Mitsubishi Chemical will stop production of Blu-ray
Discs and DVDs, according to a report in Japanese
newspaper Asahi Shimbun.
According to the paper, the move comes as the company
sees declining profitability due to competition with
low-priced BDs and DVDs manufactured outside Japan.
Blu-ray sales are not compensating for the declining
The maker of the Verbatim-branded media outsource disc
production to Taiwanese and Indian makers, according
to the report. This will lead to Taiyo Yuden as the
sole Japanese manufacturer of DVDs.
According to the Japan Recording-Media Industries
Association, says the report, global demand for DVDs,
which peaked in fiscal 2007 at about 6 billion units,
and has steadily declined since then. Sales of DVDs
are forecast to drop to 3.7 billion units in fiscal
2013. In the meantime, the retail price for DVDs
virtually halved between 2006 and 2011. Blu-ray sales
have not made up for the decline, says Asahi Shimbun.
Mitsubishi Kagaku Media (MKM) reaffirmed the company's commitment in the production of high-quality DVD and Blu-ray disc media. Read more here