Companies in this industry manufacture optical discs, hard drive disks, and magnetic tape storage. Major companies include CMC Magnetics and RITEK (Taiwan); Maxell Holdings and Sony (Japan); and Moser Baer (India).
Demand for magnetic and optical media is driven by ever-expanding data storage needs of businesses and consumers. However, demand for particular storage formats can decline rapidly as new technologies are developed. The profitability of individual companies depends on manufacturing efficiency, rapid technological advancements, effective marketing, and efficient distribution. Large companies enjoy economies of scale in manufacturing and distribution. Small companies can compete effectively by developing new products. The US industry is highly concentrated.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include recordable, rewritable, and blank optical discs; hard drive disks; and magnetic tape storage, including cartridges, blank audio and video tapes, and floppy disks.