DVD Discs Going Up 10% Due To Cost Of Oil!




Just read this in the first pages “News” section:


Glad that I have stocked up on discs in the last couple of months-



See, Mike?

I told you there is no such thing as too much media.


Yo Jim-

Obviously - you have not spoken to my wife - eh?



Now I feel weird sending you a PM suggesting this when you had already posted a thread. Oh well. I guess I cannot read everything.


Mike… I hear ya. Sometimes we just run out of excuses.


Be serious. It’s competition and accelerating technology developments and ditribution that drive prices downward forever. It’s hardly the first time that oil prices soared. I live in South Korea where government and people are extremely sensitive to oil price changes. 1 liter gasoline here costs about US$1.5. Average E-mart and MacDonald employees here earn US$3 per hour and many more earn even less than that.

Whether some websites report whatever’s going to drive DVD media cost 10% or 20% up, they are going to become cheaper and cheaper unless the 1,000 largest industrial cities of East Asia from Tokyo to Guangjou are somehow burned in one day. Track down the first sources of those news. They are all media manufacturers that are concerned about their stock prices. Independent market researchers will say very differently.

It’s good for you to read news frequently but it’s not nice to tell others to “stock up” DVD media.


However, reports from Verbatim that they have discontinued 8X is a reason to stock up.

Besides, oil just topped $58.47. Everything is going to cost more.


Even Taiwanese media manufacturers of the first tier group gave up 8x DVD media long ago. Some of them still probably produce 8x media but they don’t care much about them.

Oil price alone isn’t enough to stop it. However, panic would help manufacturers to sell at higher prices for a few weeks, but not for very long.


Source of the news from DigiTimes.com, the Taiwan industry’s news media translated for the English world.

DVD disc prices set to jump 10%
Jimmy Hsu, Taipei; Adam Hwang, DigiTimes.com [Thursday 16 June 2005]

Leading manufacturers of optical discs in Taiwan plan to raise quotations for DVD+R/-R discs by an average of 10% next quarter, though any increase in their gross margins will be countered by the increasing cost of optical-grade polycarbonate (PC) to US$3.5 per kilogram (kg), according to sources at the makers.

After hovering for several months at a record-high price of US$3.5/kg, the price of optical-grade PC dropped to US$3.2-3.3/kg in April of this year. However, the price has recently pushed back up to US$3.5/kg, as Benzene, an important material for PC production, has seen its price jump on rising oil prices, the sources explained.

In related news, optical-disc makers CMC Magnetics, Prodisc Technology, Gigastorage and Lead Data all recently stated that they will not deal out any dividends for their 2004 operation.

That’s what Ritek, CMC, Prodisc, Gigastorage, Lead Data, and some other smaller Taiwanese media manufacturers want DigiTimes.com to translate in English to the English news media. I’ve seen such lines on DigiTimes very many times. Read the article over and over carefully and wonder why they had to announce such plans again now. It’s illegal in US and Europe for companies in the same industry to fix prices and increase at once. It’s not only legal but also supported by the government and media in Taiwan and South Korea. They can do that as long as South Korean and Japanese media manufacturers cannot compete easily but for how long?