To order

call: +44 (0)20 7424 2820,
email: sales@screendigest.com
message using the form below

name

company name

email address

your message

Available - for individual purchase - to FULL subscribers of: Video Intelligence format: Print & PDF published: 26-Mar-08 pages: 30 - tables & charts: 56 Author/s Helen Davis Jayalath Dan Cryan Marie Bloomfield Territories covered Western Europe France, Germany, Italy, Spain, UK, North America USA, Companies covered Apple BBC Worldwide Blockbuster Blu-ray British Video Association Createspace Felix Group Hewlett-Packard Lovefilm MOD Systems Polar Frog Digital Portomedia Redbox Sony Pictures Starbucks TitleMatch Trans World Entertainment Wal-mart Walgreens Yunnan Telecom

The DVD business is approaching saturation point in key markets, with the release of thousands of new titles every year resulting in intense pressure on shelf space for brick-and-mortar retailers. Even for online retailers, the sheer volume of titles available is putting the supply chain under strain.

For retailers, the issue of how to reconcile the ever-expanding DVD catalogue with intense pressure on shelf space is becoming increasingly urgent. Meanwhile, for rights holders, there is growing concern that only the most popular titles can secure shelf space. Proponents of manufacturing-on-demand (MOD) argue that this technology has the potential to address these problems.

This report addresses the arrival of commercial MOD services that will enable retailers to offer content without the constraints associated with stocking extensive physical inventory. It assesses first phase DVD manufacturing on-demand solutions and looks ahead to next generation services that will support digital delivery to portable video devices and flash storage.

The report examines the MOD supply chain and compares in-store and online solutions, including detailed forecasts for both sectors in the US and Europe. It evaluates potential business models and technological hurdles, as well as profiling the service providers emerging in this sector. In addition, it offers a genre-by-genre analysis of MOD from a rights holder perspective and outlines opportunities and obstacles. The report also considers what impact this technology will have on specific retail channels, from specialist video retailers to non-traditional outlets.

Key findings:
The MOD market will initially be focused on 'long tail' content as rights holders move to exploit niche titles not considered commercially viable in the traditional DVD supply chain.
As the number of participating rights holders and retailers increases, the MOD market has the potential to expand to include more mainstream content.
Transactions through online MOD (e-tail solutions) will grow faster than in-store MOD (brick-and-mortar retail solutions) because the method of manufacturing is invisible to consumers so will not require them to adjust to new technology to the same extent as in-store solutions.
TV and other non-film content features heavily in MOD services and is often available on an episodic basis allowing consumers to create compilation DVDs.
Unlike the traditional DVD supply chain, MOD enables rights holders to monetise content with a short 'shelf life' such as sports fixtures.
Catalogue movies will dominate the MOD market as the sector develops with rights holders and retailers offering more library titles through these services.
At the outset, a large proportion much of the content accessible through MOD solutions will not be available through traditional distribution channels, meaning that MOD transactions will be largely incremental to the existing video business. However, as more mainstream content is made available the rate of cannibalisation will increase exponentially.

In the report:
Forecasts for in-store and online MOD transactions and spending in the US and Europe to 2012.
Breakdown of potential incremental and cannibalistic MOD transactions and spending to provide net DVD sales.
Assessment of current DVD landscape and potential impact of MOD solutions.
Analysis of the MOD supply chain, including examination of potential business models and insight into revenue splits and margins.
Identification of key players in the MOD space and their respective strategies.
Evaluation of rights holder opportunities and implications for the retail environment.

Table of contents

Executive Summary
Methodology

The DVD landscape

Manufacturing-on-demand
What is manufacturing-on-demand?
Back story
MOD solutions
Pros and cons of each model
Setting up an MOD solution
Business models
Supply chain
Technological issues
MOD service provider profiles

What does MOD offer the rights holder?
MOD as an opportunity
Potential obstacles for MOD
Which genres are suitable for MOD ?
MOD and the long tail

Retailer perspective
Diversification of video retail
Potential impact of MOD
MOD solutions in the field
Geographical concentration of MOD
MOD deployment by retail channel


Tables and charts

Executive Summary
In–store MOD genre splits
Online MOD genre splits

Market forecast
US: In–store MOD volume
US: In–store MOD value
US: Online MOD volume
US: Online MOD value
Europe: In–store MOD volume
Europe: In–store MOD value
Europe: Online MOD volume
Europe: Online MOD value

The DVD landscape
US: DVD titles released

Manufacturing-on-demand
US: Physical vs. digital retail 2007
Europe: Physical vs. digital retail 2007
MOD pricing scenarios
MOD flow of funds
Average MOD revenue split
Average off –the–shelf DVD revenue split
MOD revenue model 1: Catalogue movie
MOD revenue model 2: Children's programming
Broadband penetration vs. DVD penetration 2007: US & Europe
Download times
Digital retail market shares

What does MOD offer the rights holder?
Evolution of the DVD business: US & Europe
Europe: DVD sales by genre
US: DVD sales by genre
How the long tail works in the UK DVD market

Retailer perspective
UK: DVD retail market by retail channel
US: DVD retail market by retail channel
Evolution of DVD pricing in US & Europe
Relationship between time spent in–store and spending