At Vinpower Digital, we are known for our OEM/ODM labeled standalone duplication products that are sold by the biggest companies in the optical media duplication field. A lesser known fact is that we work with many of the biggest manufactures of optical media discs and recordable drives. Because of our expertise in the field, many of these companies use us as their primary BETA tester. In addition, they also come to us when they want to develop a new product to get our input or to adopt our products into their designs.

Case in point is the new Plextor PX-DM300 compact 3 drive CD/DVD standalone duplicator recently on display at the DSE trade show in Tokyo, Japan from May 16 – 18, 2007. In a joint venture project with Plextor (one of the leading manufactures of optical media recordable drives), Vinpower Digital helped create this new compact slot drive system certain to make a global impact in theduplication market. We were chosen to work on this project because of our strong engineering background and the fact that we currently have the most reliable and functional standalone duplication controller on the market. Plus Plextor knew that we could meet their lengthy list of stringent requirements essential in order to brand this unit with the Plextor name.

The new Plextor PX-DM300 – a joint venture project between Plextor Corporation & Vinpower Digital	Our booth at the DSE trade show in Japan showing the PX-DM300

For more information on this new innovation, please click on the following link:

http://www.plextalk.com/jp/dw_data/ETC/copier_catalog.pdf

Look for more joint projects between Vinpower Digital and major Fortune 500 companies in the near future.

The battle between Blu-ray and HD DVD is still on-going with no signs of a clear leader. Blu-ray has the edge in that they have what appears to be a larger selection of supporters amongst the movie, game, software, and drive market. In fact, HD DVD does not even have a recordable drive on the market and Blu-ray is well into their second generation of recordable drives. The key advantages HD DVD seems to have right now is that the players are cheaper and it’s considerably less expensive for the replication plants to switch their lines to HD DVD as apposed to Blu-ray.

Recently both the HD DVD and Blu-ray camps have announced price reductions for various products. It’s clear that Toshiba (for HD DVD) is focused on trying to lure the video market by lower the price of their entry-level HD-A2 model players to $299.99 with in store rebate. This is approx. $300 lower than most Blu-ray players hoping to grab more consumers leading to a higher demand in HD DVD content.

Blu-ray is taking another approach by reaching out to a wider audience. Recently Pioneer announced that the BDC-2202 Blu-ray drive can be added to their PC systems for $300. The device also includes software that can record video from camcorders directly to DVD or Blu-ray discs. In trying to reach out to the growing consumer and business markets which are creating their own content, Blu-ray is attempting to reach a broader audience. Millions of drives are installed in PC’s every year as a standard accessory and Blu-ray looks to be preparing themselves to take over that market.

In the end, there are more players looking to offer dual capabilities so that you can play both the Blu-ray and HD DVD discs, as no one wants to have an obsolete player because the format they chose lost and went the way of the dinosaurs. Currently, only Blu-ray looks to be capitalizing on the recordable market and that could be the factor that swings success in their favor. We will see.

I read an interesting article recently on the mecca of information, www.cnn.com. It spoke of a new technology making the rounds for the optical disc industry to help the retail market prevent theft. The new technology is a microchip placed inside an optical media disc (i.e. CD, DVD, Blu-ray, etc.) that if not activated will render the entire disc useless. It’s a remarkable new technology that prevents critical information on a disc from being read by a DVD player, video game console, etc so that it’s completely inoperable. When this chip is activated, by sending and electronic pulse through the disc to turn the chip from a solid color to clear, the disc is playable.

This opens up a lot more options for retail outlets to carry these products without the fear of high theft rates. Due to the small size of optical discs, even in their packaging, they are an easy target for theft. It’s estimated that theft of electronic products including optical discs accounts for $400 million in loss revenue for retailers every year according to Entertainment Merchants Associations. With this new chip, retailers can display these items again with far less fear of loss due to theft. With more retailers willing to carry these products like movies, video games, etc., and fewer losses due to theft, sales for these items are certain to explode even more than the current levels.

This is a good time to start selling product on optical media or producing content and be ahead of the game.

On April 5^th, 2007, I wrote how LG was the first to announce the new combo Blu-ray/HD DVD drive. According to articles published on both PC World and PC Magazines online sites, Hewlett Packard (HP) will add these new drives to their line of retail personal computers. I see this as the first step toward moving a higher percentage of the consumer market toward the next generation hi-def video and larger storage capacity of the Blu-ray and HD DVD formats.

In this case, equipment suppliers such as HP are covering their bet by offering both formats so that if one format should win out over the other, their product will not become obsolete. No one wants to pay an extra $800 ~ $1,200 to include a next generation drive that may become an afterthought within a year. At this time, it’s impossible to determine who will win the format war to “replace” DVD and both formats may find a large enough customer base to co-exist, so HP, LG and I’m certain many to follow are going to gamble on the option with the lowest risk involved.

Personally, I’d wait and get the cheaper DVD writer instead. Customers are better off purchasing a single or multiple drive Blu-ray or HD DVD duplicator with a USB connection like the SharkBlu from Vinpower Digital. Why get a single drive tied to your computer like a tether, when the customer can get a multipurpose SharkBlu able to work as an external Blu-ray or HD DVD burner and portable duplicator. The price difference is negligible and the opportunities are far broader. If you’re going to step into the next generation of media, make sure you’re using the right equipment to produce and make copies of your master disc.

As I watch the basketball playoffs, it seems as though the players are getting younger and more talented every year. In fact young athletes are being groomed beginning in elementary school for a future in professional basketball. Throughout the country, there are basketball tournaments taking place where scouts from high schools, colleges and the pros are watching and critiquing these athletes to bring in the best for their programs. Since basketball is such a visual experience where video of an athlete can tell far more than their stats, there is always at least 1 videographer filming the games. These videographers create DVD’s showcasing not only the game itself, but also the individual athletes of interest. To disseminate these DVD’s the videographer typically has a mobile production studio with them including a standalone duplicator.

Videographers are making a lucrative living filming and distributing the DVD’s of various athletic events and athletes. With the prices of duplicators and blank media continuously falling, the cost of entry is lower and lower which means the return on investment often take place from the first event. I’m seeing more and more part time videographers leave their standard 9 to 5 so that they can focus on their new found career choice. Now when people think about having a career in sports, maybe they should think about life behind the camera instead of on the court.

I’m back from NAB and it was quite an experience. Since NAB focuses on broadcasting and dissemination of information on DVD and CD is a major part of the broadcast community, there were a significant number of people looking for duplication equipment. At the same time, with so many people looking for duplication equipment, there was a larger than average number of companies offering duplication equipment. Most shows we attend there are about a maximum of 5 companies exhibiting duplication equipment, this time there was at least 14 different companies.

With that many competitors, one would think this would be a difficult sell to vie for the throngs of patrons in need of such a product. However, we are uniquely position among the numerous exhibiters in that we supply or will supply over 60% of those companies with at least one version of our products. So it is in our best interest that not only do we gather greater interest at this show, but also that the companies that work with us also create a greater buzz, especially for the products we provide them.

Another thing I was hoping to see at this show is whether there was more momentum toward Blu-ray or HD DVD. The consensus is that all video is moving toward Hi Definition, but there is yet a clear consensus as to which format will win out. There of course was a lot of speculation, but that’s all it is at this point. In the duplication market, Blu-ray is leading because HD DVD does not even have a drive available yet. But the Blu-ray drives are in their infancy as well, so it’s not too late for HD DVD to jump into the mix. I never did get a clear answer that would lead me to declare either format the winner or eventual winner, so time will tell.

Fresh off the CeBIT trade show we are preparing to move full force back into another trade show next week. NAB is the National Association of Broadcasters and focuses on Radio and Television broadcasting and all aspects related to the industry. This is probably the most important trade show for our industry within North America and is evident by the number of companies in the duplicator profession who will exhibit there. Including Vinpower Digital, there will be at least 12 companies exhibiting that focus on optical disc duplication and/or printing.

Other companies my find this intimidating to have so many of their competitors within the same hall, but we are not the typical company. As a manufacture, many of those companies exhibiting are also our customers, so they are a unique blend of competition and cooperation for us. By diversifying our product line and working with a wide array of companies in the field, we are limiting our risk while increasing our overall volume. Since we have the ability to differentiate our equipment to provide unique operation or appearance for different companies, we are able to work with a wider segment of the industry without conflict.

The NAB trade show takes place in Las Vegas, Nevada from April 16^th & 19^th in the Las Vegas convention center. Anyone that would like to attend this year can do so for free by visiting the NAB website at www.nabshow.com/VIP, enter your profile, select ‘Exhibits Only’ information, and enter the VIP PASS CODE: KB1286. Please visit our booth in the South Hall lower level; Booth No. SL9908.

With the growing competition between Blu-ray and HD DVD, LG has launched the very first high definition disc player called “Super Multi Blue” (BH-100 as its model name) that is compatible with both Blu-ray and HD DVD in early January at the consumer Electronics Show(CES) held in Las Vegas to seize the fire. But don’t go wave the white flag in the format war just yet. Videophiles find the player’s flaws that stop it from being just perfect.

This winner of a Best of CES award was certainly one big catch of the eye at the show event. As the rep demonstrate discs labeled with both Blu-ray and HD DVD watermark playing in the same set top box, throngs of press and exhibition goers gathered in front of LG’s booth to watch the impressive moments. As Dr. Hee Grook Lee, president and chief technology officer of LG Electronics, explained, “the Super Multi Blue Player was developed to end the confusion caused by the current competition between Blu-ray Disc and HD DVD. Customers are no longer forced to choose between the two formats.” However, video gamers and TV fans might have different opinions.

Based on the recent review by TV fans, the Super Multi Blue Player doesn’t support interactive menus and some of the special video features like a HD DVD player do. The visual quality is good, according to the review writer, but not beyond expectation. With the retail price at $1,199, this player actually cost more than two cheaper Blu-Ray or HD DVD players. So unless you are strongly motivated to have one disc player instead of two, fans suggest waiting for more peace keepers in the HD format war to come.

Trade shows are a major focus for companies to showcase their products and attract new business. Recently, we exhibited at the CeBIT trade show in Hannover, Germany March 15 through 21, 2007. For those not familiar with this show, it is one of the largest electronics trade shows in the world with easily 500,000 ~ 750,000 visitors in a massive convention center covering over 26 separate halls. One could easily go into electronics overload at a show like this. CeBIT covers every possible electronic instrument from circuit boards to cars and yes, of course duplication equipment and blank media. We had a 25m³ booth with 4 members of our staff working at the show, including yours truly.

Most trade shows are only 4 days long, but due to the enormous size of this show, it is stretched over 7 days. This is a long haul to work at a trade show for 7 straight days and considering the distance we had to travel to get there (over 6,000 miles) it’s not so easy to just substitute employees and take a day off. Even though it can be draining, it’s a very rewarding show. It allows us to meet with most of our international distributors from all over the globe in one location. This is tremendously beneficial as to visit each one at their locations would not only be very expensive, but also far more time consuming than 7 days. Plus, with a minimum of 8 hours time difference between our corporate office and our closest European distributor, most business is conducted through emails. Often when I get into the office, most of our international distributors are preparing to go home or have long left the office.

In addition to being able to meet face to face with our international channel, attending this show gives us a much better insight into the international market and what their needs and habits are which may differ completely from our North American customer base. It’s amazing how different the culture can be from nation to nation. Buying habits, economies, technology level, environmental requirements, duties/taxes, and so much more can differentiate not just between the USA and the rest of the world but between even neighboring countries. How you would sell something in Germany may be completely different in France and visiting with these customers from around the world as they ask questions gives us an incredible insight into their psyche and buying habits.

In my next entry I’ll discuss more about what I saw and experienced at the show, but for now know that it was an incredible experience and even though it’s the 3^rd time I’ve participated, each year I learn something new and gain a better perspective on how we can improve and grow as a company.

Welcome to my blog. To begin, I have to admit this is my first blog so I’m a bit of a novice in this arena. I decided to create this blog to chronicle my experiences in the duplication field and how the company I work for, Vinpower Digital, is navigating the sea of technology and competition in the optical drive duplication market. It’s only fair to make the disclaimer that I am not an engineer or technician, but in marketing and sales. Even though I have a strong grasp of the duplicator field and capabilities, I may not always be able to explain how or why a duplicator can or cannot do something. Working at a manufacturing company, I’m surrounded by engineers and techie people, so I can’t help but pick up some of it. Even that bit of knowledge I can only use to educate others as to the functionality and performance of our duplicators.

My intention with this blog is to hopefully enlighten those looking to gain more information about duplication products as well as showcase some of the trade show and events I participate in throughout the year. I hope everyone will enjoy and become enlightened by my contributions and I look forward to getting any related feedback