Taiwan’s two major optical disc manufacturers, CMC Magnetic and Ritek, have decided to boost output in response to the rapidly growing demand for recordable Blu-ray discs.

According to market surveys conducted by Recording Industry Association of Japan (RIAJ), over 113 million Blu-ray discs were shipped worldwide in 2010, and the figure is estimated to surge 83% to 207 million units in 2011 and double to 412 million units in 2013. RIAJ attributes this growing to a steadily rising penetration Blu-ray recorders and a sharp downward spiral in selling prices.

In contrast, the overall demand for DVD discs has plateaued over the past few years. RIAJ’s report shows that DVD disc sales have actually declined about 7% year-on-year to 474 million units in 2010, and are expected to slip 8% to 436 million units this year. Blu-ray popularity and video streaming services are undermining the demand for DVD media.

CMC says it will upgrade its manufacturing capability for BD 50 discs while continuing to focus on development of multi-layer technologies to boost profitability. The company reckons the products will account for 20-25% of its total disc output this year, and over 50% in 2012. (Source: CENS.com)

Story filed 10.04.11