Blu-ray Replication Capacity Growth Trends

[Elee s]

Originally Posted by Kosty

There is a difference between the industrial manufacturers of the equipment and the actual replicators.

He was talking about singulus, so I think he was talking about the manufacturers of replicating equipment I dont know.

He does have a valid point that at the moment Sony DADC has a dominant marketshare but the studios have ongoing relationships with large replicators like Cinram and Technicolor. The tier below that replicators have only just begun to buy replication lines or Blu-ray duplication equipment and currently do not do a lot of small replication runs. Sony DADC indeed has done the bulk of Blu-ray replication in the USA and Europe. Sony DADC USA also has a lot of the current capacity for Blu-ray DB50 replication.

Well the market has changed also. Sony, cinram, and technicolor carry the bulk of orders right now cause really.. apart from HD movies from the main studios and PS3 games, where else is there a demand for blu ray?

[Kosty]

Well the market has changed also. Sony, cinram, and technicolor carry the bulk of orders right now cause really.. apart from HD movies from the main studios and PS3 games, where else is there a demand for blu ray?

Exactly right. There at this moment is only limited demand for Blu-ray production from small studios and content holders and from corporate or promotional usage.

Any demand for that can be brokered and actually outsourced to Technicolor Cinram or Sony DADC here in the USA or Sony DADC in Europe. Not a lot of extra demand yet and the biggest noise is from small European replicators who are asking for government assistance or protection during these stressful economic times.

If Blu-ray continues to grow, demand for Blu-ray replication equipment will also in the next few years and Sony DADC having excess Blu-ray dual layer production capacity is a industrial market concern and its not a consumer issue., So is the fact that Sony DADC has spent millions and probably billions in building up that capability and in refining Blu-ray production capability and improving yields and costs. Its a benefit to consumers even if Sony has paid for it all in hope of future profits or royalty streams.

[Kosty]

Originally Posted by mikemorel
The days of the independent replicator are rapidly dwindling. Sony DADC is calling all the shots.

I think he meant not the equipment manufacturer but the replication facility which would actually use the equipment to produce CDs DVDs or Blu-ray discs for content providers.

I agree thats a tough industry to be in and Sony DADC has dominant capacity there as they were willing to invest the month years ago to build that capacity up.

[DieWahrheit]

Originally Posted by Sbert

Yo kosty, my disc is made in mexico (tf2 disc).

So there must be some replicators in mexico unless of course they are lying, which is a possibility.

Hi !
Technicolor Mexico!

SeeYa
DieWahrheit

[DieWahrheit]

Originally Posted by Kosty

Exactly right. There at this moment is only limited demand for Blu-ray production from small studios and content holders and from corporate or promotional usage.

Any demand for that can be brokered and actually outsourced to Technicolor Cinram or Sony DADC here in the USA or Sony DADC in Europe. Not a lot of extra demand yet and the biggest noise is from small European replicators who are asking for government assistance or protection during these stressful economic times.

If Blu-ray continues to grow, demand for Blu-ray replication equipment will also in the next few years and Sony DADC having excess Blu-ray dual layer production capacity is a industrial market concern and its not a consumer issue., So is the fact that Sony DADC has spent millions and probably billions in building up that capability and in refining Blu-ray production capability and improving yields and costs. Its a benefit to consumers even if Sony has paid for it all in hope of future profits or royalty streams.

U.S. DOJ Investigation of Sony Optical Disc Drive Business
Posted Oct 26, 2009


Sony Corporation said today that its U.S. subsidiary, Sony Optiarc America Inc., has received a subpoena from the U.S. Department of Justice (DOJ) Antitrust Division seeking information about its optical disc drive business. Sony understands that the DOJ and agencies outside the United States are investigating competition in optical disk drives. Sony intends to cooperate fully with the DOJ and other agencies in this inquiry.

Quelle: http://www.emedialive.com/Articles/R...rticleID=14900


Do You guess what´s the next investigation of SONYDADC?


SeeYa
DieWahrheit

[zombieflanders]

Originally Posted by DieWahrheit

Do You guess what´s the next investigation of SONYDADC?

Since the entire industry, not just Sony, was included in this investigation, not really anything.

[GizmoDVD]

Originally Posted by DieWahrheit

Do You guess what´s the next investigation of SONYDADC?

For killing puppies and kittens?

[Kosty]

... in blenders...

[GizmoDVD]

Originally Posted by Kosty

... in blenders...

Will it blend? No

[mikemorel]

Cinram Q3 Revenue, Profits Down Due To DVD Decline

Home video revenue fell 7% for the quarter, to $276.7 million from $298.4 million in the third quarter of 2008. Blu-ray Disc revenue increased to $4.7 million, from $2.3 million in Q3 2008.

Unfortunately for Cinram, that $4.7 million in blu-ray revenue is a DECLINE from $5.5 million in Q2. In other words, Cinram went from making a very small amount of blu-ray discs in Q2, to less than that in Q3.

Cinram Reports 2009 Second Quarter Results

How many blu-ray replication lines does it take to manufacture, package and deliver $4.7 million worth of blu-ray discs in 3 months - One or Two?

[zerosaiyaman]

Originally Posted by mikemorel

Cinram Q3 Revenue, Profits Down Due To DVD Decline

Unfortunately for Cinram, that $4.7 million in blu-ray revenue is a DECLINE from $5.5 million in Q2. In other words, Cinram went from making a very small amount of blu-ray discs in Q2, to less than that in Q3.

Cinram Reports 2009 Second Quarter Results

How many blu-ray replication lines does it take to manufacture, package and deliver $4.7 million worth of blu-ray discs in 3 months - One or Two?

Errr, ok? I'm not sure what you are trying to say. All their profits in all areas, from CD to Video Games, fell pretty substantially in 2009 from 2008, except Blu-ray which doubled. That's pretty interesting, I'd think :P.

Also notice that the 2008 second quarter for Blu-ray for them was 5.1 million, so their 2008 3Q was way lower than the 2008 2Q. Then, why's that a surprise for 2009 to do the same, except the drop from 2Q to 3Q was a lot less in 2009.

[Kosty]

So year to year comparisons for both 2Q and the 3Q for Cinram for Blu-ray replication was way up.

Whats the problem again?

[Kosty]

Hmm. always useful to look at the entire article to see what was left out.

OK, Blu-ray revenues doubled for Cinram year to year during the same seasonal period making up a portion of DVDs decline.

But Lionsgate made a extended commitment to use Cinram to replicate DVDs and Blu-ray Discs for another next three years. Guess they assume neither DVD nor Blu-ray will completely die off for at least another three years then.

Cinram Q3 Revenue, Profits Down Due To DVD Decline


By : Chris Tribbey | Posted: 10 Nov 2009
ctribbey@questex.com


For the three months ended Sept. 30, Toronto-based replicator Cinram International on Nov. 10 reported a 15% decline in revenue year-over-year.

Lower demand and a lower average selling price of DVD resulted in the drop in profit, which was nearly $14 million for the quarter, the company said. Home video revenue fell 7% for the quarter, to $276.7 million from $298.4 million in the third quarter of 2008.

Blu-ray Disc revenue increased to $4.7 million, from $2.3 million in Q3 2008.

The company’s third quarter revenue was $351.2 million, down from $411.7 million from the same period in 2008.

In September, Cinram signed a three-year extension of its replication agreement with Lionsgate.

http://www.homemediamagazine.com/rep...-decline-17551

[Kosty]

Second quarter Home Video revenue (which includes replication and distribution of DVDs and high-definition discs) was down 18 per cent to $224.0 million from $272.3 million in the 2008 second quarter due to lower DVD replication volumes in North America combined with lower selling prices globally. Cinram replicated 224 million DVDs in the second quarter of 2009, compared to 246 million units in 2008. High-definition disc replication revenue increased to $5.5 million in the second quarter of 2009 from $5.1 million in the comparable 2008 period.

Off that investor report they still replicated 224 million DVDs in the 2Q 2009 which hardly sounds like DVD itself was dead either.

http://investors.cinram.com/NewsRele...em.aspx?id=142

So its $5.1 M in 2Q versus a preliminary $4.7 M in revenue for that replicator. Could be either lower negotiated pricing or it could mean some seasonal variation but either way the year to year quarterly growth comparisons are way up.

Overall they are still on track for getting over $1 Billion in revenues for making shiny optical discs in 2009.

Whats the problem again?

[vinnie97]

Originally Posted by Kosty

Whats the problem again?

The underlying problem for a few: HD DVD died