#CDROM for Library
23-Jan-93 16:36:09
Sb: #37806-#CDROM for Library
Fm: JAN SCHWENK 70053,1702
To: Philip A. Turner 72650,74
Phil,
Please E-Mail me the good doctor's address. I will be happy to send him
some thoughts by mail.
Re: What to convert: Start with history, documents, photos, etc. of which
the LC must have the ultimate collection. Either invite some private
companies to co-produce (I'm sure that Bill Gates would JUMP at the
chance!), or do it on your own, but set up a pricing structure that allows
you to sell to/through distribution. There are many very good distributors
around, Compton's comes to mind (they're selling between 20,000 to 30,000
discs per week). I'm equally sure that many of the pressing houses will
probably extend credit for the work and accept payment after discs are sold
(public service minded souls, that is). Then price the discs so the retail
is low, say $29.95. You could probably command a wholesale/distributor's
price of $10 or so and should be able to sell 10-30,000 discs per title per
month (assuming you really get your teeth into this, go after schools,
libraries, dealers, etc). Starting with one title could give you a
positive cash flow of $100,000 per month, that would increment as new discs
are put on line. Now you've got the money to do many more, and make yet
more money (not for profit, of course, but to finance the further
conversion).
I am sure that others will have slightly different views of this, but there
is a wealth of talent that you can draw on here in the Forum.
The 3M folk are in the forum frequently–they would be the ones to advise
you on life of disc. Remember, however, that the disc master is made of
nickel and not subject to deterioration – just press more discs one hundred
years from now!
As to private companies undercutting you, they only will, or can, if you
leave them room. Price the disc either so they can earn a margin by buying
it from you and re-selling, or price low so they can't compete. You've got
the storehouse of data that is of value. No one in the world could produce
for less cost than you.
(cont)