More than two weeks after London rioters burnt Sony’s Digital Audio Disc Corporation (DADC)’s main London distribution warehouse of CDs, DVDs, and Blu-rays to the ground, Sony DADC announced a temporary arrangement for its distribution problems in the United Kingdom.
Sony DADC announced that the plan will be in collaboration with disc replicator Cinram and the logistics company Cert Octavian who have offered office, storage, and distribution space and capabilities at their facilities.
The fire at the Enfield facility on August 8th destroyed the CD and vinyl stock of more than 150 independent record labels, resulting in the destruction of more than 25 million discs, an estimated $49 million in damages including the building.
Darren Houghton, managing director of U.K. distribution at Sony DADC stated, “within an hour after the incident at Enfield, Sony DADC’s Disaster Recovery Plan was in place and enabled a crisis team to start action.”
On August 9th, Sony DADC began manufacturing discs to replace the destroyed product at its Southwater production facility and expanded its direct-to-retail shipment capabilities to supply retailers.
The arrangement between the companies will allow Sony DADC to use storage and distribution facilities at Cert Octavian’s offices and Cinram will help ship Sony Pictures Home Entertainment products.
While these actions will help companies rebuild their stock as quickly as possible, some are working from ground zero. After the fire, Memphis Industries tweeted, “so all the stock we got left is sitting in our office. Devastated is the word. Thoughts go out to all other Pias labels too”
Also, film distributors, such as Palisades Tartan, were also significantly affected by the fire. “All of our inventory is gone, just gone. And we don’t know what we’re going to do next,” says Palisades Tartan CEO Soumya Sriraman. The Sony DADC facility held their entire stock for foreign markets.
While Palisades Tartan is not a household name, they are an important distributor of foreign films, particularly Asian cinema with movies such as the Oldboy and 2046.
While the effects of the fire will not be directly felt in the United States’ audio and video retail markets, the financial problems it will and has caused distributors that operate in the US could be devastating.