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TDK gives up on Blu-ray

by on02 May 2013 1363 times
TDK

TDK announced withdrawal from the market of Blu-ray media by the end of March next year. Leaving this segment is part of the company's restructuring program of operations, cutting costs and relegating less profitable business department.

Falling prices of Blu-ray media have decreased profit margins for producers of the same, and TDK believes that the production of the media is no longer sufficiently profitable for the company. TDK has not decided whether to sell the production unit for Blu-ray media to another company, or simply to shut down production at the end of the first quarter next year.

Restructuring plan for the company includes laying the foundation for the growth of business and focus on more profitable segments, such as production of heads for drives and rechargeable batteries. TDK by restructuring and optimizing of businesses plans to save $82.12 billion, but the company does not specify a time frame for achieving this goal.

[Ed - This plays into what many companies are looking to do. There is more money to be made in streaming as there is nothing pyhsical to manufacture. In the next few months companies like Netflix and Hulu will beging having problems as groups like Warner Brothers, Sony and more pull their titles back in house and develop their own streaming services. This is one of the motivator for Netflix to start createing thier own content. Things are going to get interesting in the streaming market in 2H 2013...]

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Last modified on 02 May 2013
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