In the mid-1990s, Technicolor innovated a process for satisfying public demand for movies by manufacturing and shipping directly to the retail outlets where they are rented or bought. Technicolor’s customers are the movie studios that own the duplication rights. The studios place orders with Technicolor to manufacture certain quantities of each movie and they then place separate orders to ship certain quantities of each movie to specific retailers and wholesalers. In between, an inventory of manufactured VHS tapes and DVD disks may be warehoused by Technicolor on behalf of the customers for later shipment on demand. In addition to serving all of the world’s major movie studios, this modern and efficient system has now become available to the computer software industry, providing Windows, XBox, and other CDs direct to retail outlets for Microsoft Corporation.

     The chart below illustrates the process of manufacturing and distribution of data media by Technicolor HES. The process starts with the delivery of a master copy of the data to be reproduced, either a movie or software, together with any associated artwork to be printed on the cassette or disk. These masters are used to make the manufacturing patterns from which the actual product will be replicated. Short-run samples may be produced and checked by the customer, if desired, for quality assurance. Next comes the actual quantity manufacturing of the tapes or disks. After that, the media are packaged into retail units (or they may be stored in bulk form for packaging later). If desired, the product may be assembled into store displays or other forms of custom packaging. Finally, the product is ready to be shipped to stores and wholesalers.

     A product going through this process may be either a new release or a catalog item. A new release is a product whose street date has not yet been reached. This means it is not yet available for sale in stores or other public channels. A catalog item is the opposite, a product that is currently available to the public. Sometimes a catalog item may be revised or re-released. If the revision is minor, it may remain a catalog item. If new material is added and there is a new marketing push with a new street date, then it becomes a new release again. This distinction is determined by the customer.