Media and communications services provider arvato digital services, a division of Bertelsmann AG, has a new e-distribution platform called arvato RED (Retail Electronic Distribution).

The RED distribution platform, acquired by arvato in Q3 2009 from Canadian technology company Protexis, is now fully integrated into the arvato product range to seamlessly deliver digital services for online stores.

Initially released in North America in 2007, arvato RED has a growing presence in Europe. It brings together online merchants and publishers world-wide and boasts a comprehensive portfolio of software and games packages as well as other niche products.

Historically, software vendors have been unable to properly tap the potential of the multi-billion dollar ESD (Electronic Software Distribution) market and were restricted to selling their licences directly through their own websites. Up to 80% of consumers, however, prefer to buy software centrally from mainstream sources.

The problem for the main online retailers was that different software vendors would use different platforms for managing their online sales. This meant they would have to use a separate ESD platform for every manufacturer which proved too complex and costly to manage.

Alternatively they could outsource through third party or white label stores. The problem for vendors here was that it did not give them full control and provided the online customer with a fraction of the choice available in the high street.

The arvato RED distribution platform aims to solve these problems by providing a unified, seamless interface between content providers (such as software manufacturers) and online stores.

Manufacturers enrol their product just once to the RED distribution platform and it is immediately available through countless online shops to millions of consumers. Retailers may stock electronically distributed products from various publishers without having to sign up individually with each manufacturer or manage the downloads on their own systems.