CD-R/RW Media Market
CD-R/RW writer and CD Combo sales largely disappeared in 2010, with inexpensive DVD writers taking their place. As a result, most users and vendors have moved to DVD writers.
Disc media declined, with the market representing 3.329 billion units in 2010. CDR disc sales continued to be below global volume of DVD discs in 2010.
Revenues were influenced by declining volume, with average unit pricing stabilizing, Entertainment levies in Europe had a major influence on geographic sales of disc media, SCCG said.
High-levy countries such as France, Italy, Sweden, Denmark, Austria, Spain, and Hungary saw their official markets decline because of this trend. Countries with low levies, like Germany, the United Kingdom, Slovakia, Monaco, San Marino, Andorra, and Luxembourg benefited from this trend, with traders shipping discs to high-levy markets, the research firm said.
SCCG estimates that there is 31% more supply than demand for CD-R discs. Manufacturers continue to adjust production, and much of this excess capacity is not operational. For manufacturers paying royalties to Philips and other companies, profits are limited at best. The firm expects that manufacturers will continue to decrease CD-R capacity in 2011, hoping that pricing will improve to allow profitability.
Taiwan dominates manufacturing for CD-R discs, now representing 64% of global capacity. India is an important participant, with Moser Baer maintaining an additional 20%.
Disc volume is influenced by the installed base of optical writers that burn CDs. This includes CD writers, CD Combo drives, DVD writers, and some of the BD writers. The current installed base of optical devices supporting CD writing was 610 million in 2010 and is expected to be 517 million by 2015.
DVD Media Market
DVD recordable technology registered sales of $5.13 billion in calendar-year 2010, SCCG found. This figure is down from $6.25 billion of revenue in 2009. DVD recorder sales influenced this decline, with unit sales changing by -2%, to 144.238 million units.
Disc media sales changed by -4%, to 4.116 billion units.
DVD writers were the most important hardware category, with revenue of $3.43 billion.
DVD video recorders, while much smaller in volume, had unit pricing more than eight times that of DVD writers, with revenue of $0.89 billion. In the writer segment, the market is almost exclusively one of two formats: DVD Multi (with DVD-RAM capability), with 84.57% of the market last year, and Dual DVD (±), with 15.43%.
In the DVD disc media business, revenues totaled $805 million in 2010. DVD-R was the most significant recordable DVD format in 2010, with 68% of DVD recordable disc sales, followed by DVD+R, 29%; DVD-RW, 2%; DVD+RW, 1%; and DVD-RAM, less than 1%.
DVD disc media is produced primarily in Asia, with Japan and Taiwan maintaining a large share of this business. Ritek, CMC, and Prodisc, all based in Taiwan, are acting as subcontractors for a number of international brands; Taiyo Yuden has manufacturing in Japan; and MCC/Verbatim continues to manufacture DVD discs, with production in Singapore. Moser Baer maintains a significant manufacturing presence for DVD recordable media in its India facilities. There are smaller regional players that have a minor influence on this market.
DVD recordable technology registered sales of $1.13 billion in Q4, a change of -3% from the previous quarter. DVD writers had sales of $813 million and 34.122 million units. DVD video recorders had sales of $129 million and 0.597 million units. DVD disc media in Q4 represented revenues of $189 million. DVD R media (DVD+R and DVD-R) had sales of 981.427 million units, while the DVD RW segment (DVD+RW, DVD-RW, and DVD-RAM) had sales of 33.890 million units for the quarter.
Entertainment levies in Europe continue to have a major impact on country sales of disc media. High-levy countries such as France, Italy, Sweden, Denmark, Austria, Spain, and Hungary have seen their official markets decline because of this trend.
Countries with low levies like Germany, the United Kingdom, Luxembourg, Andorra, Slovakia, Monaco, and San Marino export to these countries to circumvent the levies.