Between weak demand for Blu-ray media and the high costs involved between royalty charges and production equipment, CMC Magnetics has decided to hold off Blu-ray disc production until the global Blu-ray disc market takes off, according to this DigiTimes Systems source. In the meantime, CMC will invest in Blu-ray recreation and development to improve its technological capabilities according to the company chairman, Robert Wong. He predicts it will take 2 to 3 years for the global DB market to take off.
While Blu-ray disc production equipment is very expensive, the high royalties makes matters worse, particularly since there are as many as 21 owners of Blu-ray Disc patents who plan claiming royalty charges. Taiwan-based makers need to negotiate royalty rates with the individual patent holders, which mean that between all these royalty charges, the investment cost of production equipment and low demand, this is currently keeping a high price tag on BD-R and BD-RE blank media by the time it reaches the shops.
Thanks to DamnedIfIknow for letting us know about this news and making the following comment: "Since as many as 21 owners of BD patents plan to claim royalty charges, there are many problems that need to be solved while charge rates are expected to be high . . ." WOW, I didn't see that coming. 🙂
