DVD maker bought as industry spins into boom times.Looking to boost its capacity to replicate CDs and DVDs, privately held Crest National has acquired Anaheim-based Concord Disc Manufacturing Corp. Terms of the deal weren't disclosed. Concord, which replicates CDs and DVDs, prints labels and makes packaging for discs, has a sizeable plant in Anaheim and that was a big factor in the decision to buy. The Concord buy "immediately doubles the size of our DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. and CD replication Manufacturing CDs and CD-ROMs by stamping blank plastic discs from a metal die that contains the predefined pit pattern (binary pattern). Contrast with CD duplication. operation, nearly quadruples our automated packaging capabilities, and it enables us to greatly expand our hand-packaging services," said Ron Stein, Crest National president. "Additionally, it provides sufficient space to bring distribution and fulfillment turnkey services in-house." Crest National was founded 42 years ago and has five facilities in Hollywood, including a motion picture film lab, a digital video post production operation, two DVD design and encoding See encode. studios and a DVD and CD replicating plant. Concord started in the 1980s as a maker of computer floppy diskettes. By 1998, the company was making CDs. A few years later, Concord started replicating DVDs. The disc replication industry could see its share of challenges in the coming years. Among the biggest concerns: obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. . In three to five years, DVD buyers could be downloading movies via cable, satellite or other service providers--just as they do today with music downloads A music download refers to the transferring of a music file from an Internet-facing computer or website to a user's local computer. This term encompasses both legal downloads and downloads of copyright material without permission or payment if required. over the Internet. This was a concern for Steve Arthur, an analyst at RBC Capital Markets RBC Capital Markets is the corporate and investment banking division of Royal Bank of Canada ("RBC"). Broker dealers Depending on the jurisdiction, the division uses different broker dealer subsidiaries of RBC:
He advised investors to not be long-term shareholders of Cinram, which closed a 300-worker, 218,000-square-foot compact disc replication plant in the same Anaheim industrial park in 2001. Crest executives dispute projections of a meltdown meltdown Occurrence in which a huge amount of thermal energy and radiation is released as a result of an uncontrolled chain reaction in a nuclear power reactor. The chain reaction that occurs in the reactor's core must be carefully regulated by control rods, which absorb . "As far as online competition goes, there's been real issues with bandwidth," said John Walker, Crest's vice president of sales and marketing. "We don't see it being a big impact in the foreseeable future. People want to own DVDs and hold the packaging." Price erosion in the DVD market has put pressure on Concord and other disc makers in recent years, forcing consolidation in the industry. |
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