Meet New Colonial Board Member Connie Commeau - Page 3 Physical World Issue: 2Q15 Annual Meeting: A Resounding Success The Takeaway—‘We make creative people’s dreams come true’ Colonial Purchasing Cooperative’s annual meeting in late March in Orlando, Florida, eschewed the typical conference program in favor of an open-ended exchange of ideas bandied about during an afternoon of rotating roundtable discussions. The result was declared a resounding success – “so much better than sitting listening to presentations,” comments Colonial executive director Bryan Ekus, relaying the positive feedback he received from the event’s 60 attendees and board of directors. Dubbed the “World Discovery Café,” the speed-dating style of hypothetical business topics universal to everyone’s own circumstances allowed participants to freely engage in conversations that reinforced the need to think out of the box. Colonial board members took the reins • Chinese multinational acquiring moderating the five tables. After a few hours, your company and plans to the moderators summarized for the entire discontinue physical media by group how members tackled their topics year’s end (Steve Sheldon) table by table, and they tacked up on the The takeaway: This topic generated a few wall the participants’ notes and outlines. ironic cheers in the audience during the Here’s what they came up with: summary. But aside from the nervous laughter came a realization that our • Achieving efficiencies in your business is built on certain skillsets (e.g., daily life (Frank Hartwig and Pat fulfillment, customer service, metallization Reagan) or plastic molding) easily applicable to The takeaway: Everyone should sometimes other businesses. take a break, which will result in such benefits as helping you to be smart with your time; organize better, and strike a balance that ultimately makes you more productive. • Overcoming over work and life things that really suck (Brian Axtman) The takeaway: Sure, taxes, government regulations and the weather you can’t control but some things you can improve, such as employee engagement, bad attitudes and drama in the workplace. The best way is to get past hard times is by making better decisions, resulting in tackling difficult people with a positive attitude. Platinum Sponsor • Convincing Apple why it should acquire your company, and separately convincing your daughter to take over the family business (so you can retire) rather than her use lottery winnings to launch a startup (Connie Comeau) The takeaway: Physical media manufacturers make creative people’s dreams come true. That kind of tugging on heartstrings is built on a history of innovation in introducing new products and services that fulfill market segment needs. In both scenarios, there’s proven value in owning such a business. Silver Sponsors • The best way to engage and motivate staff (Tony Van Veen) The takeaway: An engaged workforce is a motivated workforce, and the best way to accomplish both is to listen. Also, get to know your employees as human beings. The workers know their jobs better than you do, so don’t tell them what to do. Be transparent in terms of sharing KPIs and topline sales information. Also provide opportunities to give them a sense of ownership. Copper Sponsor P.2 Physical World Issue: 2Q15 80% Approval Rating for Orlando Meeting COLONIAL Responding to an online survey, Colonial members generally said they were very pleased INITIATIVES with the Orlando annual meeting. In fact, nearly 80% reported they thought the quality of the event was either “excellent” or “very good.” An additional 80% found the Discovery Café roundtable discussions (see lead story) either “extremely” or “very engaging.” Opinions were varied on co-locating the Colonial annual meeting with the plastics NPE Exhibition: 45.8% found it “somewhat worthwhile,” while 33.3% said “very worthwhile.” An even 8.3% chose “extremely worthwhile” and “not so worthwhile, while only 4.17% thought the coupling was “not at all worthwhile.” In regard to where next year’s annual meeting should be held, Los Angeles was the most popular destination (41.67%), followed by a return to Orlando (33.3%) and Chicago (20.8%). Co-locating again with a related industry convention appears to have met with approval. About 58% said they found “extremely” or “very interesting to have the Colonial meeting coincide with an event on 3D printing, slightly edging consumer electronics (57%) and custom packaging (52.4%). Orlando Golf Tournament May 11 Plastics Forecast Webinar Colonial Purchasing Cooperative is happy to announce its first webinar, sponsored by IHS Chemicals, on the changing dynamics of the petrochemical market. Paul Blanchard, IHS’s director of engineering for plastics, will discuss on Monday, May 11 at 9 a.m. (CST) the supply and demand of polypropylene and polystyrene. Look for an email in your in-box regarding log-in information. Buying Power Look out for a survey asking for your opinion regarding new material categories that Colonial is looking into using our collective buying power to procure better deals. Those under consideration include: • Bonding • Lacquer • Overwrap European Expansion Colonial’s European arm, which currently includes seven members, is getting help from the German organization Genossenschaftsverband (Cooperative Association), to create a new business entity for Colonial in Europe. By having a stronger footprint opens up new opportunities for all Colonial members. Colonial Elects Board of Managers WINNING GOLF TEAM: (l-r) Steve Sheldon, Ram Nomula, Pat Reagan, and Michael Hosp; and all the players. SAVE THE DATE At the annual meeting in Orlando, the organization elected the following board leaders: Pat Reagan Secretary/Tier 2 Designee Brian Axtman Treasurer/Tier 4 Designee Tony van Veen Tier 2 Designee •M ay 11 at 9a.m. (CST), Plastics Forecast Webinar Frank Hartwig Tier 1 Designee* •M ay 18, 2015, Hamburg, Germany – Colonial European Dinner and Networking Meeting Steve Sheldon Tier 3 Designee •M ay 19, 2015, Hamburg, Germany – MEDIA-TECH Conference, Mövenpick Hotel, www.media-tech.net for more information Michael Hosp European Representative Connie Comeau Board Member •O ctober 14-16, 2015, Los Angeles, Calif., Colonial West Coast Meeting * Previously held by Ray Zerrusen P.3 Physical World Issue: 2Q15 Meet New Colonial Board Member Connie Commeau ‘The bulk of our business comes from manufacturing CDs and DVDs’ Packaged media veteran Connie Commeau, chief operating officer of Colonial member ADS Group, was elected to the Colonial Purchasing Cooperative board of directors in March at the annual meeting. She talked with Physical World about her career, why she’s still bullish on the business, what’s driving growth at ADS, and the importance of Colonial helping our bottom lines. Connie says meeting General Colin Powell (Ret.) was a very proud moment in her career. “He’s an amazing man.” ADS Group’s Studio interviewed Powell exclusively for a promotional video the company created for Urban Ventures, a non-profit organization whose mission is to “end generational poverty in high-risk neighborhoods.” Also pictured: two of her favorite packages that ADS created for Prince and Sundance. PW: What makes you excited about going to work? CC: I know it sounds like a cliché but it’s the truth, it’s all about the people – whether it’s our team of employees, our clients, our vendors or our industry colleagues. I have a “service” mentality. I believe as a leader you need to serve others. It works both ways: you need to understand the obstacles, and you need keep the path clear so you can guide. That approach opens up new roads of opportunity. In order to best serve clients, you need to have an understanding of what is holding back your team. The best way to accomplish that is to: listen, listen and listen. I am an extrovert and I get my energy from people. In today’s world it can be a challenge to make a personal connection with others. We have all, myself included, become a daily slave to e-mail, text, and social media. Making personal connections with employees, vendors and customers is becoming a day-to-day challenge, which is very sad. So I have made the decision to have “no e-mail Fridays,” the day I leave open for human contact. I will interact with my team, vendors, industry colleagues, and customers only via telephone, face to face, or a hand-written “thank you note.” I will not succumb, solely to communicating through a screen. PW: How did you end up in packaged media? CC: A couple of my mentors said they ended up with me because they lost a bet. I started in the industry when I was 19 years old. I was looking for a job that would help pay for school. I was majoring in hotel restaurant management at Stout. I answered an ad and interviewed with Sunrise Packaging. At the time, Sunrise was a startup, they were moving their facility out of a pool shed and into a real manufacturing facility. I was looking for paycheck: $3.25 an hour. Working for a startup allowed me to understand and work in all aspects of the business. Thirty-plus years later I am still in the business. I have a passion for both sales and operations. I love this industry. CC: Sunrise Packaging. My mentor was Mark Hector, who would say that I was with Sunrise through my “teen” years, in which I received a lot of patience and guidance. It was a great company and a great experience. I was with Sunrise for 15 years. it’s a CD, DVD, BD, USB, SD, CD-R, DVD-R, SD, drop cards, vinyl records, serialized media, printed manuals, catalogs, direct mail pieces, or Web-based distribution – we can meet the need. Our growth will continue to come from all of those formats. Our Studio services – script to screen (DVD) – also continue to grow. But the bottom line is that the bulk of our business comes from the manufacturing of CDs and DVDs. I don’t foresee this going away any time soon. There still is growth to be had. PW: What are your favorite packages that ADS has produced? PW: What is driving the optical disc trend of serialization? CC: Too many favorites. You can take the girl out of plastics but you can’t take plastics out of the girl. CC: Traceability and security. PW: Where is growth coming from for ADS? CC: In our industry, a penny makes a difference. Purchasing as a group, allows us individually to increase volume but at the same time decrease price, positioning us strong with the supplier. Simply, it gives us negotiating power. PW: Where did you work before joining ADS 16 years ago? CC: We aren’t that special and faced with the same challenges as everybody else: how to handle diversity in a shrinking market. We provide the vehicle for the delivery of content, so whether PW: What kind of value does Colonial bring to a member company’s bottom line? P.4 Physical World Issue: 2Q15 Member News SABIC’s Lewis Wilson Retiring After working at SABIC Innovative Plastics for more than 36 years, Lewis Wilson, its key account leader in the southeast, is retiring. Prior to joining the plastics supplier in 1979, Wilson, who’s been based in Greensboro, NC, launched his career at another company, where he spent a year and a half as a sales manager. He then found a long time home at SABIC. On the occasion of his retirement, we all want to thank him for his many years of great support of Colonial Purchasing and send our very best wishes for a happy retirement! Pepsi Commercial, Video Shot at Rainbo Records’ Plant That’s Colonial member Rainbo Records’ vinyl factory that is the location for the Pepsi television commercial currently airing nationally. The spot starts out with a close-up of a record getting pressed. The camera pulls back to a party in full swing, including live band Fall Out Boy performing a new song that was also made into a full video. Check it out at https://www.youtube.com/watch?v=ShhVwRrbr_k Discmakers’ Vinyl Guide for Musicians Speaking of vinyl, Discmakers recently published a downloadable pdf, The Musician’s Guide to Vinyl: http://www.discmakers.com/pdf/Musicians-Guide-To-Vinyl.pdf P.5 Physical World Issue: 2Q15 Industry News Survey: AM-FM & CDs Still Rule in the Car Blu-ray Disc Association Approves 4K Standards A recent survey by Ipsos shows that in the car, Americans prefer radio to CDs or streaming services. The survey showed that in an in-car environment, 84% of Americans use AM/FM radio and 64% still use a CD player, keeping an average of 10.5 CDs in their vehicle. While consumers do seem averse to purchasing new CDs (68% say they have not purchased any new CDs in the last year), only 22% of those who aren’t buying new CDs say it’s because they are replacing the discs with digital streaming services. Most either don’t want any new CDs (27%) or find CDs to be too much money (23%). The Blu-Ray Disc Association reportedly has put together a new batch of standards for its next-generation 4K version. The new 4K Blu-ray discs are expected to be released towards the middle or end of 2015, and will support three different High Dynamic Range technologies. These include specs from both Dolby Vision; the HDR system that is being offered by Philips; and a joint HDR standard that comes from Technicolor, part of its MPEG/SMPTE proposals. MEDIA-TECH Conference Europe International Conference on Media Manufacturing Technologies The MEDIA-TECH Conference Europe 2015 will cover the topics that matter in media manufacturing, a broad spectrum of disciplines and technologies, from the production of polycarbonate and exciting content creation to business development as well as future trends in entertainment like 4K, pure audio, new Blu-ray formats and the link between physical and digital media. General Information Venue: Mövenpick Hotel Hamburg, Germany Date: May 19, 2015 Registration Open Networking Coffee Networking Lunch break End of Conference Networking Party 08.30 am 08.30 am 12.50 pm 18.00 pm 19.00 -21.00 pm The new Blu-ray 4K disc specifications fit within the “Recommendation 2020” protocol advocated by the European Broadcasting Union (EBU). HDR is expected to deliver much wider color gamuts and “better pixels” to dramatically improve the visual quality of the 4K resolution screens. Both the new 4K Blu-ray discs and players may be available commercially by the end of the year MEDIA-TECH Conference Program (Preliminary Program - Subject to change without notice) Market Overview • Colonial Purchasing Group, Bryan Ekus: Colonial Purchasing activities in Europe • DisplaySearch | Solarbuzz, Paul Grey: Update on introduction of 4K and the next steps • Futuresource, David Sidebottom: Packaged video trends and the impact of digital • IBM, Donald Leake: Functional changes to Blu-ray security for UHD Blu-ray • IHS Chemical, Giovanni Coiro: Markets overview: Polypropylene, Polystyrene, Polycarbonate • IHS, Technology, Tanja Löffler: The future of physical and EST Latest News • Sony DADC, Jesper Schertiger: tba • Sky Germany, Stephan Heimbecher: Ultra HD-Live-Production • EUROPEAN BROADCASTING UNION, Yvonne Thomas: Development of 4K in Europe • University Marburg: A novel very high density, non-erasable optical storage platform based on bio materials • WLC, Marcel Gonska: Development of 4K Networking • Take advantage of an unparalleled opportunity to collaborate and connect with the potential partners, vendors, and colleagues in the entertainment package media industry. • Entrance is FREE to all registered badge holders. REGISTRATION & COST (Colonial members receive the same special discount as Media-Tech members) https://www.media-tech.net/europe15-hamburg/conference-registration/online-registration-step-1.html Colonial & MEDIA-TECH Member Registration Fee: 299 Euro (+ 19 % VAT/MwSt.) Includes conference proceedings, coffee breaks, lunches, Networking Party, access to the MEDIA-TECH Member Lounge and member meeting MEDIA Conference Ticket Bundles Available! Buy 5 and pay for 4 • Buy 10 and pay for 8 • Buy 15 and pay for 12 � � MEDIA-TECH ‘ Conference Europe May 19, 2015 Hamburg, Germany 2015 Catch the Latest News and Join the MEDIA-TECH Conference as Networking Platform The MEDIA-TECH Conference 2015 will take place on May 19, 2015 in Hamburg. Take advantage of presentations and discussions with leading media experts. Interesting topics are the new Blu-ray format and the influence of Ultra High Definition TV to future business. Register now for the Conference: www.media-tech.net For more information please contact: MEDIA-TECH Association | Bernhard Krause bernhard.krause@media-tech.net | Phone: +49-6181-9828020 www.media-tech.net P.6 Physical World Issue: 2Q15 Let’s Get Physical By Larry Jaffee April is my favorite month: Major League Baseball’s opening day, my birthday and Record Store Day (April 18). It’s absolutely great to see people excited about purchasable music in a physical form. In 2015, from a manufacturing standpoint, vinyl’s is not an easy format to jump into. Replacement parts are nearly impossible to come by one they break, which is why some pressers are ingeniously turning to 3D technology to make what’s needed. Although consumer demand is creating a deluxe market that most thought disappeared years ago, music labels wish they can get their records instead of waiting for months. (I know you’re thinking, no such problem with CDs.) Well unfortunately vinyl is the only music format showing growth, and that includes digital downloads. In January I attended a jazz conference in New York, and the good news there is that jazz enthusiasts haven’t given up on CDs, and in fact, sales last year showed flat to slight growth, whereas there were double-digit declines in pop and rock, according to a Sony Music employee. However, the good news is that jazz is still being taught in the schools. In fact, one of my clients, Marsbeat Studios, produced a jazz card deck of 35 of the genre’s greats (e.g., Coltrane, Davis, Parker, Monk, Mingus, et. al.) that is being introduced to the high school curriculum of New York City’s Frank Sinatra School for the Performing Arts, which Tony Bennett founded. More information about these collectible jazz cards is at www.americanmusicpioneers.com. (Marsbeat is also working on a blues collection.) In the same way that teacher Bill Stevens is introducing vintage jazz to teens who don’t have an affinity for packaged media the way we do (or even the baseball cards of our collected youth), the jazz cards add a physical dimension to the listening experience. True, the hearing part is ethereal and certainly enhanced when looking at a beautifully illustrated portrait backed with biographical information about the musician. A recent op-ed article in the New York Times, ostensibly about Starbucks no longer selling CDs, absolutely pissed me off. Its author, who’s “sweared off” CDs, has written about music for numerous publications, including Rolling Stone. When she moonlights as a D.J., she no longer hauls around crates of LPs and CDs in favor of her MP3 collection and iPad app. Meanwhile, the CDs gathering dust in her basement “are more memories than objects.” She cringes when labels send her promotional CDs, which she regards as “an occupational hazard.” She even complains about having to open up packaging. I’m glad she discovers new music on Soundcloud and Tumblr, which she admits doesn’t feel “as adventuresome” (to what?) and that she sort of misses browsing the Virgin Megastore. As much as adore my Spotify subscription for music discovery, music creators cannot live off the pittance from the streaming model, which is why I buy physical when I come across a piece of music that I really want to hear it again. I hope she can get people to move on the dance floor because she appears to know absolutely nothing about the holistic music experience. She runs contrary to every music critic I’ve ever encountered – and I know many. We’re all music fanatics, and collectors. We covet the tactile: cover art, liner notes. And yes I prefer holding an LP gatefold cover to a CD. You can whine about a jewel case, but even a well designed Digipak and booklet trumps looking at the iTunes interface of what song is playing on your laptop. She should be banned from Record Store Day as far as I’m concerned. Colonial Purchasing Co-op Contact Info Phone: +1 747-777-2081 Email: bryan@colonialpurchasing.com Web: www.colonialpurchasing.com Recommended Reading: Another Nail in the Coffin? Starbucks to Stop Selling CDs - Billboard http://www.billboard.com/articles/6479986/ starbucks-stop-selling-music What Starbucks Is Ditching Along With CDs NYTimes.com http://www.nytimes.com/2015/03/29/opinion/ sunday/what-starbucks-is-ditching-along-with-cds. html?emc=eta1 http://www.c2meworld.com/commerce/streamingmusic-sales-tops-cds-in-2014-by-20-million/ In Praise of Packaged Media California’s Amoeba Music turns 25 – The Guardian http://www.theguardian.com/music/2015/apr/03/ amoeba-music-record-store-marc-weinstein Meanwhile, on the other coast, Rough Trade celebrates ‘Empire Records’ turning 20 http://blogs.villagevoice.com/music/2015/04/bbq_ films_empire_records_rough_trade_nyc.php Let’s Get Physical – Creative Review http://www.creativereview.co.uk/cr-blog/2014/ december/lets-get-physical The Vinyl Revolution Fat Possum Opens Its Own Vinyl Pressing Plant to Meet (Its Own) Demand - Billboard http://www.billboard.com/articles/ business/6413807/fat-possum-opens-vinylpressing-plant Why Is It So Hard to Press a Record? – 5 Magazine http://5chicago.com/features/2015-record-pressingdelays/ Vinyl is the future at record stores - Reverb http://www.heyreverb.com/blog/2015/01/07/vinylcds-future-album-sales-record-stores/98870/ Obit Legendary Mastering Engineer Doug Sax Has Passed Away – Analog Planet http://www.analogplanet.com/content/legendarymastering-engineer-doug-sax-has-passed-away Golden Ears: Vinyl vs. CD Doug Sax (rip) on CD’s shortcomings – 1999 Stereophile http://www.stereophile.com/interviews/sheffield_ steel_doug_sax/index.html Why CDs May Actually Sound Better Than Vinyl – LA Weekly http://www.laweekly.com/music/why-cds-mayactually-sound-better-than-vinyl-5352162 41 Years of Music Industry Change http://www.digitalmusicnews.com/ permalink/2015/04/10/41-years-music-industrychange-41-seconds Newsletter editor: Larry Jaffee, lsjaffee@gmail.com P.7 Physical World Issue: 2Q15 Sponsors Platinum Sponsor Sabic Innovative Plastics www.sabic.com Silver Sponsors Copper Sponsor General Sponsors LENCO, INC-PMC www.lencopmc.com SINGULUS TECHNOLOGIES www.singulus.com MEDIA-TECH Association www.media-tech.net Symcon www.processtechgroup.net MESA Alliance www.mesalliance.org Member Directory ADO Mexico www.aod-mexico.com MEDIA-TECH Association www.media-tech.net Alpha Authoring & Mastering Services Inc. www.g3mastering.com Music City Replication www.newlifedigitalmedia.com Audiobec Recording www.audiobec.com OK-Medien Service GmbH & Co. KG www.okmedia.com Blue Media Supply, Inc. www.bluemediasupply.com Optical Disc Solutions srl www.ods-bs.ro CD Video Manufacturing, Inc. www.cdvideomfg.com Promese Netherlands BV www.promese.eu CDA GmbH www.cda.de Rainbo Records www.rainborecords.com CDA Inc. (Formerly OEM) www.cda.us RSB iMEDIA www.rsbimedia.com CDI Media, Inc. www.cdimedia.com SNAdisc www.snadisc.com Cine Magnetics www.cinemagnetics.com SONY DADC www.sonydadc.com Disc Makers www.discmakers.com Spinergy www.spinergymedia.com Duplium www.duplium.com Technicolor www.technicolor.com Great Lakes Media Technology, Inc. www.glmt.com The ADS Group www.theadsgroup.com ISODISC www.isodisc.com TSI CD Manufacturing kdg mediatech AG www.kdg-mt.com Media Industries – kdg France www.kdgflash.com VDC Group www.vdcgroup.com Video Services Group, Inc. www.vsginc.net WTSmedia www.wtsmedia.com
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