International retail prices of blank 4-6x DVD+R/-R DL discs have dropped by about 50% during the first half of 2008 to around US$1, spurring a fast growth in global demand.

As the only two Taiwan-based makers of such discs, Ritek and CMC Magnetics are benefiting from the market surge, according to industry sources in Taiwan.

Japan-based Mitsubishi Kagaku Media (MKM) and Hitachi Maxell originally dominated the global production of such discs with relatively high OEM quotes, but Ritek, CMC and India-based Moser Baer India (MBI) entered the segment bringing price-cut competition, the sources indicated.

As a result, OEM quotes have continually fallen and so have retail prices.

Price drops have resulted in increasing global demand for 4-6x DVD+R/-R DL discs which are mainly used to backup Xbox 360 games and DVD movie discs, the sources indicated.

As blank Blu-ray Disc (BD)-R or BD-RE discs are as expensive as US$15-20, DVD+R/-R DL can maintain its market niche of backup use for quite a long time, the sources pointed out.

According to Japan-based consulting company BOC Info.net, the global demand for DVD+R/-R DL discs is forecast at 150 million discs in 2008 and 300 million units in 2009, the sources noted.

Based on BOC statistics, MKM and Ritek each had a global market share of 26.9% in the first quarter of 2008, followed by MBI with 17% and CMC with 12%, the sources added.

Story source: digitimes.com