Replicators lose significant revenue, despite Blu-ray increase.
Cinram, DVD and Blu-ray disc replicators, announced an 18% decrease in revenue this year, blaming the loss primarily on lower DVD replication volumes, though Blu-ray production did increase. A fairly telling indicator of the industry as a whole, if the replicators are making less of something, it means companies are expecting to sell less. After all, supply needs to adjust to fit demand.
According to their Q2 2009 financial statement, the company dropped from $386 million in revenue in Q2 last year to just over $300 million this year. All in all, Cinram posted a loss of $787 thousand for the quarter, a vast improvement over the previous year’s near $7.1 million.
While Blu-ray production increased according to Cinram, the modest boost of Blu-ray didn’t have much of an effect on profits. While Blu-ray proceeds increased from $5.1 million to $5.5 million, the company produced 22 million less standard DVDs.