DVD recordable manufacturers not to raise prices this year

June 3, 2003

Altough the demand for DVD recordable discs has
been increasing a lot this year, the three large Taiwanese manufacturers CMC,
Ritek and Prodisc have announced not to raise prices of DVD media. Prices of 4x DVD
media might even drop at the end of the year caused by demand for 8x DVD media.
8x DVD recorders should be available at that time. The companies are currently
satisfied with the margins on DVD media and demand is still growing.

Both CMC
and Ritek said they were satisfied with the current profit margins and
would not consider a price hike on their DVD products before the year-end.
Prodisc said it would follow suit on its competitors' decisions. Further
price jumps may run the risk of discouraging consumers, said the
companies, which are consistently expanding their DVD disc
capacities.

Rumors are that in the Netherlands and Belgium
there will likely be a price increase of up to 1 EURO on DVD media due to a tax
that should compensate losses of the entertaiment industry. However there has no
decision been made and it will likely be annnounced a little while before the
new tax will become active, to avoid people buying large
stocks.

Source: Digitimes.com