The DVD/CD Distribution division, also known as Alliance Entertainment, LLC (AEC), is the leading independent distributor of DVDs and CDs in the home entertainment products marketplace. Servicing national music and video retailers, mass merchants, with variety, e-commerce and independent channels, AEC offers the most extensive DVD and CD product inventory in the U.S. In addition, the Division provides distribution and fulfillment services for a growing inventory of videos, video games and related merchandise.

Responsible for about five percent of total U.S. DVD sales and more than eight percent of all CD sales, the Division boasts the largest in-stock catalog of DVDs (70,000 titles) and CDs (265,000 titles) in the industry. Its wide-ranging fulfillment capabilities, innovative technology and industry-leading logistics model has resulted in the company winning the coveted National Association of Recording Merchandisers (NARM) large wholesaler of the year award for the past several years.

The Division's core business is composed of the Distribution & Fulfillment Services Group and Consumer Direct Fulfillment (CDF). It services over 30,000 storefronts and ships approximately three million individual consumer orders annually.

Distribution & Fulfillment Services. The company's fully integrated products and services are supported by a formidable marketing infrastructure that includes state-of-the-art vendor managed inventory (VMI) systems, information and rebate services, and trained sales, service, and merchandising personnel. Clients include Toys 'R' Us, Barnes and Noble, Walgreens, and Kmart.

Consumer Direct Fulfillment (CDF). CDF provides backroom services for almost every major domestic music CD and video e-commerce site including amazon.com, barnesandnoble.com, sears.com and many more. TheStore24 Internet platform is a fully integrated "plug n' play" site for retailers offering consumers the opportunity to shop AEC's vast inventory of DVD/CD SKUs under the retailer's brand site. TheStore24 architecture is easily adaptable, with administrative tools that allow e-retailers to change pricing, feature chosen products on sale, and modify shipping options. This Internet platform offers fully individualized reporting systems providing information about traffic, visitors and sales.

NCircle Entertainment, the Division's licensing unit, is focused on family and children-friendly products, and complements the company's existing home entertainment distribution offerings which NCircle also markets. Popular titles licensed by NCircle include DIC's "Horseland," "Sabrina," "Sonic the Hedgehog" and "Super Mario Bros."; Thomas Nelson's "Hermie and Friends"; Word World, LLC series, "WordWorld"; and Bert Smets' "Hopla."

AEC is headquartered in Coral Springs, FL. The Division has a state-of-the art warehouse facility in Shepherdsville, KY.