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FEATURE ARTICLES
TDB,
April 2002, Volume 16, Number
4Bob
Olson, Vice President/General Manager, M3 Group
www.m3online.com
I am constantly amazed by the
robustness of our industry. While companies have often
failed to make the "technology transition"
as new computer platforms of media formats emerge,
the people continue to succeed. I am struck that the
face of the industry continues to change; and yet
there continues to be so many familiar faces.
- When
I was working for Trace Mountain, a company which
at the time manufactured 85 percent of the world's
floppy disk duplication equipment, our largest customers
were former software giants Lotus, Ashton-Tate (Dbase)
and Word Perfect. Trace Mountain is no more, but I
continue to see old co-workers in companies like Mediatechnics,
Eclipse, Bronway, MediaFORM, Macrovision, Trace Affex
and R-Quest. In fact, they continue, in many cases,
to provide products and services to the old Trace
customers, those that survived and didn't go the way
of the former software giants.
It is also striking how many
of those former Trace customers I continue to encounter
at industry events, companies like Corporate Disk,
Kopy-Rite,
ACP and Transmedia. These are companies that succeeded
in making the "technological transition" and are now
what we call "digital content service providers".
They may have once considered themselves floppy duplicators
or tape duplicators, but now they call themselves
replicators, duplicators, or fulfillment houses. They
also comprise a cottager industry that's been serving
filmmakers, record labels, software companies and
corporations for almost two decades. They have built
strong relationships with customers, provided values-added
services and helped their content owner customers
make the media technology transition.
While we continue to focus on
the giants of the movie, music, and software industries
it seems not enough attention is paid to these companies.
They broker replication, duplication, packaging distribution
and are constantly expanding to offer the services
the customers require. These companies have always
been on the leading edge of digital content delivery,
and today continue to be technology enablers for their
customers. Managing large customer bases with small
volumes, they manage to provide a product that looks
as good as any on the retail shelf, and make their
customer feel their project is as important as the
latest DVD movie release or hit CD.
These small duplicators/replicators
represent the 80 percent of companies doing 20 percent
of the business in our industry. They don't purchase
huge volumes of product, but represent solid, less
volatile companies with a demonstrated ability to
adapt to a changing technology landscape. They represent
a significant opportunity for companies wanting to
sell products to digital content providers. They can
teach many of the largest companies about customer
service; and if you learn the lesson, they make great
customers.
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