CD/DVD Recordable Media Market Down as Expected

CD Recordable Media Revenue
Down 6% Quarterly at $91 million

CD recordable media technology revenue decreased from 2Q12, changing by -5.63% in 3Q12, to $91 million, according to CD Tracker, a report from the Santa Clara Consulting Group.

CD writer revenue was 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 to quarter basis. CD-R discs represented 497.338 million 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 AsiaPac 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.

$732 Million in Sales for DVD Recorder/Writer
and Media Markets in 3Q12, Down 1%

DVD recordable technology registered sales of $732 million in 3Q12, a change of -1%, according to DVD Tracker, a report from the Santa Clara Consulting Group.

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 3Q12. DVD recorder sales represented $596 million 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 PCs.

Slim writers represented 78% of the unit sales in 3Q12, with half-high writers making up the balance. Most manufacturers include RAM (SuperMulti) in their multifunction writers. The SuperMulti devices allow wide-scale compatibility with all media formats and are widely accepted in the PC OEM and branded segments of the market.

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 3Q12, with the DVDR 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 AsiaPac, with 10%.

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.