Licensing Opportunities (Pre-recorded Media)
        Effective April 2005 SLDI will offer licensing programs for all major categories of pre-recorded discs. Scratch-Less ™ Disc Industries intends to issue a limited number of exclusive / semi-exclusive licenses to select organizations that see the value in finally offering their end user the reliability and durability that will gain loyalty to their brand of products. Increasingly as industry trends compress more digital content onto a 12cm disc (IE: DVDs compared to CDs), the environmental damage  (scratches & scuffs) that accumulates on discs causes exponentially more malfunctions during use, frustrating the end users and pushing them to search for newer more reliable alternatives.

        Piracy and new technologies erode the ability of the organizations involved in the manufacturing and distribution of digital content on discs to maximize revenue. It is now more important then ever before that the consumers of Pre-recorded CDs & DVDs see the value in buying an Original Copy Disc. Already a lot is being done to entice them with added special features "NEXT GENERATION COLLECTOR'S EDITIONS", but no one has addressed the issue that a single scratch can cause the disc to malfunction and end users are tired of it. They don�t want to pay a premium for unreliable products.

Current market:  (Disc Purchase & Rentals)
        The purchase & rental of optical discs are the most common ways end-users are exposed to the content of pre-recorded Music, Movies, Games, ETC. and as industry insiders, we know that countless man-hours and tens of millions of dollars are spent to produce, replicate, and distribute a single title to its intended audience.

Concerns:
        Environmental damage. With all the money spent and all the time vested to deliver a flawless product to the store shelves, the simple fact remains that once the discs reach the consumer market they become exposed to environmental hazards that begin degrading the discs ability to properly function. Imperfections such as scratches or chips on a disc's data surface compromise that disc's ability to properly store data.  Eventually, as damage accumulates the disc's performance can degrade enough to render it useless, frustrating the user and causing them to search for alternatives.
        Lost revenue. During its first 45 days a new title is released on a pre-recorded disc to be used in the rental industry; its ability to generate revenue is at its zenith.  During this period, it is most critical for the rental organizations to maximize profits.  To maximize their competitiveness, most rental shops must offer customers assurances that their rental experience will be most satisfactory.  In the event a rental experience is unsatisfactory due to a flawed disc, the proprietor will typically appease the disgruntled consumer by offering them free or discounted service. 

For example:
        -If a disc is flawed, the individual that rented it will typically be offered a Free replacement copy to view during the next rental cycle.
        -After renting a flawed disc a consumer may be offered in addition to a free replacement copy of the same title, a credit for a complementary rental of an additional title.

        After renting a flawed disc, a consumer will lose faith in the organization he is renting from. After a second or third infraction, the consumer may discontinue use of their services altogether (or look to the competition for better quality).  Whatever concession/accommodations the proprietor must make to offset the disappointment the consumer experienced due to a flawed rental can be expressed in a single phrase: "LOST REVENUE."  Lost revenue during the rental lifecycle of a prerecorded disc was one of the leading reasons the Scratch-Less™ Disc technology was developed, and is the most compelling reason for content providers to offer our superior disc design to their customers (the rental shops).

Solution:
        The Scratch-Less™ Disc has the ability to prevent the most common types of environmental damage, including scratches, chips, marring, and gouges.   Any and all of these imperfections on a disc's data surface compromise that disc's ability to properly store data. As damage accumulates, the disc's performance progressively degrades, eventually compromising enough data to render the disc useless.  Through the use of our patented technology, SLDI and its licensees now have the ability to make available discs that offer value added features that actively protect themselves from damage during use and handling.

Increased revenue: (Improved rental cycle efficiency)
        The introduction of the Scratch-Less™ technology in the rental sector will immediately reduce the number of flawed discs, which in turn will reduce the occurrence of unsatisfactory rental experiences, thus allowing the proprietor to increase rental revenue and experience better customer satisfaction.

Increased revenue: (Retain value at resale)
        In an attempt to maximize revenue during the first days a new title is made available, a rental shop will bolster inventories to accommodate the frenzy to rent the latest titles. Let's say the rental shop orders 25 copies of title "ABC to be used for rentals, and lets say the rental demand for this title fades 45 days later; it is common practice for the organization to liquidate the overstock of rental units by selling the unwanted used copies to its customer base.  In this scenario, the rental house only desires to retain 5 copies for its rental program, meaning it will "sell off 20 copies of the title.  For instance, a used, slightly flawed copy would sell for $12.99 whereas a new flawless copy sells for $19.99.  It is a well known fact that one of the major determining factors, of the price, the used disc will sell for, is the physical condition of the disc (the better quality the disc is in, the more it will sell for).   Let's imagine a scenario where all 25 discs entering the rental program are Scratch-Less™ Discs. During the rental frenzy, the shop owner experiences zero unsatisfactory rentals, meaning there was no loss of revenue. Upon liquidation of 20 overstock copies, the proprietor can sell the still flawless copies for $19.99 due to the fact they possess the value added features associated with the Scratch-Less™ Disc. These transactions provide two compelling reasons for content providers to incorporate this superior deliver device into their product lineups.

        A third and equally lucrative reason would involve the introduction of the Scratch-Less™ Disc into their "Consumer ready products (the sale of pre-recorded discs directly to the consumers IE; at Best Buy, Sam Goody, Wal-Mart or Via the Web…).  For example:  When a consumer makes a decision to by the Star Wars Trilogy on DVD, they buy it with the intent of owning it for the rest of their life.  Typically, with countless man-hours and tens of millions of dollars spent to produce and promote a single title, a consumer is buying more than images and sounds recreated on their home entertainment system. They are buying a piece of history. At the point of sale, they justify their purchase by convincing themselves this piece of history is well worth the expense.  To this end, the concept of COLLECTOR'S EDITION was invented and intended to position a variant of a standard product as a superior product package that possesses value added features that justify a premium price.    Most of the time a seller relies on supplementary goods or services attached to the primary product to justify the premium to be charged.  With all this being said, and not discounting any of the traditional inducements added to a COLLECTOR'S EDITION product, the use of a value added technology such as the Scratch-Less™ Disc would allow for an even greater price, and ensure the consumer of a product that can perform far into the future.
        





        

        
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