Philips makes large cuts in CD-RW, DVD royalties for CMC, Ritek

vbimport

#1

Philips makes large cuts in CD-RW, DVD royalties for CMC, Ritek
-Digitimes Original date: 2010/1/4
“Royal Philips Electronics has reduced royalty charges for CD-RW, DVD+R, DVD-R, DVD+RW and DVD-RW optical disc formats by 71.4-72.2% from US$0.035-0.036 per disc originally to US$0.01 for CMC Magnetics and Ritek, Taiwan’s two largest optical disc makers. The new licensing contracts are effective for 10 years from December 31, 2009 to December 30, 2019, according to industry sources in Taiwan. Both CMC and Ritek confirmed the new licensing but did not confirm the rates.”

Let’s hope this gets passed on to retail pricing.


#3

this is a signal that small capacity media is becoming less relevant in an era of 2.5tb+ capcity hard drives, hd media and uncompressed (lossless) formats. maybe after 2019, philips can do away with the royalty altogether for the above mentioned formats.