Many small and midsized disc duplicators invested their time in HD DVD for all the obvious reasons. To make HD DVDs duplicators only had to make a few adjustments to their existing DVD duplication lines, but Sony's Blu-ray Discs require new equipment. But what should they do? Invest in a new line, or wait and see?
"By the time we get in the fourth quarter of this year, there will be a problem with capacity," said Jim Bottoms, co-managing director of research firm Understanding & Solutions to Home Media Magazine earlier this month. The research firm says that it will take an investment of $250 million and 80 new production lines to meet the demand of both Blu-ray movies, as PS3 games.
There are several things that create a tough climate for disc duplicators, and make the decision to go 'blu' even harder. In the first place AACS encryption, mastering, authoring, duplication and packaging make costs go up, which makes the risk larger for independents. Secondly, it's an expensive process. Home Media Magazine shows that some duplicators pay $2.7 million for a 50GB BD line.
What do you think, should the duplicators invest? There is a high risk and the initial investment is enormous. Forecasts indicate that Blu-ray will become popular in the future so that might be a reason to step in now.
