Optical disc (CD, DVD, Blu-ray) maker CMC Magnetics expects its third-quarter revenues to grow 10%. CMC also expects to turn a profit as second-tier disc makers are gradually phasing out of the optical disc market. First-tier manufacturers like Ritek and CMC have reduced their disc capacity by 30-40%, allowing the supply of optical discs to decrease which has helped to boost optical disc prices.
Optical disc prices have risen by as much as 40% since February of 2011. (Source: DigiTimes)
Our take on the CD-r and DVD-r market is that these increase prices are here to stay for at least the next 2 to 3 quarters as oil prices remain higher, and poly carbonate supplies remain tight. We are seeing these increase prices being passed on to users of CD-r and DVD-r media, as well as customers of disc duplication and printing services.