GreenCD is business model cum product being developed by Bangalore based startup, GSEC1 Information Systems. The goal of GreenCD is to optimize the supply – demand dynamics for the entertainment industry and bring ‘on demand’ manufacturing, distribution and delivery of media.
Think of it this way – currently, music production companies produce, manufacture and distribute thousands of CD’s to be sold in various retail outlets. This is fairly inefficient, because if the album is a dud, the production company is met with a glut of unsold CD’s, for which there is no consumer demand. This is where GreenCD steps in. By providing a software-hardware combo product, each retailer has a CD/DVD vending device, which can can burn the CD’s / DVD’s as per the consumer demand. This not only optimizes the supply-demand equation but also drastically improves the channel distribution.
Record companies upload music / tracks to GreenCD’s portal for distribution and both consumers and retailers can access the tracks as needed from the portal.
While GreenCD is really trying to solve a real problem, I wouldnt hedge my bets on them. The way I see it – music distribution and delivery has already started transitioning to an all digital, direct to consumer model. CD sales have been dropping every consecutive year and more and more people prefer to simply buy their music online. What sense does it make to focus your effort on building a CD vending device for retailers / distributors when people will be accessing most of this media online anyways ? Most of the benefits that GreenCD claims it will bring to record companies – analytics, anti-piracy, cost-effective, efficient etc. – can be accomplished via a direct to consumer model as well. So, I’m not quite convinced on why a record company needs to use GreenCD to get these benefits.
What do you think ?
Apart from the move to purely digital distribution channels, the other problem I see is in the disc itself. Will it use a normal CD / DVD burner? Burnt discs are simply not reliable like the normal CDs we buy. The data is physically pressed onto normal CDs unlike ones that are burnt. I would be hesitant to spend money on something that wouldn’t last long. It would be very impressive if they have a solution to that though…
i think the key here is to get the devices seeded across retail locations and get the consumer to buy ‘on demand’ from this system. Once that happens, it is just a matter of either putting it on CD/ DVD or on any other form of electronic media like flash drives, mp3 players etc. Ofcourse there will be some encryption attached to it.
One critical component of this system would be the search functionality. The consumer would not want to spend too much time searching for what she wants. One way to beat this is to provide access to the library over the internet. Thus, the consumer can search, create their own ‘buy list’ and then go to the local retailer and get it pressed on a CD/ DVD.
What this thing will really do is:
- enable the retailer to store an almost infinite range of songs/ movies
- Make the cost of accessing these very low
If this works, it will be a phenomenal innovation for the industry.
Thank You Thejo
Our technology uses raw optical media write technique, we take whole of the music / movie / games / software content and encapsulate in our framework and write on the optical media.
So, it does not affect or change the bit rate in which recording was done, it writes the information in the same bit rate and the format.
We will appreciate any other queries you have for us.
Thanks & Regards,
Kumar Ritesh,
Founder,
GSEC1 INFORMATION SYSTEMS
Hi dhruvank,
Thanks for your comments, yes we have build major search algorithm that helps to reduce search time, secondly we have mechanism that helps to search before you fully type the name of title, album, artist, song and keywords etc.
Each of these vending device comes with storage space that can store music / movies / games etc.
Vending device comes in 6 models,
1. 1 CD model
2. 10 CD model
3. 25 CD model
4. 200 CD model
5. 500 CD model
6. 1000 CD model
1, 10, 25 CD model is targeted for retailer like planet M, Music world and Landmark etc.
Whereas 200, 500 and 1000 CD model is targeted to Tier I, II and III distributors.
These devices will be able to produce 1, 10, 25, 200, 500, 1000 CDs / DVDs in 44 seconds at a time.
End User Benefits
1. Burn the CD/DVD at their place of business whenever they want
2. Less production cost, so less ownership charge for end users
3. No overhead of distribution costs reduce the cost by 30%-40% of MRP
4. Reduce transportation and packaging costs that covers 10%- 20% of MRP
5. Regulate the current chaotic management of releases
6. Speed at which title can reach end customers
7. Stop piracy
8. Online payment
9. Secure and single point controlled operation
10. Reduce reproduction costs
11. Reduce waiting time
I hope that helps…
Thanks & Regards,
Kumar Ritesh,
Founder,
GSEC1 INFORMATION SYSTEMS,
Hey Ritesh,
Thanks for the information. I would like to know more about your system. Can you send me your email ID so we can take this discussion forward offline.
a similar initiative was started by the RPG owned Saregama called HamaraCD.com, which had both online as well offline components to it. They had initially seed the planet-M’s and Rhythm Houses of the world. But after some time it they were moved out. Guess it didnt get the required/anticipated traction. The online component is still working though. So it does not look very encouraging. still I wish them all the best
ghosh
thanks for bringing that to out attn.
Thank You for your valuable comments and feedback,
There are other player like HamaraCD.com
• cdUniverse
• HMV online
• iTune
CDUniverse and HMV online are stores whereby individual users can buy CD/DVD titles direct from them.
iTune allows users to download individual songs.
In each case however it must be made clear that their particular solution is aimed as an ease of buying for an individual and not as an alternative to mass production in a regular “production house” and its relative distribution channel.
Our intention is to streamline the business process of actually producing the end product in its initial stages in the production house, and in doing so saving costs in many areas of concern and thereby reducing significant losses and also helping the environment.
Thanks & Regards,
Kumar Ritesh,
Founder,
GSEC1 INFORMATION SYSTEMS
After going through the article It looks like the target end customer of GreenCD business model are production house and retailers. Looking at the current Indian music/movie industry this solution will help to revolutionist there distribution channel. It has a potential of delivering CD/DVD on demand basis. I can see this solution a big prospect in Airports where people can just go to the wending device and can take a copy of there music album or movie just by press of a key. Even though according to the facts there is a 9% drop in the CD/DVD sales, there are chances that this solution will reverse the figures. If you look the success of digital media is due to the fact it’s available on demand. With this solution there is high possibility of getting CD/DVD on demand basis very similar to the digital media.
Here are few informative comments from http://www.indianmi.org(IMI The Indian Industry). The GreenCD solution might be the answer for this.
“The Indian music industry needs to adapt to this swing in audience preferences by leveraging appropriate technology in a facilitating regulatory environment. Going forward, the industry will need to focus on controlling its distribution and manufacturing costs. This is likely to enhance the industries bottom line and result in more capital being freed for investment in technology and infrastructure.”
“Recovery and growth
From a perspective of pure financial returns and looking at other alternatives and more attractive avenues available to the entertainment sector the music industry will need to completely reinvent its business models in order to attract significant investments. In the future it is hoped that the film and the music industries will work co laboratory aided by digital infrastructure, affective distribution formats and a more conducive and effective regulatory regime , to combat piracy and get the listener back into the buying mode.”
Hi musicguy,
Thank You for your comments and suggestions,
The other Differentiation Factor that i would like to mention here,
Targeted toward production houses & their supply chain using device similar to ATM machines in public places. By using this device, costs will be considerably reduced in areas of wastage, manufacture, printing, reproduction and distribution.
Also if you look at the current global market for the just music industry is,
-> Current global market is at more than US $50 billion
-> Total annual sales unit at more than $2 billion
Which is very significant figure to answer to.
Other Intellect property of the solutions,
Anti-Piracy for Optical Media
Anti-Piracy for Digital Media
Content Compression and Transfer Protocol
Anti-Copy software for Music / Movie / Software
Push based download protocol
Digital Signing for Music / Movie / Software
Thanks & Regards,
Kumar Ritesh,
Founder,
GSEC1 INFORMATION SYSTEMS,
ritesh,
thats kinda funny. you’re responding to a comment left by your own PR team.
Another benefit which i can see with this solution is unsold title being electronic environmental hazard for us, by this it will not eliminate but definitely reduce it.
Look at the story
https://intranet.thefirstpost.co.uk/2697,features,what-happens-to-unsold-cds
Dear Pranav,
I feel that GreenCD is too little & too late. Already latest DVD Players/ Car Stereos are coming with USB drive connection feature. So why would a person need a CD/DVDs, if he is using USB Drive ?
I guess that time has come for music / entertainment companies to reinvent their business model/process.
Thank You
With Regards
Santhanam
Hi Santhanam,
Thank You but unfortunately we are not talking about future at the moment, we are talking about present and trying to find ways and means to help the industry to lower the wastage cost.
I hope you will appreciate the fact that still all over the world penetration of digital media is still quite low, although there is rise in the figure.
With GreenCD we are trying to target both optical and digital media, lets take a example if you are travelling and all of sudden you desire to listen to particular title / album or a particular song on the airport, at the moment you need to go & download the song on the pc then transfer to your digital device. Now if you take same scenario with GreenCD, you can go to the vending device insert your USB and download the same legitimate song / title / album in digital format directly into your digital device.
Thanks & Regards,
Kumar Ritesh,
Founder,
GSEC1 INFORMATION SYSTEMS,
Dear Kumar Ritesh,
It is very interesting to know that GreenCD vending machine is supporting USB Drive based distribution also.
As far as i can observe now, knowledgeable users (even though not tech savvy) go for DVD Players / Car Stereos with USB port. So i don’t think that USB based music/entertainment is futuristic.
I feel that depending only on Music World & Planet M etc., for distribution for mass consumers may not bring desired results.
I hope that GreenCD vending machine is cost effective compared to a multimedia PC. But whether it will be cheap enough, so that local retail chains / retailers can afford it (I am not mentioning about national/international retailers) . Unless it is cheap/affordable like the Credit Card Processing Machine/Terminal, mass distribution will be difficult.
May be Music World, Planet M type of chains will be able to reduce their logistics cost apart from cost of unsold DVD/CDs.
Thank You
With Regards
Santhanam
I feel the solution would be a good one as it is also going to eliminate environmental waste and prevent green,may be due to that the name “GreenCD”….Anyways but if u would look at IMI(Indian Music Industry) stats, the industry estimates approximately 15 crores of legitimate unit sales of
music cds in the past year, with an average realization of
Rs.40-45. This brings the size of the industry to about Rs.670 crores (USD
149 million) .On a conservative basis, the music industry has been pegged to
grow at 3% over the next five years and is expected to touch Rs.777 crores
by 2009.So I think it makes sense to accept the model because in my perception the physical optical media is not going to get vanish out even if digital media is increasing day be day and moreover if you see India where internet penetration is not that much high for buying online music….IMI states that current music industry annual revenues INR 10.2 billion of which 92% still comes from physical media and rest of it comes through non physical media(digital)….Music industry is now in need of this kind of solution desperately as it would eliminate their distribution,transportation and wastage costs exponentially and the solution like this can bring them out of their huge losses…So guys thumbs up for this kind of pioneer solution for entertainment industry where the customer will have guarantee to get the CD from his neighboring retailer itself even if the legendary music is unavailable in the market…
@musicguy, @ravi T, @mad4music,
just an FYI — Wordpress records your IP when you leave a comment.
Based on your comments & considering that all are recorded from the same IP, I’m guessing you’re affiliated with GreenCD in some way.
If so, I think its a better strategy to openly comment with your real identity and real affiliations (if any). Being open and publicly defending your product is great – but when you mask your identify in this form, it doesnt speak volumes.
Hi Pranav,
Sorry I have nothing to hide, I work for PR agency in Bangalore called aditi communications under flagship of k2 communications.
Recently we have taken up PR contract with GSEC1 INFORMATION SYSTEMS.
My majors are into Green IT and Electronic waste management and control.
I hope your forum does not stop people writing in favor of an initiative and intention was to answer few of the issues raised.
Since being in touch with the team here I have fair understanding of the overall system.
I firmly believe policing does not help any forum, it is meant for open discussion, hope you will appreciate it.
Anyway I have intimated the same to GSEC1 INFORMATION SYSTEMS team about certain queries hope they will answer soon.
Thank You,
Ravi T
indian music is kind of cool and very stylish`,”
Indian Music is really cool and some of it are great dance music too.`~,