it 4K 3D BD, and my household and uploads content wireless OLED wall cinema; favorite TV series on a tablet in the and gives consumers instant ■ into my Gucci prescription Lauchenauer Something that background. Flexi-glass screens access. A kind of Home Sub- glasses that toggle to sunglasses in streams and I don't have to own. sounds like a great new way to Cloud. I hope the opportunity to daylight and display my computer Just call up and I can watch it on wallpaper your living-room! own a product will continue to be screen when I'm sitting on the tube, any device or screen I like. available and at the click of a controlled by voice recognition Breitfeld We have just done the button. and/or fingertip spatial-recognition Hosp In ten years, we will once Digital Copy for the Triple Play re- points for "touch-typing" and again be happily writing letters on release of the original Total Recall Ingold As a consumer who has gestures; paper and buying portable type- using our FlickRocket platform. So, seen way too many Star Trek ■ numerous mini-shops or kiosks writers at flea markets, because it yes, I would love to see some form episodes, if it's out anywhere and that allow global archive search reminds us of the good old days. of direct cortex delivery of But, in all seriousness, Siri (perhaps enhanced life experiences, using it will be called something different our upcoming Neural Copy and by then) will be able to read our DreamRocket systems. Not avail- thoughts and navigate us through able on packaged media, sorry. life whether we are online or offline. And because the best Evans Wow! Tough one. I'd love ideas come to us while we are there to be a revival of old school, sleeping, we will read them early just like there is with vinyl. A huge in the morning in the bathroom section of the market rejecting all mirror and then send them to the these new multi-screen, multi- office. On light particles, perhaps. device, subscription-based, no physically-owned content, uzi-9mm- Tussai Holographic interactivity superduper-whizzbang content with less and less physical remote transmitted directly into your brain control or touch screen maybe?! delivery mechanism……and a demand continues for a lovely Kohlen It will all be in a pink shiny disc with your favourite film cloud!
4,000-line Super HDTV is pointing on the horizon. Do you anticipate this to be the it is going be great, but I see it more for events and cinemas. next TV format? If so, could it lead to the arrival of a next-generation larger-capacity Blu-ray disc to deliver this content, given that broadband could be inadequate? Bono I certainly hope so, I love my bitrates! Bisdas Before packaged media sell Blu-rays carrying standard shot possible and it seems likely that might play a role in delivering higher HD produced programming. this is the next evolutionary step. Hosp This TV format is the condi- resolution content to Ultra HDTVs it However, both the content tion for a 3D space experience requires that content be produced Hall I don’t think this will be a far- availability (more than that pretty without the glasses. And yes, as it in that format in the first place. This reaching TV format. TV pictures are field of sunflowers) and desire to appears, we are therefore not only make take 2-4 years, which might already good quality through satel- consume it (i.e. it has a perceived reaching limits with the data net- give enough time for broadband to lite. Super HD is only for hardcore value) have to be there. Even with works again, but also with the per- offer higher speed and bitrates. tech and film buffs. I don’t see HD sets and HD set-top boxes manent optical storage media we people buying Super HDTV for being largely standard now, HD presently have available. Two Tussai At first glance it seems an evening viewing. VOD content, Blu-ray and some years ago, the BD 50 was consid- extreme technology which will only HD channels cost more to con- ered at the time as the last perma- be reserved for a small niche of Fitzgerald Super HDTV was on sume than Standard Definition. nent optical storage medium. customer who might notice the display at the Berlin Consumer Most of the research I've seen Things remain exciting in our indus- differentiation with HD. Electronics Trade Show [IFA]. It is seems to indicate a cost-conscious try, and we like it that way. very impressive. There is surely a trend amongst consumers right Breitfeld I don’t think there will possibility for a larger capacity now, so many consumers still Remblier I may be wrong, but I be another mainstream physical BD, but in my opinion not very watch in SD where cost is an don't believe in this format. media format for video after imminent at this stage. issue. The trade-off between quality Blu-ray. and cost has to be worth it, as Kohlen We can never have Ingold Advances in optimising we've seen with 3D uptake in the enough TV lines and bandwidth. I Evans I find it hard to believe that compression with, for example, home. do think it will be a big opportu - there will be a higher capacity disc H.265, a.k.a. High Efficiency nity for the next-generation larger- delivering 4,000 super HD con- Video Coding (HEVC), certainly Lauchenauer Broadband is capacity Blu-ray disc to display 4K tent, when they are struggling to make 4K Super HDTV technically already struggling with HD! I think video.
54 11/7/11 17:17:10
It is said that diversification is 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?
Hallen We are on an evolutionary Hall We are looking at alterna- path, and one example of that is tives to the retail market – we our emphasis on building a better already use marketplace business understanding of the consumer and online alongside Amazon, Play, how and why they interact with eBay, etc, and we are in the technology. We will continue to process of setting up an online enhance our offerings in user expe- shop within the Channel 4 website. rience and usability testing to pro- vide the valuable user data Remblier Even though we spe- required to create great user cialise in S3D, we are still working experiences. on 2D projects. Last year, 2D films accounted for half of our activities. Bisdas That is true, especially now I think this sector will decline over as every service must be very prof- the next years. itable as the economic crisis does not allow for big revenues. We Fitzgerald Because of the declin- have invested in a color correction ing packaged media market, EDC suite to provide services to clients engaged in a diversification pro- that prepared DCP version for cine- gramme a few years ago. While mas. Here, we cater mainly to the entertainment business will still indies and students. be a robust pillar in our strategy, we are increasing our range of You can harness this expertise to Bono Key is to manage any new logistics services to customers out- develop successful home entertainment technical solution in the most time side of the entertainment industry. and cost-effective way, alongside In addition, we are developing solutions across the web, apps, Blu-ray with implementing new, innovative new products based on our high ways of exploiting all the exiting precision moulding technology for and other devices. possibilities they offer. customers in other industries. We will use our depth of expe- Breitfeld I think we are well posi- rience in manufacturing micro-struc- tioned for the physical-to-digital tran- tured products with functional sur- sition. We already have solutions faces for totally new applications. for DVD, online and USB content The future is exciting and promising distribution for video, data, interac- in these new areas. tive and software. Our goal now is to expand Tussai We foresee that replication and diversify our geographic and will further decrease. Packaging channel offering, extending our activities will increase and we are partner network to get these solu- in the process of developing a con- tions to service providers, replica- nected activity which is warehous- tors and duplicators for their content ing and logistic services for our owner clients. clients.
Evans I don’t see us growing DVD Lauchenauer Now we are or Blu-ray at all – rather managing moving our core business to where its decline as a service we offer it is more profitable for us, which is before it's all taken away from us. production. The big guys like Deluxe and DADC will very soon complete the Hosp We see ourselves as a gen- wrap-up of the majority of the work eral contractor serving the media because budgets dictate that as industry. It is thus obvious that we much as possible gets done in one are constantly required to optimise, place – DVD, Blu-ray, UltraViolet, further develop or completely re- iTunes, VoD, etc. invent services. The Pavement does not offer the complete range so I expect a Kohlen I think we have found a large amount of work to be out of solid base in services that can be our reach. We need to either move used in several markets. Now, we out of the authoring market com- encode and transcode for DVD, pletely or just refocus on projects Blu-ray, Internet, Video-on-Demand from those who want to work with and Ultraviolet. There might be us like some music and director-led more formats coming out, but programmes we have relationships understanding video and having with. over 15 years’ experience in Our diversification is coming encoding we can deliver the best from new integrated areas with quality for each format. sister company Goldcrest which include short-form post-production (trailers, promos, epks, etc), mobile app development and a studio in New York opening up this Winter.
55 A last word?
Hosp Everything could be so company we have to have the CDs, DVDs or legal downloads. type of piracy, we propose that the simple as a replicator. We are all courage to address this situation This local “trend” also heavily main actors in our industry set up a part of a supply chain and want straight on. affects the level of Western pan-European collaboration with a an honest day’s pay for an honest We can only continue provid- European revenues. How? The view to developing a common set days’ work. Our industry, indeed ing excellent services and be a large majority of the locally- of measures destined to restrict the our world, seem to demand that reliable partner to our customers if established pirate sites full with the actions of those pirate websites. everything becomes ever cheaper, we receive a fair remuneration. latest blockbusters and valuable faster and better. So, we are con- catalogues are also accessible in Kohlen Video quality. It seems tinually pushing ourselves danger- Tussai In Eastern Europe, online Western Europe… over the years video quality is no ously to the limit. piracy is the main cause of the Several million of Eastern longer that important anymore, Over the years we replicators continuing fall in revenues in the European people are working in especially for the digital copy have contributed to a ruinous price media sector. Packaged media is Western Europe. Their habits market and VOD systems. We see war with the result that many of our directly affected by this. The lack regarding download has not many VOD systems playing digital competitors have close their doors. of even the most basic legal change with their West-bound or delivering digital files that could No doubt others will follow suit, actions for years against online migration – maybe slightly – but have been encoded with more because without margins, no busi- piracy has shaped the current local rumors confirm that actually passion to get a much better result. ness is sustainable. Some remain status where especially young they manage to teach their “prac- No need to encode files in the blind to this reality and continue generations don’t even think of tices” to the native population! The wrong aspect ratio, with tape playing the game until they are no spending any money for their results are easy to predict. errors, wrong levels and field longer around. As a reputable source of entertainment, meaning, As a solution to fighting this dominance errors!
AGI-Shorewood 5 Cinram BC Janine Pritchard 47 Screen Digest 16 Arishi Media Delga Press 21 kdg Mediatech 37 Software Protect 23 Technologies 55 DVD6C IBC Metropolis 35 Sony DCE 17 Authorwave 7 DVD Intelligence 46 MPEG LA 41 Sony DADC IFC BR Productions EDC 13 ODS 11 Testronic Labs 9 & Packaging 25 Futuresource 27 One-Blue 2 The Pavement 19
Index CDA Datenträger 33 i-Frame 15 Rovi 28-29 LTS Maroc 56
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