AOL Time Warner To Sell CD and DVD Pressing Plants Print E-mail
Friday, 18 July 2003

In a move designed to cut down on AOL Time Warner’s staggering debt, the company is reportedly selling its CD and DVD pressing plants to a Canadian Company for $1,000,000,000 in cash.

While the move helped AOL’s stock today one has to wonder what it means to its long term plan as a record label and home video company. One of the biggest problems facing Sony Music and Universal Music Group is finding pressing plants that can make enough hybrid SACDs to keep up with the demand for the new format. Many new plants have been opened since the advent of SACD reportedly with support from Sony. AOL Time Warner’s move seems to be in the exact opposite direction. With AOL Time Warner’s sports franchises on the block next, it makes one wonder if the rumors of the WEA music conglomerate being for sale are true? Computer companies like Apple and Gateway are openly aware of the future of the convergence of AV and the PC. Apple most specifically has reason to make a move and they have the cash and credit to make it happen. They were rumored to make a move for Vivendi’s Universal Music Group but that never materialized. UMG is still on the block with the latest unsuccessful suitor supposedly being MGM.

The fact is consumers are still interested in music but they want it their way, Apple and others to follow, will continue to expand the downloadable model however there is still going to be a revolution in the world of prerecorded music and don’t count out any of the computer giants who are looking beyond exclusively selling low profit margin PCs to lucrative software in all formats.

Source: CNN.com




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