Technicolor Disc Replication Produced 11% Fewer DVDs, Blu-rays in First Half
Technicolor’s disc-replication business produced 472 million DVDs and Blu-rays in first-half 2018, down 11 percent from the 529 million manufactured in the same period a year earlier, said the company. Technicolor, as a top global replicator, often serves as a…
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bellwether of declining demand for physical media. Unit volume of DVDs produced declined 18 percent to 338 million discs, while Blu-ray unit volume increased 12 percent to 134 million discs. “Obviously, the Blu-ray volume does not compensate” for the decline in DVD demand, “but as all of you know, Blu-ray from a profitability-efficiency standpoint is a lot more attractive for the bottom line of the company,” said CEO Frederic Rose on an earnings call, also Tuesday. In Q2, Technicolor completed the “onboarding” of its disc-replication outsourcing agreement with Sony Digital Audio Disc Corp. in the U.S. and Australia (see 1802220009), said Rose. “We are now starting the third quarter fully operational on behalf of Sony.” A high priority in the disc-replication business “from now on” will be on implementing new customer contracts and “renegotiating” renewals exclusively built on “volume- and activity-based pricing structures,” said Rose. That will protect Technicolor from assuming “the volume risks of what happens in the market” and ensures the company “maintains its profitability,” he said.