Cinram has just signed a long-term agreement with Universal Pictures International for manufacturing and distribution of DVDs throughout the majority of Western Europe. Universal was left in the cold when German replicator ODS, which had snatched the contract from Technicolor in November 2006, collapsed earlier this year.

Cinram has set its eyes on the UPI contract ever since ODS ran into difficulty last year and, at some point, considered bidding for ODS' Dassow plant in eastern Germany. "We are delighted that Universal has selected Cinram for the majority of their European business," said Cinram chief executive officer Dave Rubenstein. "This is a great opportunity for us to leverage our existing European footprint to grow our core business and effect consolidation in the industry."

Under the terms of the agreement, whose financial terms have not been disclosed, Cinram will be increasing its manufacturing and distribution capacity to provide the additional capacity necessary to service Universal and to continue to provide best-in-class service to Cinram's other blue-chip customers throughout Europe.

DVD Intelligence has learnt that ex-ODS boss Wilhelm Mittrich acquired the intellectual property of the logistics software the company developed to run Universal's Europe-wide distribution network and intended to sell it for a fee reported to be up to €1 million for some territory. Cinram is understood to have declined the deal, opting instead to work through partners in several countries.

"Cinram's proven manufacturing and distribution capabilities along with their recognized customer-centric approach made them the best choice to handle our business in Europe," said Eddie Cunningham, President Universal Pictures International Entertainment.

Story filed 1) June 2008

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