DEG COLLABORATES ON GREEN INITIATIVES

Webinar Highlights Industry-Wide Improvements in Sustainability

April 2, 2009

Today, exactly one year from the inaugural Green Media Summit, DEG: The Digital Entertainment Group announced its progress in the area of sustainability in the home entertainment supply chain. The industry association highlighted an 11 percent carbon footprint reduction of the DVD between 2006 and mid-2008 across all studios, resulting in savings of 130,000 tons of CO2. The DEG, in conjunction with Video Business and Content Agenda, held a one-hour webinar with a panel that included Wilk, Vice President, Worldwide Operations, Walt Disney Studios Home Entertainment; DEG Operations Committee Vice Chair Dan Miron, Executive Vice President, Worldwide Supply Chain Management, Warner Home Video; Replication & Retail Execution Task Force Chair Mike MacDonald, Executive Director, Supply Chain Operations, Sony Pictures Home Entertainment; and Logistics/Distribution Task Force Chair Mark Pierson, Director, Supply Chain/Logistics, Paramount Home Entertainment. “The most important take away is that working under the guise of the DEG, the industry came together as one for this initiative,” said DEG Chairman Bob Chapek, President, Walt Disney Studios Home Entertainment, who supplied opening remarks for the webinar. “They collaborated in a productive and effective fashion. Included in this process were our industry partners – the retail and replicator communities – who are integral to helping us all make a difference. Working as one, we were able to accomplish so much more than if each of our companies had gone down this road individually.” DEG Green Ambassador Larry Wilk provided an overview of the group’s five Green Task Forces: Metrics, Replication, Packaging, Logistics/Distribution & Retail Execution. Wilk detailed the advancements within each Task Force, underscoring the group’s key accomplishments. The five Task Forces are made up of DEG members across all studios. Replicators and transportation carriers have also been involved in the DEG’s sustainability initiatives. Members report to the DEG’s Operations Committee. The Task Forces’ first steps were to establish a carbon footprint baseline for the industry and set measurement boundaries, which were broadly defined to ensure that they provide a true indication of the industry’s environmental impact. Measures taken included switching to lighter weight DVD packaging wrap paper, going from 100 lbs. to 80 lbs., using a lighter Amaray case (from 83 grams to 53 grams), and reducing o-sleeves and inserts. Also, the Blu-ray Disc package is 30 percent smaller than a standard DVD package. The Green Task Forces have expanded their efforts to include DEG Europe and DEG Japan, where they’ve shared best practices and key learnings on sustainability. The group has also shared its progress with the music, and video game industries. Moving forward, the Green Task Forces will continue to collaborate and focus on sustainability, cost reduction and further reduction of the industry’s carbon footprint. Each additional five percent reduction above the 2008 baseline would generate a total industry reduction of 25,000 tons of CO2 per year. The webinar link and presentation deck will be accessible shortly. Please reach out to the DEG for details.

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