On demand retail is set to explode in the UK over the next year according to a report by Screen Digest. It suggests that the DVD side of the industry will be worth $1 billion alone by the end of 2012.
The report comes out just months after On Demand opened its first concession in Border’s Oxford Street store, while Tribeka COO Stephen Precious stated that the firm is aiming to have the increase number of stores operating its SoftWide technology into double figures before the end of this year.
"At the end of the year we’re hoping to have installations reaching into double-digits in the UK and Europe." And it’s looking increasingly likely that it will succeed with Precious telling PC Retail that it is currently in negotiations with some of the biggest names in UK and European retail, with some expected to be rolled out before the end of summer.
"The publishers have always seen the idea as an excellent one. The system also has huge benefits for publishers and distributors," adds Precious.
"They also go beyond simple costs. Distributors and publishers can use the system to prevent over production and stock issues and their associated costs such as insurance and distribution.
It was a point echoed by author of the report, Marie Bloomfield: "Screen Digest expects the manufacturing-on-demand business to be dominated by long tail content in the short-to-medium term, offering a distribution channel to rights holders that would struggle to get their titles on store shelves in the traditional supply chain."
Indeed, Tribeka’s head of DRM Mark Furtado revealed to PC Retail that the company is set to enter the DVD market before the end of the summer.
However, widespread rollout of the technology still faces some barriers, as Bloomfield explained: "Cost is a potential obstacle for in-store MOD solutions, as rolling out the technology across every store would require a significant capital investment.