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Disctronics acquires LaserVideo

Library Systems Newsletter [January 1988]

Disctronics Ltd., an Australian-British optical disc manufacturer has acquired LaserVideo, Inc., the largest U.S.-owned firm in the industry, for $55.5 million in cash and stocks. The acquisition will make Disctronics the third largest producer of optical discs in the world after Philips DuPont Optical and Sony. LaserVideo's work in mastering of videodisc, compact disc, and CD-ROM dates from 1979. In the U.S. it is the second largest producer. The company's Anaheim plant has already begun premastering and pressing video compact discs (CDV). It also provides custom mastering services for write-once (WORM) and erasable optical digital discs. Its new Huntsville plant, which produces 25 million discs a year, has a potential capacity of 50 million discs a year.

The acquisition puts more than 75 percent of the world's optical disc manufacturing in the hands of three companies. It also comes at a time when manufacturing capacity in the U.S. has finally exceeded demand--capacity for 1988 is 250 million units, while projected sales are just 150 million. The big question now is whether competition will force down prices. The current price for compact disc mastering and pressing is 300 percent of that for LP phonodiscs, while manufacturing costs are only 80 percent greater. Should price competition break out, the price of an audio could drop by $3.00 or more and CD-ROM manufacturing prices could drop from the present $3,000 per master and $20 per disc to $2,500 and $15 or less, respectively.

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Publication Year:1988
Type of Material:Article
Language English
Published in: Library Systems Newsletter
Publication Info:Volume 8 Number 01
Issue:January 1988
Page(s):6-7
Publisher:American Library Association
Place of Publication:Chicago, IL
Notes:Howard S. White, Editor-in-Chief; Richard W. Boss, Contributing Editor
Subject: Optical storage technology
ISSN:0277-0288
Record Number:4421
Last Update:2022-09-14 17:00:18
Date Created:0000-00-00 00:00:00
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