Why Buy Disc Makers When CD Sales Are In Free Fall?
[UPDATED] While CD Baby and related digital properties were bought last week by Downtown Music for a reported $200 million, its physical good companies Disc Makers, BookBaby and Merchly were not a part of the deal.
Now a newly created entity led by company executives, DIY Media Group, has acquired those assets.
But why buy a CD plant and other physical good manufacturing assets at a time when streaming and digital music and media sales have clearly become the format of choice for most consumers?
The new DIY Media Group is more than just a CD factory. The company offers content creators – musicians, labels, authors, publishers, and filmmakers – a suite of physical media including CDs, DVDs, Blu-Ray discs, vinyl records, USB cards, books, eBooks, and printed garments.
“There will always be demand for physical media,” stated Tony van Veen as he proudly announced the acquisition of the assets of the physical media businesses from AVL Digital Group by the Disc Makers executive team. “The recent vinyl and cassette revival and the robust growth of printed books for independent authors show the sustaining market demand for products you can touch and hold,” mentions van Veen.
“How could a surge in CD demand not be next?” he asks tongue in cheek. “While optical disc volume continues to slowly wane, other types of media like books, merch, and USBs are seeing strong double (and in some cases triple) digit growth to make up for those declines."