The optical storage market is shrinking, and the legendary brand Verbatim is sold to a Taiwanese company

Source:   Editor: admin Update Time :2019-07-02
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Is there anyone still saving data on the CD? Now the storage price is low, many notebooks directly cancel the built-in optical drive, and few people should use the CD to save the data. The other big market for Blue-ray Discs —— the game disc market has gradually been replaced by games which can be downloaded. Many console games have already been released in only digital versions. Microsoft even launched the Xbox One S without the optical drive version. In this context, the days of veteran disc manufacturers are very hard. Recently, Mitsubishi Chemical Media Co., Ltd. (Mitsubishi Chemical Co., Ltd.) announced that it will sold its famous disc manufacturer Verbatim to Taiwan's CMC Magnetics at a price of 32 million dollars.



Verbatim blue-ray disc


Verbatim was a floppy disk manufacturer. In the 1990s, as optical discs became popular, Verbatim was well-known in the world for its transformation into optical storage media.It has always played the role of a leader especially in the development of CD-R, CD-RW and DVD technologies and is the most famous brand among several major optical storage media manufacturers. Its name is a symbol of high-quality optical discs and has maintained its position as a market leader since 2005. In addition to CDs, Verbatim also produces storage devices such as USB flash drives and SD cards, but it is not very famous for these products. This deal also illustrates the shrink of optical storage market, with some legendary brands such as Taiyo Yuden and TDK, which have begun to consider exiting the optical storage market in the next decade.
CMC Magnetics is one of the largest optical disc manufacturers in the world, with its main business in mainland China, Taiwan, Thailand and the United States. This company mainly provides OEM services. For this sale, CMC Magnetics will receive all of Verbatim's assets, including intangible assets such as patents, technology and sales networks. However, CMC has already been producing CDs with the Verbatim logo beforehand, so the change of ownership of the company will not affect the quality of its product, and may even lead to a price reduction of Blu-ray Disc. At the same time, with the patent from Verbatim, CMC can also produce CDs of its own brand without paying royalties to Verbatim.

 

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