The Content Delivery & Storage Association, is the worldwide forum on trends and innovation for the delivery and storage of entertainment, software and information.


Russomanno Named CDSA Board Chairman

Frank Russomanno Photo
Frank P. Russomanno, president, chief  executive officer of Imation, has been elected board chairman of CDSA,  following the recent resignation of Brian Wilson of Cinram from the  position.  "On behalf of the entire  board of directors, I thank Brian Wilson, Dave Rubenstein and Cinram for their many invaluable contributions to our association over the years. I look  forward to Cinram’s continued guidance and support as their trade association  transitions to the broader content delivery and storage industry.  I also look forward to working with Frank Russomanno as the association continues to focus on the need to extend our reach and  diversify our businesses on behalf of our membership of content delivery and  storage companies," said Charles Van Horn, CDSA President.

Frank is president & CEO of Imation  where he provides leadership for the company's data storage businesses, which  includes its personal storage media business of optical storage solutions such  as CD and DVD technologies. His leadership also extends to Imation’s data  storage media and services business, which concentrates on removable magnetic  media such as tape technology.  During  his tenure with Imation and The 3M Company, Frank has held several executive and managerial  positions, including vice president of Imation Data Storage Media and Services,  general manager of Imation Advanced Imaging Program, corporate sales and  marketing director, and global sales and marketing director for Photo Color  Products. He served as a European business unit director while with The 3M Company.  He began his career with The 3M Company in 1973 as a sales coordinator and became a  sales representative for the magnetic/audio/video recording business in the  greater metropolitan New York  area.

CDSA will formally welcome Frank to his position of leadership within the CDSA organization with an interview in the next edition of this newsletter.

CDSA Membership Research Results Announced

As the content delivery and storage industry moves forward to explore new opportunities and embrace an expanded membership and mission, executive management felt it was essential to take stock of the opinions and attitudes of its membership, plus, receive valuable feedback on "next steps" and "new directions."

As announced in last month’s issue of this newsletter, The CDSA opened the conversation in August on issues and business challenges of every CDSA member, through a monthly series of short surveys.

Overall findings support the association's transition plan, accepting and applauding the broadened vision that recording media and storage in the future will involve an ever-widening array of delivery services and media technologies. The data and write-in answers are telling The CDSA that members prefer a methodical transition plan that also supports and expands upon their current businesses.

When asked to rate leading industry issues as to how important they are to your company, 92% rated the future of physical media as their most important issue. Close behind was the issue of next-gen DVD formats with 90% rating it extremely or very important. Other issues in their order of importance to the members fell in line this way:

(3) Timetable for transition from physical to digital media
(4) HD transition
(5) Digital downloads
(6) Too many competitive formats/platforms
(7) Environmental issues

Member responses tell us, although there is clear interest in understanding the role that digital delivery will play in our businesses, the immediate future of our core products and services -- physical media, remains of paramount interest and concern.

When asked to rate the importance their company plans place on the following business strategies over the next five years, 80% of members rated managing the bottom line as their top pick. The strategy of adding new physical media products and services was the second highest with a score of 69% for extremely important and very important. The rest of the strategies all scored at 50% or higher with the members in this order:
(3) Diversifying beyond entertainment
(4) Diversifying supply chain services
(5) Increasing/adding digital media services

Clearly, The CDSA membership of senior executives is a group of keen business managers who understand that they must carefully watch their costs while they reinvent and diversify their businesses. Because adding new physical media and services far outweighs a move toward digital media delivery services, member businesses are making the point that businesses must not only expand their current service offerings but also must explore the need for physical media beyond their core customer base of Hollywood.

When asked what services the member most values and feels best serves their business needs, 78% put increasing market intelligence services as the front runner, with a close count of 76% saying advocating the value of physical media is a high value service. The other services finish out the lineup of services in this order of importance:
(3) Enhancing regular association communications with members
(4) Increasing number of networking opportunities
(5) Adding new members from diverse markets
(6) Increasing relationships with content holders

The way members scored this question tells The CDSA that members are eagerly looking for more data to help them run their businesses and forecast their futures, which is a clear sign of an industry in transition. At the same time members expect The CDSA to advocate the value of physical media on their behalf-- especially at a time when the news media is falling in love with the newest digital forms of content delivery.

When asked to rate our industry's most "competitive threat?" 80% of the membership put continued price erosion as their threat. Other threats registered concern at 50 to 60% rating and remained in the back of the pack when it comes to the strong, high score of price erosion. Those threats include the following:
(2) Digital downloads
(3) Piracy
(4) Video-on-demand

Member responses tell us we remain our own worst enemy by reacting to increased marketplace pressures by reducing pricing. Continued price erosion far out paced all other "threats," though, interestingly, the new technologies for digital delivery are now viewed as bigger challengers to the core physical media business than our traditional enemy "piracy."

What have we learned, just from the immediate and strong participation in the survey? It tells The CDSA while we must educate our membership about new channels of digital delivery, our primary focus must be to advance and prolong the lifecycle of the physical media business for ourselves and our customers as long as possible (incidentally, physical media does not only include optical media, we were advised in many survey comments.) Our membership looks to The CDSA for information that will help them plan and forecast and manage their businesses through a time of dynamic change. Likewise, they are looking for leadership to find new markets and new opportunities for our current business services and products.

The membership is saying, embrace change and new opportunities, but clearly do not abandon our day-to-day business needs in the process.

Thanks to all members for responding so vigorously to this first survey questionnaire.

CDSA Launches Data Media & Storage Council

The CDSA Board Chairman and Imation Corporation President & CEO, Frank Russomanno, has agreed to chair a new committee at The CDSA called the Data Media & Storage Council (DMSC). This council will bring together the Data Media Statistical Committee, chaired by Patricia Byrne, national sales manager, Maxwell Corporation America and new member companies in the storage community to discuss ways the association can address the storage industry beyond the statistical analysis of market share.

The first meeting of the DMSC will take place in New York City at the Friars' Club on Tuesday, October 30, Noon to 3 p.m. to discuss an action plan for the council as well as future initiatives by the association to increase its position in the storage industry with respect to hardware, data media and emerging storage technologies.

Tom Coughlin, Coughlin Associates, a market intelligence firm reporting on the storage industry, agreed to make a brief presentation on "Trends in Removable versus Embedded Media." Tom has also expressed a willingness to cooperate with The CDSA in encouraging his contacts to join The CDSA in return for our sponsorship of his storage conferences. As such, The CDSA and Mediaware Magazine have been named association and media sponsors of Coughlin's popular Storage Visions 2008 Conference, which will be held January 5 & 6, 2008 at the Flamingo Hotel in Las Vegas, just before the 2008 CES. The Storage Visions Conference is produced by the Entertainment Storage Alliance (www.entertainmentstorage.org) and is a partner event to the International CES.

Content Holders Endorse CDSA Anti-Piracy Post Production Standards

Comprehensive anti-piracy and security standards have been developed for post-production - digital media services facilities in response to concerns of content owners and editing laboratories about unauthorized access and theft of video and audio content during the pre-release post production of films and television shows. The development was spearheaded by a joint effort of Deluxe Digital Studios, Inc., a wholly owned division of Deluxe Entertainment Services Group, Inc., which operates media services facilities around the world, and The CDSA, which maintains a global anti-piracy compliance program.

The standards are part of the association's Anti-Piracy Compliance Program (APCP) that covers creative, manufacturing and distribution services along the content-to-market supply chain. An integral element of the APCP array of anti-piracy and security standards are periodic, independent audits that lead to a facility's certification.

According to Rob Seidel, executive vice president - general manager, Deluxe Digital Studios, "We know the value-added services we provide to our clients are now even more robust with the development of these anti-piracy and security standards and independent audits. We approached The CDSA and offered to work as a team to facilitate a substantial and standardized level of security for post-production and digital media services facilities around the world. The implementation of these standards is a strengthening mechanism for everyone involved in the post production process." The Deluxe Digital Services Burbank facility is the first site to beta test the standards, which will be implemented by the end of September 2007.

Richard W. Atkinson, vice president, Global Anti-Piracy Strategy & Operations, The Walt Disney Company, and a member of the The CDSA Board of Directors, hailed the development of the post-production standards as a major and necessary milestone. "While leaks from post production and replication facilities are not that common, when they do happen it is detrimental to the film, the studio, and the post facility. Films are very vulnerable when in the editing, authoring and mastering stages of development. As pre-released products, the market value for these films is extremely high and a lucrative target for pirates. Having a set of minimum standards and best practices across this space will be a great help. We salute Deluxe Digital Studios and The CDSA for taking a solid leadership position in this area and enhancing the battle against intellectual property theft."

New Anti-Piracy Ad to Run in Variety and Video Business 

As part of our efforts to promote the value of The CDSA-audited replicators to the content community, a new APCP advertisement has been designed to run in leading entertainment trade publications Variety and Video Business later this month. To download a copy of this ad for your reference, as well as for the most updated list of APCP approved replicators click here.

Save the Date: The CDSA Media Market Intelligence Summit, December 3-4, New York City

New York Marriott East Side, 525 Lexington Avenue, NY, NY
Reservation: 1-800-228-9290 or 1-212-755-4000
Ask for IRMA or The CDSA Summit room block for discounted rate of $499/night  

  • Executive Committee Meeting, 9:00 a.m. – 12:30 p.m., Monday, December 3, 2007
  • Board of Directors Luncheon and meeting, 12:30 p.m. through 4:00 p.m., Monday, December 3, 2007
  • Welcoming Reception – 5:30 p.m., Monday, December 3, 2007
  • Summit conference sessions – 8:30 a.m. through 4:00 p.m., Tuesday, December 4, 2007
  • Networking lunch for all registered attendees – 12:30 p.m., Tuesday, December 4, 2007

Charles Van Horn photoCharles Van Horn
IRMA/CDSA President
cvanhorn@contentdeliveryandstorage.org