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Monday, January 23, 2012
Mitsubishi To Stop Optical Disc Production: report


Mitsubishi Chemical will stop production of Blu-ray Discs and DVDs, according to a report in Japanese newspaper Asahi Shimbun.

According to the paper, the move comes as the company sees declining profitability due to competition with low-priced BDs and DVDs manufactured outside Japan. Blu-ray sales are not compensating for the declining DVD market.

The maker of the Verbatim-branded media outsource disc production to Taiwanese and Indian makers, according to the report. This will lead to Taiyo Yuden as the sole Japanese manufacturer of DVDs.

According to the Japan Recording-Media Industries Association, says the report, global demand for DVDs, which peaked in fiscal 2007 at about 6 billion units, and has steadily declined since then. Sales of DVDs are forecast to drop to 3.7 billion units in fiscal 2013. In the meantime, the retail price for DVDs virtually halved between 2006 and 2011. Blu-ray sales have not made up for the decline, says Asahi Shimbun.

Update
Mitsubishi Kagaku Media (MKM) reaffirmed the company's commitment in the production of high-quality DVD and Blu-ray disc media. Read more here.


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