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CD and DVD market shrinking – but not very fast

Posted at 17 December 2012 18:23 CEST by Jan Willem Aldershoff

The Santa Clara Consulting Group has released a report on the current optical disc market. While optical discs are still used they are often replaced with other storage technology or other ways of accessing content, such as streaming video and music. The oldest recordable optical disc, the Compact Disc Recordable (CD-R) saw a decrease in revenue of nearly 6% in the third quarter of 2012 compared to the previous quarter of 2012. The entire market is good for about $90 million.

Also CD burners were hardly sold and have become pretty much obsolete as the technology is also build in to DVD and Blu-ray writers. There were nearly 500.000 million CD-Rs sold, which is about 98% of the CD recordable market, only 2% of the recordable CDs were CD Rewritable discs.

Of all discs sold, the most are in North and South America which account for 49% of the sales, Europe takes up 28% of the market, Asia 15% and Japan 8%.

DVD recordable technology based products are also slightly sold less, but sales only went down 1% in the third quarter compared to the second quarter of 2012 with a total sales volume of $732 million. In this number both PC recorders and VCRs with optical disc drives. Together they made up about $600 million of the revenue, with the remaining $132 million was due to the sales of recordable media.

There were 0.25% more burners sold, mainly caused by an increase in production of PCs. Of the PC drives, 78% is slim line and the rest half height.  Of the drives sold almost all of them support all formats (CD, DVD-R/W, DVD+R/W, DVD-RAM) but the majority (97%) of the discs sold were DVD-R and DVD+R discs.

Most of the discs are sold in North and South America, they represent 39% of the sales, Europe takes about 27% of the discs, Japan 24% and the rest of Asia 10%

Blu-ray recordable discs are only a small part of the market and unfortunately the Santa Clara Consulting Group did not disclose any numbers on them, but does  mention that these discs offer better margins which help the profitability of the optical disc business in the coming time.

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There are 12 comments

tmc8080
MyCE Resident
Posted on: 17 Dec 12 20:24
    There are some important ideas to glean from this trend..

    1. The cost of a dedicated blu ray burner is about $1k+ cost of a blu ray reader? $50.. see a problem there?

    2. Competition from more cost effective media are making optical media obsolete-- what you see now are blu ray players with hard drives, flash slots and network capability which is more consumer friendly due to blu ray's insistance upon HDCP standard...

    3. cds are at most 800mb, dvd.. 8.5gb... Flash media is measured in the tens of gigabytes and hard drives? Terabytes!!

    32gb usb flash drives are now about $20 and blu ray discs when they came out in single packs were about $10 - $20..
    DrageMester
    Retired Moderator
    Posted on: 17 Dec 12 23:40
      There's something wrong with the math or the numbers.
      Example:

      Quote:
      The entire market is good for about $90 million.
      ...
      There were nearly 500.000 million CD-Rs sold
      So the average selling price for a CD-R is 0.00018 cents? I don't think so.
      alan1476
      Senior Moderator, Software Editor and Head of Promotions
      Posted on: 17 Dec 12 23:49
        Quote:
        Originally Posted by DrageMester
        There's something wrong with the math or the numbers.
        Example:

        So the average selling price for a CD-R is 0.00018 cents? I don't think so.
        I'll take a spindle for that price. Only 25 though, Im old and retired. LOL
        debro
        Blown to smitherines
        Posted on: 18 Dec 12 03:22
          Quote:
          Originally Posted by DrageMester
          There's something wrong with the math or the numbers.
          Example:

          Quote:
          The entire market is good for about $90 million.
          ...
          There were nearly 500.000 million CD-Rs sold
          So the average selling price for a CD-R is 0.00018 cents? I don't think so.
          Seems like what they are worth these days.
          I occasionally go back to my archaic spools of cdrs, when I find a miniature linux iso, and all my usb devices are in use and it's more hassle to clear them off than just burn a cd...
          DoMiN8ToR
          Management
          Posted on: 18 Dec 12 08:52
            I think you're right Drage. The report says 500.000 million, but it's probably 500 million? That would make 18 cents per CD-R, that sounds more reasonable...
            DrageMester
            Retired Moderator
            Posted on: 18 Dec 12 18:03
              Quote:
              Originally Posted by DrageMester
              There's something wrong with the math or the numbers.
              ...
              So the average selling price for a CD-R is 0.00018 cents? I don't think so.
              My brain doesn't work - that would be dollars, not cents.

              Quote:
              Originally Posted by DoMiN8ToR
              That would make 18 cents per CD-R, that sounds more reasonable...
              Yep, that does sound more reasonable.
              cholla
              MyCE Resident
              Posted on: 18 Dec 12 18:40
                Quote:
                Originally Posted by DrageMester
                There's something wrong with the math or the numbers.
                Example:

                So the average selling price for a CD-R is 0.00018 cents? I don't think so.
                That would make the worlds cheapest coasters.
                alan1476
                Senior Moderator, Software Editor and Head of Promotions
                Posted on: 18 Dec 12 19:21
                  If it weren't for the environmental issues I would use them as skeets.
                  tmc8080
                  MyCE Resident
                  Posted on: 21 Dec 12 00:35
                    I'd just be happy with decent bd-r's 25 pk for $10 25qty 50gb-dual layer for $24.99
                    :-)
                    kenshiro666
                    New Member
                    Posted on: 12 Feb 13 10:51
                      piooner blu-ray BD-r is future
                      zbart
                      New Member
                      Posted on: 01 Mar 13 18:38
                        what I'm shocked by is that people still buy CD-only burners. really? I can understand if you bought CDs to play in some old discman/car audio, but who would buy a CD-only burner?

                        well, let's hope the trend this year is toward much cheaper BD-Rs. Still over $1 for decent discs here in our local market.

                        I'm much more worried about this trend,
                        Recordable discs more expensive in 2013 – 50% increase predicted
                        http://www.myce.com/news/recordable-...=related_posts
                        ChristineBCW
                        MyCE Die Hard
                        Posted on: 01 Mar 13 22:08
                          ZBart, yes, especially with the elimination of most DVD-R Burners (or at least the good ones) in favor of the BD-Burners. Strange to see any CD-R Burners available, although we'd never mind picking up a few of those old Yamaha Masters.

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