Unit Volume in Technicolor Disc Business Fell 13% in First Half on ‘Strong’ DVD Declines
First-half unit volume declined 13 percent in Technicolor’s disc-replication business, and revenue fell 9 percent, said CEO Frederic Rose Wednesday. The first half had “two different trends” in the “very strong declines” in standard-definition DVDs, coupled with “very strong growth”…
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in Blu-ray, he said. “Obviously, the Blu-ray volume does not compensate” for the decline in standard-definition, “but Blu-ray from a profitability efficiency standpoint is a lot more interesting to the bottom line,” he said. Technicolor finished the “onboarding” of Sony’s outsourced replication business in the U.S. and Australia in Q2, he said. The business became “fully operational” under Technicolor’s watch at the start of Q3, said Rose. “All contract renewals moving forward” in the disc business will be “implemented only on volume- and activity-based pricing structures, thereby ensuring that Technicolor does not assume the volume risks of what happens in the market,” he said.