Contrary to earlier reports, CMC Magnetics is holding off on commercial production of BD-R and BD-RE media. According to company
chairman, Robert Wong, the company will invest in BD R&D until the demand for blank BD media justifies the high cost of equipment and
royalties.
CMC Magnetics will not start commercial production of blank Blu-ray Disc (BD) discs until the global BD market
emerges to some extent, and will instead invest in BD R&D to cultivate its technological capabilities in the interim, according to
company chairman, Robert Wong.
Since as many as 21 owners of BD patents plan to claim royalty charges, there are many problems
that need to be solved while charge rates are expected to be high, Wong pointed out. In addition, production equipment for BD discs is
currently very expensive. The cost of equipment and royalties, together with the small demand render BD investment unfeasible at the
moment, which is why CMC will not to step into production of BD-R (recordable, write once) and BD-RE (rewritable) discs for the time
being, Wong explained.
Wong also predicts that, due partly to high royalty rates, the BD market will not take off for
another 2 to 3 years. If you'd like to read more, head on over to DigiTimes.