CustomFlix On-Demand DVD Publishing Now More Profitable Than Traditional Replication

LOS GATOS, CA — CustomFlix dramatically increased the reach ofits unique on-demand DVD publishing solution with the introduction oftiered pricing. An industry first, the new pricing makes on-demandpublishing more profitable than replication and fulfillment for titlesselling up to a hundred copies per month. Even for a few thousand salesper year, on-demand publishing is now price-competitive withtraditional methods.

The adoption of CustomFlix on-demand publishing by content ownerssuch as BattleBots, Fox Sports, AFI, PBS Point of View, and a host ofindependent film and video makers, demonstrates how CustomFlix isleading the future of independent distribution.

"CustomFlix has enabled BattleBots to bring footage from our widelyacclaimed television series and live events to DVD without having to beconcerned with any sales infrastructure," said Greg Munson, Co-Founderand Principal at BattleBots. "The CustomFlix on-demand pricingeliminates the risk if our sales are lower than desired, yet itprotects our profits as sales increase. The absence of an upfrontinvestment in inventory allows us to focus our resources on promotions.When sales warrant, we can easily switch to traditional replication andfulfillment with CustomFlix to continue to maximize our profits."

CustomFlix offers a comprehensive end-to-end solution forindependent filmmakers and content owners who wish to self-distributefilms and videos. CustomFlix creates a custom e-commerce enabled webpage for every title, hosts streaming trailers, automatically lists DVDtitles on online catalogs, handles credit card processing, providestoll-free customer service, produces and packages professional-qualityDVDs, and ensures prompt shipment of orders directly to customers. Forhigher-volume sales, CustomFlix also offers publishing throughtraditional replication and fulfillment.

“Any title that has found traditional distribution difficultnow has the opportunity to directly reach their audience with virtuallyno risk or costly overhead,” said John Geyer, Vice President ofMarketing and co-founder of CustomFlix. “The price andcompleteness of CustomFlix on-demand publishing make this an unbeatablesolution for bringing new films and back-catalogs to DVD.”

Pricing Details

CustomFlix on-demand pricing is now a tiered model based on totalmonthly sales. For producers who sell fifty or more DVDs per month, thetotal cost of on-demand production and fulfillment is $6.95 per sale.For those who sell twenty to forty-nine per month, the cost is $7.95.For nineteen or fewer sales, the cost is $9.95. An additional 5% isadded for credit card processing. The pricing is based on totalon-demand DVD sales from all titles in a producer’s account.Costs for on-demand VHS, warehoused DVDs, and DVDs with additionalmaterials are unchanged. The new pricing takes effect on March 1st,2004.

About CustomFlix

CustomFlix Labs, Inc., the pioneers of on-demand video publishing,is democratizing film distribution to help independent filmmakers,video makers, educators, and content owners make their programsavailable to a worldwide audience. With its unique on-demand videopublishing service, CustomFlix has brought together the best componentsof just-in-time production, e-commerce, and the Internet to givefilmmakers a revolutionary new way to self-distribute their programs asphysical DVDs and VHS tapes.

CustomFlix eliminates the financial risks associated withtraditional video publishing and increases profitability by allowingproducers to pay for production and promotion of their product as theymake sales. There are no minimums or exclusivity, and film and videomakers maintain complete control of their works at all times. Foundedby the same team that initially developed Media Cleaner Pro, theaward-winning industry-standard application for encoding video,CustomFlix management has a proven track record of successfullydelivering solutions for film and video professionals.

More information is available on the company’s website at www.customflix.com.