DVD Makers: DVD Still King

Bob Johnson
Just when you thought DVDs were cooling off, along comes a company that has built a its business replicating the medium. DVD Makers, Inc., nestled just north of the infamous San Fernando “porn” Valley is betting against the odds and from all indications is on a hot streak. According to Director of Sales and Marketing, Mike Kulich, the company is not only a DVD replication firm but is a full-service facility that also offers full offset printing and promises a fast seven-to-10 day turnaround on movies.

DVD Makers is actually the spawn of long-time production and distribution company Caballero Video. Kulich said the company was founded after he had met owner Tom Yofe in June 2009 who wanted him to sell the caballero video line.

Kulich at the time as working for male enhancement company Cockstar and had prior experience selling for IVD but felt that there was great opportunity at Caballero. “I was a little apprehensive at first because I wasn’t sure video sales is what I wanted to do. So I recommended that Caballero start its own replication company,’ Kulich said.

Because Caballero traditionally handled its replication and printing in house, and had all the necessary equipment, Kulich explained that it wasn’t a stretch to think the company could better monetize tits facility and bring in outside clients that needed these services.

Caballero was on board and hired Kulich to run the new operation if he could bring in some new clients. The first to step up was Platinum X’s Ralph Ceglia just as Kulich began his new position.

“It was very hard to land our first clients because we offered a great price point and fast turnaround. DVD replication is a ‘penny business’ so the margins aren’t that high. The service needs to be there. No other replication company has a printing operation under its roof so we can offer companies a way to coordinate all of their needs,” Kulich said.

Some of the other services DVD Makers provides is dvd-5, dvd-9 and dvd-10 replication, offset printing, various packaging including digi trays, colored cases, DVD wallets, specialized magazine packs, and all MM cases.

Kulich said that the in-house printing gives him the ability to print catalogs, DVD inserts and case wraps, posters and even magazines.

“Our customer service is also key. Each account has a service and sales rep. My customers to contact me on my cell 24/7 and I always pick up.”

DVD Makers will also hand delivered check disks within 2 to 3 days of receiving the job and can facilitate rush jobs. There’s also free pick-up of master in the San Fernando Valley and Los Angeles area.

DVD Makers has well-established competition like L&M Optical Disc West in Santa Clarita, especially since the advent of Blu-ray, a service Kulich doesn’t offer. “We don’t do Blu-ray because frankly we don’t think it’s worth it. While I was at IVD I saw only two Blu-ray movies do anything. I’d even met with Hustler a few weeks ago that said their Bluray sales were horrible. It’s hard enough for a consumer to spend $20 now for a DVD no less $80 for Bluray,’ Kulich said.

One of DVD maker’s clients, Adam & Eve pictures uses both L&M and DVD Makers and finds Kulich’s operation to be a great option. Bruce Whitney, product development director for Adam & Eve said that he replicates one or two titles a month with DVD Makers and finds the pricing very competitive and the customer service “extraordinary.”

“Finding a good option has been very difficult. We always have a secondary backup so DVD Makers fit perfectly. The word is getting around our company so there’s lots of interest here at Adam & Eve,” Whitney said.

When asked about the decline in the entire DVD market Kulich said his company is prepared to ride it out. He admitted that DVD sales are decreasing and that will affect his company. The average studio replicates about 2,000 pieces (gay about 500) but it’s likely to drop even more.

“DVDs will always be around. There are the 40 to 55 year-old age demographic that still embraces the DVD. They aren’t going online to see porn so there will still be customers,” Kulich said.

He noted that retail stores still purchase DVD for rental. The executive said with 300 million people in the U.S. it’s hard to believe only 2,000 will continue to buy porn on DVD.