Published:
04-Feb-10
Warner Home Video is to move DVD and Blu-ray Discs (BD) replication and distribution services from Canadian based Cinram to Technicolor by 31 July 2010. The termination of service to Warner will directly impact Cinram's operations in North America, Mexico, UK, France, Germany and Spain and ends the six year relationship between the two companies. Warner DVD replication and distribution accounted for 28 per cent of the total consolidated revenues for Cinram's replication arm, Cinram International, in 2009. The new 'long term' partnership between Technicolor and Warner covers 'other strategic technology initiatives' in addition to the optical disc replication which Technicolor expect to begin 1 August 2010. The partnership follows the culmination of a recent restructuring of Technicolor which included the shedding of a number of subsidiaries, the rebranding of it's French subsidiary Thomson and the restructuring of its debt; a process expected to be completed by February 2010.
Our take...
Cinram continues disc replication for other US majors Universal and Fox alongside smaller distributors such as Lionsgate. Technicolor already boasts replication contracts with Universal, Paramount, DreamWorks Animation and Disney. The addition of a valuable exclusive contract with Warner, arguably the largest of the studios, is likely to require further investment on the part of Technicolor particularly in its global BD replication capacity. The streamlining of the Technicolor business and debt restructuring was undoubtedly in preparation for acquiring the Warner contract. Long-term financial stability will have been a major consideration for the studio as would Technicolor's proven track record in digital delivery platforms.
