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Monday, December 17, 2012
CD, DVD Recordable Media Market Down

Both CD and DVD recordable media technology revenue decreased in 3Q12 from 2Q12, a report from the Santa Clara Consulting Group found.

According to the report, CD recordable media technology revenue decreased from Q2/12, changing by -5.63% in Q3/12, to $91 million. CD writer revenue was also very limited, with DVD and BD writers virtually replacing CD writers in the market.

Global CD recordable disc sales changed by -6% on a quarter-toquarter basis. CD-R discs represented 497.338 MM units of this volume and 98% of the market. Average price was relatively flat during the quarter, at $0.17. CD-RW media sales continued to be limited, representing 2% of total unit sales.

Regionally, The Americas continued to lead the market, with 49% of media units, followed by Europe?28%, other Asia/Pacific markets - 15%, and Japan - 8%.

Disc manufacturers have been phasing out production of CD-R media in response to the decline of the format. Some production lines have been shifted to countries where production costs less, like Thailand and Vietnam, but the change in total optical-disc volume has not been significant. Overall, excess capacity exists in the market. Some of the equipment has been shifted to DVD media manufacturing, while other production lines are not in operation at all.

DVD recordable technology also registered sales of $732 million in the third quarter, a change of -1%. This sales figure includes two DVD recorder segments - DVD writers (attached to PCs) and DVD video recorders (consumer devices attached to televisions) - as well as complementary media.

Revenue was influenced by a modest increase in writer unit sales and more stable pricing in the media segment in Q3. DVD recorder sales represented $596 of revenue, with media supporting the balance.

The writer segment registered a 0.25% change in unit sales during the quarter, influenced by a modest increase in production of personal computers.

Slim writers represented 78% of the unit sales in Q3, with half-high writers making up the balance.

Five primary types of media are sold into the DVD-recordable market: DVDRW, DVD-R, DVD-RAM, DVD+RW, and DVD+R. These products combined represented revenues of $136 million in Q3, with the DVD R segment (DVD+R and DVD-R) representing 97% of disc sales.

The Americas represents the largest market for media sales, with 39%, followed by Europe, with 27%; Japan, with 24%; and Asia/Pacific, with 10%.

The report added that Blu-ray recordable media is a minor factor in the market but currently offers better margins and could help the overall profitability of the optical disc business in the future.

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