Prodisc continues optical disc business

Prodisc has announced that they will continue to produce and sell optical media, contrary to earlier reports, which stated that Prodisc would be exiting the market due to financial troubles.

"Prodisc has invested more than NT$10 billion (about US$300 million) in production equipment of blank CD-R, DVD+/-R discs and has maintained a steady client base consisting of international vendors and overseas retail channels, the reason for not quitting production, Lin explained." – Digitimes

Prodisc has seen rough times lately due to an extremely competitive recordable disc supplier market, which has led to a sharp decline in profit margins. The company is also in dispute with Phillips over royalty payments. Phillips has initiated numerous court actions against Prodisc, in an attempt to force the company to finally pay royalties on CDR and DVDR technology patents that are owned by Phillips.

I find it good news that the 4th largest recordable disc manufacturer will continue to supply optical media to the world. While Prodisc might not be the top choice of some media enthusiasts, increased competition and choice is always a good thing. If Prodisc were to exit the market, optical media prices would most likely rise.