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Vinyl is back. While I might not be able to get every release I want on vinyl, I will be able to get some from most every record label. Why am I happy? My daughter bought an iPod Touch the other day. Now, the wireless network is down in my house, and I don’t know why. It will likely take hours and several phone calls to figure it out. For what? So she can listen to compressed MP3 files? If that’s not bad enough, she’ll have to go on the computer (when it’s finally working again), to find out information on the songs--that is, if she can find the info at all.

Gail Marowitz, who was nominated for a Grammy this year for her art work on Aimee Mann’s @#%&! Smilers (SuperEgo Records) shared with me a recent experience she had. "I was on myspace.com looking at the page of an artist I like. That artist recommended another artist; I went to that artist’s page listened to three songs, liked them, and downloaded them. There’s a duet with a guy … don’t know who he is … no liner notes … no PDF booklet on iTunes. It became a frustrating experience because I liked the music and I couldn’t do what I did my whole childhood which was put a record on a turntable, open the gatefold [or flip to the liner notes side of the sleeve], and read about everyone who played on the album. I couldn’t get the lyrics either. It’s like driving blind. Since I was so interested in the artist, I found the experience frustrating."

I tried to get someone from iTunes to talk to me about this subject, but they said they had no one who could go on record. So, where am I leading with this latest round of MP3-bashing? It’s not that I don’t enjoy the convenience of MP3, but often I want more! I want a choice! Obviously, I’m not alone. According to Billboard, in 2008 there was a record number of vinyl albums sold, with nearly 1.9 million--more than any other year since Nielsen SoundScan began tracking data in 1991. The top-selling vinyl set of 2008 was Radiohead's In Rainbows, with 26,000, but Lil Wayne’s Tha Carter III and Coldplay’s Viva La Vida did pretty well too.

Why is vinyl making this unexpected comeback? Admittedly, it can never truly compete with MP3s in a generation born into the portable age, but at least, with the record labels all committing to releasing at least some titles on vinyl, the long-adored physical format is no longer a retro-fad, but rather a formidable niche. Of course, many audiophiles never gave up on vinyl. (There is another group of audiophiles that are looking at high-definition as the future, but that’s another story, as I discussed last month). I’ve sat through many Audio Engineering Show (AES) panels where hatred of not only MP3s, but all things digital, was everywhere. So my true question is, who wants vinyl? Can it just be the audiophiles?

I spoke with Steve Sheldon, president, Rainbo Records, who has been in the media manufacturing business for many years. While Rainbo manufactures CDs, they never stopped pressing vinyl. He says, there is way more to the story than audiophiles. That market never went away, and there has always been the nostalgia market as well: those consumers who have been buying new records and replacements for the LPs they already had. However, real growth in vinyl has been with those aged 18-24 who are buying this "new thing" called the record. "They do play the albums, but I don’t think sound is a big part of why they are buying them. The people I talk to, play the album once, then upload it to their portable players. They like owning and handling the cover," he said.

The growing vinyl business, however, does not mean it is really an opportunity for newcomers wanting to press product. There are nine record pressing plants left. Rainbo is one of the largest along with United Record Pressing. Generally, capacity at those nine plants is enough to handle demand, he said. "Last year was tough. We were running about a 10–week backlog, but that was, in part, because all of the labels jumped on the bandwagon at the same time. That seems to have evened out and I think all of us are now able to keep up with demand as companies reasonably space out releases." Another reason for the backlog this past summer had to do with raw materials shortages. There are only two suppliers of vinyl and they hadn’t ramped up for the surprise demand at that point.

Back in May and June, Sheldon says Rainbo was getting 20 different releases at once from one customer. "Also, at that time, customers were overanxious and probably overpressing as well. Many of the order sizes were up in the 20 or 30,000 piece range. Now, a lot of customers are in the 1-5000 units range. However, it’s not only about limited editions, he says, there are quite a few re-orders.

Despite the steadying growth, unavailability of manufacturing equipment is one deterrent in getting into the vinyl manufacturing business today. Sheldon says Rainbo’s newest press is 32 years old! "We haven’t been able to buy parts since the 1980s. We’ve been making our own parts. If it’s not a part that we can make, then we change it around. It would be expensive to develop a machine. Although the record business is good, I don’t think it would be good enough…it’s not like a company is going to build 1000 presses and then sell them all." Even if you managed to get a press, there is the learning curve, in terms of making the disc. It’s not an exact science like manufacturing a CD or a DVD. It’s more of "craft," he says. Rainbo has trained new workers, but there are people at the plant that have making albums for the last 25 years, Sheldon says.

What is the real issue here? It comes down to choice. David Sidebottom, mobile and music specialist at Futuresource Consulting, told me recently, "It's all about treating every release individually to maximize impact and sales potential, and to satisfy the fan base." When you look at studies from companies like Gartner Consulting who says CD production should stop now! It’s unnerving. Not all consumers are created equal. We all have likes and dislikes and those likes and dislikes change depending on situations. Instead of squelching any format, it’s beneficial to all to see how the formats can work together. Vinyl was killed long before consumers were ready for it to go.

Sheldon shared a story. He said that in the heyday of CDs, people were always amazed that he was still manufacturing vinyl. Now the tables have turned, so to speak. "I recently went to a party and someone asked…what do you do for a living? I said, ‘I make vinyl and CDs.’ His response was…’you still make CDs? I haven’t bought a CD in years!’"

Debbie Galante Block (debgalante at aol.com) is a freelance writer based in Mahopac, N.Y.

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The Authoritative Blu-ray Disc (BD) FAQ: Updates

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Digital Entertainment Companies in China to Support Dolby High-Definition Audio Technologies for Blu-ray Disc Format

Dolby Laboratories, Inc. (NYSE: DLB), announced today that it is enabling and supporting consumer electronics makers in China to develop Blu-ray Disc™ products. Three digital entertainment companies in China—TCL Technoly Electronics (Huizhou) Co., Limited (TCL), MIT Technology Co., Limited (MIT Technology), and Lite-On IT Corporation (Lite-On IT)—have agreed to license Dolby® TrueHD, a lossless compression technology, and Dolby Digital Plus, which delivers up to 7.1 channels of surround sound for future Blu-ray Disc products.

The world’s leading studios and content creators have embraced Dolby TrueHD and Dolby Digital Plus to enhance the experience delivered from Blu-ray Discs. Nearly 70 home audio systems and 50 Blu-ray Disc players from 30 companies around the world use Dolby TrueHD, Dolby Digital Plus, or both. Today’s announcement demonstrates Dolby’s continuing commitment to help expand the market for high-definition entertainment and support the efforts of digital entertainment companies in China.

"China is, strategically, a very important market for Dolby, and we are pleased to be working closely with key customers like TCL, MIT Technology, and Lite-On IT," said Mahesh Sundaram, Vice President, Asia Pacific, Dolby Laboratories. "We are committed to partnering with our customers in China to promote their products incorporating Dolby technology and to help them grow the industry by delivering the best high-definition experiences to consumers around the world."

"We are very excited to be one of the first companies in China to partner with Dolby and license Dolby’s flagship technologies in Blu-ray Disc production," said Song Yonghong, Standing Deputy General Manager of TCL. "Dolby has partnered with us since 2000, and has not only provided cutting-edge technology, but also strong local engineering and testing support to help us develop the products."

"With Dolby’s strong brand recognition and advanced technology, we are able to more easily touch the hearts of our customers worldwide with our products," said Minamikawa Hiroyuki, Managing Director, MIT Technology Co., Limited.

"We are proud to provide the best entertainment experience to consumers by using Dolby’s technology," said Ted Mao, Manager of Product Strategy and Planning Division, Lite-On IT Corporation.

In addition to partnering with Chinese manufacturers, Dolby is also working to raise the awareness of high-definition sound among consumers and working closely with content providers and distributors to support the development of the high-definition industry in China.

About Dolby Laboratories
Dolby Laboratories (NYSE: DLB) is the global leader in technologies that are essential elements in the best entertainment experiences. Founded in 1965 and best known for high-quality audio and surround sound, Dolby creates innovations that enrich entertainment at the movies, at home, or on the go. Visit www.dolby.com for more information.

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1000th Blu-ray Disc Released

Pinocchio, the Platinum Edition (Walt Disney Studios Home Entertainment) became the 1000th Blu-ray title to be launched in the UK, according to figures released by the British Video Association today from data supplied by Muze Europe Limited. The landmark demonstrates that despite tough times for the economy, content distributors in Britain are more committed than ever to high definition home entertainment.

The wide selection of Blu-ray discs currently available includes family titles such as Happy Feet (Warner Home Video) to all time classic films like Brief Encounter (ITV Global Entertainment) to indie titles like Kidulthood (Revolver Entertainment), to classic chick flicks including 27 Dresses (20th Century Fox Home Entertainment) to thrilling action titles like Mission Impossible (Paramount Home Entertainment), to music releases like Queen: Rock Montreal/Live Aid (Eagle Rock Entertainment) where it really feels like Freddie is rocking your living room!

Films were first released on the Blu-ray format in October 2006 by Sony Pictures Home Entertainment. They included the Exorcism of Emily Rose, Hostel, S.W.A.T. and Tears Of The Sun, reflecting the tastes of early adopters of new technology. Last year’s best selling Blu-ray title was Warner’s The Dark Knight, which became the best-selling Blu-ray title in history, selling more copies on Blu-ray in its first full week in the shops than any other movie ever released on the format. It now has sold over 350,000 copies and remains top of the Blu-ray charts.

DVD, which celebrated its 10th anniversary last year, took almost two years for the 1000th title release to be released which, according to Muze Europe, was Sly And Robbie – Superthruster (Palm Pictures).

Hannah Conduct, Marketing Manager for the British Video Association said, "This highly significant milestone not only reflects the confidence of our members in the technology but is also an indication of the public’s interest in purchasing top quality home entertainment. We expect to see sales going from strength to strength in 2009, on the back of strong releases such as Quantum of Solace, Slumdog Millionnaire and other recent box office successes."

Blu-ray discs are currently up on a 52 week rolling basis by 325% and sales are forecast to rise from 3.7 million in 2008 to over 13 million this year, according to analysts Screen Digest. Hardware sales of stand-alone Blu-ray disc players reached almost 300,000 by the end of last year and are expected to hit one million in 2009 whilst PS3 has sold almost 2 million and experts suggest this figure may rise by an additional 800,000 in 2009.

Blu-ray Partners UK members include:
*Current Industry backers:
Studios/Distributors: Disney, 20th Century Fox Home Entertainment, Paramount, Sony Pictures, Universal, Warner Bros
Hardware manufacturers: LG, Panasonic, Pioneer, Samsung, Sharp, Sony

UK official Blu-ray website : http://www.blurayrevolution.co.uk/

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Application of ISO “Test method for the estimation of archival lifetime of optical media” to Begin!

CDs21 Solutions (Chairman: Dr. Heitaro Nakajima, Office Location: Chiyoda-ku, Tokyo, Japan), an
organization promoting optical media, has been preparing for an application of the "Test method for the
estimation of archival lifetime of optical media" after it was officially approved as an international
standard at ISO (International Organization for Standardization)/IEC (International Electro technical
Commission) in January of 2008. As a result, Archive Disc Test Center, a Non Profit Organization (ADTC,
Managing Director: Takao Ihashi, Office Location: Chiyoda-ku, Tokyo, Japan) was formed in August, 2008,
and Center Laboratory (Location: Matsudo-shi, Chiba, Japan) will start its official operation from April,
2009.

Optical media, such as CD-R and DVD-R, are seeing growth in demand, with their ability to store
various text based data, still images from digital still cameras, and video images from digital television.
However, there has always been concern about secure storage of data, due to proliferation of media
that are not up to the standards and with premature life, and without specific references or correct
information on life expectancy. Furthermore, with official document storage and report documentation
migrating to electronic data in public offices, we have been receiving reports about troubles of not being
able to read stored data, and there have been concerns over reliability on a global basis.

In order to address this concern, CDs21 Solutions, through collaboration with OSTA (Optical Storage
Technology Association), a U.S. based optical storage promotion entity, and with cooperation from Dr.
Mitsuru Irie of Osaka Sangyo University, has been working on the creation of universal test method for
the estimation of lifetime of optical media, and on January 13th of last year, ISO/IEC has approved it as
official international standard with ISO/IEC 10995 designation. Following this process, ADTC, a NPO
entity, was formed as a part of the preparation to apply the test method, to create operation guidelines
and to install equipment at the facilities, where test operations were conducted in March, 2009, and the
actual "Test for estimation of lifetime of optical media" will start in April, 2009.

With the launch of this operation, use of certification mark (please refer to the attached image) will
be granted for optical media that are tested and are found to satisfy specified conditions (lifetime
expectancy of at least 30 years), and the marks can be printed on product packages, etc. The consumers
can now expect to be free from troubles associated with media lifetime by making the purchase of
products with the certification mark as a reference. Moreover, we anticipate applications towards
original master storage of various data and images, and for institutional storage of official public
documents, allowing the consumers to make use of optical media with confidence. We estimate that the
products which will go through the testing process and will be found to satisfy the specified conditions
to become available in the market from this May onward.

Sample Design of Certification Logo
CDs21 Solutions is asking other associations and organizations for their cooperation on this
"Activity regarding estimation of lifetime of optical media", and we are hoping that the optical media
industry as a whole will address this issue, so that the problems associated with lifetime expectancy is
resolved.

Following is the outline of the ADTC, a NPO entity:
- Name of Organization: Non-Profit Organization Entity - Archive Disc Test Center
- Corporate Number: 0195-05-013247 (filed with Tokyo Metropolitan Government)
- Administrative Office Location: Kanda Jimbo-cho, Chiyoda-ku, Tokyo, Japan
- Test Center (Center Laboratory) Location: Kogane Kamifusa-machi, Matsudo-shi, Chiba, Japan
- Date of Incorporation: August 26th, 2008
- Main Equipment at Center Laboratory
o Environmental Test Chambers, Error Rate Detectors, etc.
- Organization: Management Group, Administration Group, Account Team, Center Laboratory
(Test Center)
- Managing Director: Takao Ihashi (CDs21 Solutions – Chairman of Board of Directors)
Please also refer to the home page (URL address: n-adtc.org, Scheduled to become available after
March 25th)
Remarks: As of January, 2009, the standard for the testing only covers 120mm and 80mm DVD+R and
-R. For products which satisfy specified conditions in the tests, they will be permitted use of the
certification mark as demonstration of having passed the lifetime estimation test based on ISO/IEC
10995 standard.

【CDs21 Solutions】
CDs21 Solutions is a voluntary organization, established as a collaboration of former MultiMedia CD
Consortium and Orange Forum, and it is an interdisciplinary organization consisting of members from
various optical disc related industries. It has been engaging in improving compatibility of applied
products complying to various optical disc standards, which include hardware, media, software, and
contents creation, and has also been promoting related services, in order to contribute to the industry
as well as to the end users.

There are currently about 40 participating members from both in and out of Japan, mainly consisting
of manufacturers of optical discs and drives.

CDs21 Solutions Homepage: http://www.cds21solutions.org/

【OSTA】Optical Storage Technology Association, California, U.S.A.
OSTA is an international organization whose purpose is the promotion of recordable optical media for
storage of computer data and image contents. The number of members and associate count over 40,
which span across North America, Asia and Europe.

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The NPD Group: Continued CD Sales Declines in 2008, but Music Listening and Digital Downloads Increase

According to The NPD Group, the leader in market research for the entertainment industry, the number of Internet users paying for digital music increased by just over 8 million in 2008 to 36 million Internet users. Purchases of online digital music downloads increased by 29 percent since last year; they now account for 33 percent of all music tracks purchased in the U.S. NPD’s Digital Music Study, an annual tracking study covering the music industry, also revealed that there were nearly 17 million fewer CD buyers in 2008 compared to the prior year.

The decline in CD buyers cuts across all demographic groups, but was particularly focused on teens and consumers age 50 and older. "Rising incidence of paid downloads is a positive development for the industry, but not all lost CD buyers are turning to digital music," said Russ Crupnick, entertainment industry analyst for The NPD Group.

NPD also reported that there were 13 million fewer music buyers in the U.S. last year, compared to the prior year. The decline in music purchasing was led by a 19 percent drop in CD sales. Only 58 percent of Internet users reported purchasing CDs or digital music downloads last year, versus 65 percent in 2007.

Consumers’ primary reason for not purchasing CDs was that they were spending less on entertainment overall, because of the recession. Consumers were also concerned about the price of CDs, and expressed satisfaction with the collection of titles they already own. Among the reasons consumers cited for preferring digital music over CDs was that they could choose only the songs they wanted to purchase, and could immediately download and listen to their purchases.

According to NPD, there is evidence that music listening is increasing. For example awareness and usage of Pandora, a leading online radio station, doubled year over year to 18 percent of Internet users; one-third of those who were aware of Pandora report using the service. Similarly, the percentage of consumers claiming to listen to music on social networks climbed from 15 percent in the fourth quarter (Q4) of 2007 to 19 percent in Q4 2008. Nearly half of U.S. teens are engaging with music on social networks, which is an increase from 37 percent a year ago; among college-age Internet users, the percentage increased from 30 percent in 2007 to 41 percent in 2008.

"The trends we’re seeing in our consumer tracking studies are evidence of the continued transformation of the music industry," said Crupnick. "Just as music piracy and the advent of digital music ended the primacy of the CD, we are beginning to see new forms of listening challenge the practice of paying for music. The music industry now has to redouble efforts to intercept and engage these listeners, so they can create revenue through upselling music, videos, concert tickets, and related merchandise."

Data note: Information in this press release was derived from the annual NPD Digital Music Study surveys of U.S. consumers. Data was based on a sample of more than 4,000 consumers, and results were balanced to reflect the U.S. Internet population (age 13 and older). Pandora trends source from NPD’s Quarterly Digital Music Monitor.

About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,600 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com/.

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Sofatronic Successfully Concludes Second Round of Financing

sofatronic, a globally leading technology provider for the development of interactive Blu-ray and New TV applications, has successfully concluded a second round of financing. The venture capital enterprise Neuhaus Partners invests together with KfW’s ERP Startfonds several million euros in sofatronic GmbH. Neuhaus Partners already invested in the first round.

sofatronic is planning to use the additional capital mainly for product development and internationalization. Matthias Grychta, Managing Partner at Neuhaus Partners: "With its Kaleidoscope Technology, sofatronic made a breakthrough in Hollywood, proving that the best technology will prevail.

All Blu-ray titles developed with software from sofatronic were, and are, top-sellers, setting benchmarks in Blu-ray development. The cooperation with major movie studios and production houses in Hollywood is taking place at the top level, and in 2009, numerous groundbreaking new Blu-ray releases that are being developed using sofatronic's technology will add to the market."

René Baisch, founder and CEO of sofatronic, says: "The capital increase confirms our company's success and allows us to focus on internationalization and an expansion of the technology to include more platforms. As pioneers in technology, we will focus in particular on promoting the connection between TV and the Internet."

Kaleidoscope Technology is the globally leading product for the development of complex applications for Blu-ray as well as new interactive TV formats such as tru2way. The software makes it possible to implement client as well as server solutions easily and individually – no programming is necessary.

New applications provide the movie and TV industry with new services and sources of income. Blockbuster Blu-ray titles such as "Iron Man" or "The Incredible Hulk", among others, were realized using sofatronic technology.

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DTG to launch UK's first 3DTV Consultation

The DTG it is to conduct the UK's first industry consultation into three-dimensional TV (3DTV).

The consultation, which will open later this month, will ask the DTG membership of over 125 digital television broadcasters, platform operators, manufacturers and other stakeholders for their views on the technological feasibility and viability of 3DTV, and for their views on key interoperability issues.

Commenting on the consultation, DTG Director General Richard Lindsay-Davies said: "The DTG has been at the heart of every development in digital television since its inception more than a decade ago. Our early work in the largely nascent area of 3DTV is a further example of our ability to help frame the debate on an emerging technology and provide a forum for all the key industry players.

"Some industry observers regard 3DTV as a natural, evolutionary next step for high-definition television (HDTV). However, numerous challenges exist across the value chain, from image acquisition, storage and post-production, to distribution, reception and display. These challenges need to be understood and overcome in order to make 3DTV a feasible and viable consumer proposition."

The DTG's 3DTV consultation will be conducted in conjunction with independent media consultant Lovelace Consulting.

www.dtg.org.uk

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LiveDigitalCopy Available at CDA

As of now CDA Datenträger Albrechts GmbH provides their DVD-Video customers the opportunity to apply "Live-Digital-Copy" onto DVDs. This enables the end users to view movies without a DVD on mobile devices like cellular phone, iPod or PlayStation Portable.

With the LiveDigitalCopy™ (LDC) software it is possible to transcode the feature film or specific parts of the DVD into an other digital format - while controlling the usage rights and preventing unauthorized duplication. The rights owner can define how many digital copies are granted to the user and which output devices are allowed. The devices can be - for example PCs, portable video player, cellular phones or game consoles.

The dynamic "Live-Digital-Copy" feature works also with standard CSS-protected DVDs. LiveDigitalCopy™ does not require any changes on the original master and can be applied to every regular DVD-Video. Furthermore the software supports multiple audio languages and subtitles.

LiveDigitalCopy™ has been developed by the copy protection specialist Protect Software GmbH with whom CDA has a long-term cooperation in copy protection mechanisms.

www.cda.de

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