Can CD/DVD Duplicators Survive Without Flash Media Duplication?
June 1, 2007 by Mac Makhni.
It’s been a very hectic Summer. We’ve been busy expanding our operation and getting traction into several new markets including CD/DVD duplication and replication companies. In May, I was invited to speak at the MediaTech Show in Long Beach by IDDA (International Disc Duplicating Association). The focus of my presentation was to highlight how digital music downloads and “snacking” lifestyle has had a drastic impact on “physical” music sales and that flash memory media duplication offers a natural transition from CD/DVD duplication.
It’s risky to stay exclusively in optical media duplication and the timing to make the transition to flash media could not be better. Consider this:
- According to the Wall Street Journal, US music CD sales plunged 20% in the first quarter of 2007 and the Toronto Star reported that Canadian music CD and DVD sales plummeted 35% in the same time period.
- Music retailers such as Tower Records have gone out of business and Best Buy is reallocating music shelf space
- CD prices are under pressure by big-box retailer such as Walmart and margins are getting squeezed
The potential for preloaded flash memory media is huge and opens up some exciting new market opportunities particularly in the mobile space. There are many ways in which CD/DVD duplicators can benefit from Flame Imaging’s expertise as well as products and services. For example:
- Low risk end-to-end fulfillment services - Flame Imaging provides a complete range of services including sourcing the flash memory media, duplication, imprinting/labeling and packaging. Initially, CD/DVD duplicators can get flash duplication jobs fulfilled through us. This is a low risk, low cost approach to verifying the potential of a new opportunity. It also improves customer outreach by adding new customers or offering expanded services to existing customers.
- USB duplication systems have the lowest cost per slot and unparalleled support - our strategic partnership with altec has enabled us to bring world class duplication technology at excellent prices into the US and it’s backed by altec’s full 2 year warranty
- Extending current markets - we partner with CD/DVD duplicators to explore new market opportunities such as music/audio book publishers, mobile entertainment/gaming, navigation systems, movie studios, education, productivity software, etc.
There are amazing untapped opportunities in this space. This is just the tip of the iceberg.