Magnetic & Optical Media Manufacturing & Reproduction
Description
Companies in this industry manufacture optical discs, hard drive disks, and magnetic tape storage, and provide mass duplication of data on such media. Major companies include media makers CMC Magnetics (Taiwan) and Sony (Japan); US-based integrated disk drive manufacturers Seagate and Western Digital; and reproducers Arvato (Germany), Sony DADC (Japan), and Vantiva (France).
Physical media is still the strongest in the North America region accounting for about 40% of the global market, followed by the APAC region and Europe, according to Industry Arc.
The US industry, which is heavily weighted toward companies involved in media reproduction, includes 450 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $2 billion.
COMPETITIVE LANDSCAPE
Demand for magnetic and optical media manufacturing and reproduction is driven by 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 production speed, manufacturing quality, rapid technological advancements, 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: the 50 largest companies generate about 80% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include software reproducing which account for about 20%, followed by the reproduction of video recording media (20%). Other products include other electronic and electrical contract and audio discs, records, and compact, and other computers and peripheral equipment. In addition to mass duplication, companies involved in media reproduction commonly offer services such as package design and production, as well as distribution.
Common optical disc formats include compact discs (CDs), recordable compact discs (CD-Rs), rewritable compact discs (CD-RWs), digital versatile discs (DVD), recordable digital versatile discs (DVD-Rs), rewritable digital versatile discs (DVD-RWs), and Blu-ray. Optical discs are made from polycarbonate plastic which is covered with a photosensitive dye, a metallic layer, and a protective coating.
Magnetic hard drive disks are made by depositing thin layers of metallic film on a disk substrate using a technique called vacuum deposition, or sputtering. Raw materials include aluminum, glass, or ceramics for the substrate, and metals such as nickel. Because even minor impurities or contaminations can reduce yields, the process is highly precise and largely automated, necessitating major capital expenditures on both manufacturing and testing equipment. Similarly exacting, magnetic tape manufacturing involves coating a thin plastic film with a magnetic dispersion solution. Processes for replicating audio, video, and software are also precise and highly automated.
Physical media is still the strongest in the North America region accounting for about 40% of the global market, followed by the APAC region and Europe, according to Industry Arc.
The US industry, which is heavily weighted toward companies involved in media reproduction, includes 450 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $2 billion.
COMPETITIVE LANDSCAPE
Demand for magnetic and optical media manufacturing and reproduction is driven by 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 production speed, manufacturing quality, rapid technological advancements, 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: the 50 largest companies generate about 80% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include software reproducing which account for about 20%, followed by the reproduction of video recording media (20%). Other products include other electronic and electrical contract and audio discs, records, and compact, and other computers and peripheral equipment. In addition to mass duplication, companies involved in media reproduction commonly offer services such as package design and production, as well as distribution.
Common optical disc formats include compact discs (CDs), recordable compact discs (CD-Rs), rewritable compact discs (CD-RWs), digital versatile discs (DVD), recordable digital versatile discs (DVD-Rs), rewritable digital versatile discs (DVD-RWs), and Blu-ray. Optical discs are made from polycarbonate plastic which is covered with a photosensitive dye, a metallic layer, and a protective coating.
Magnetic hard drive disks are made by depositing thin layers of metallic film on a disk substrate using a technique called vacuum deposition, or sputtering. Raw materials include aluminum, glass, or ceramics for the substrate, and metals such as nickel. Because even minor impurities or contaminations can reduce yields, the process is highly precise and largely automated, necessitating major capital expenditures on both manufacturing and testing equipment. Similarly exacting, magnetic tape manufacturing involves coating a thin plastic film with a magnetic dispersion solution. Processes for replicating audio, video, and software are also precise and highly automated.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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