CD Manufacturing, from what I can gather, is very lucrative.
They take a physical master cd "mold", that already has all the pits (or bumps)in it. They make one plastic side, a copy of the master, and then put molten aluminum on it, and "spin" it over over the surface. Then they inject some plastic resin over it for protection. The result is an aluminum reflective surface with pits that correspond to the 1's and 0's for the computer laser to read. Sounds simple, and it is. It is a mechanical process that a single highly automated machine can perform in (I understand) a few seconds, or 1,000 per hour. It is all self contained, and easy to run, a huge advance over the first production methods.
The complexity is in the equipment that makes the master, not the equipment that makes the duplicates.
The machine runs 24 hours per day, every day of the year. The only downtime is in preventative maintenance. At 80% uptime, that makes 1000 cd/hr*24 hrs*365 days*80%=7,008,000 cd's per year.
The market for disks has exploded. It is the medium of choice for software and music, and there is not enough capacity in the industry to supply the demand. That has kept the prices high, to the point where there is $1 profit per cd. Don't forget, people still spend $15 retail per cd, and the cost out of the factory is fallen from 5 years ago. There is still lots of profit for everyone in the chain.
The future looks no less promising. The same technology also makes the DVD format. DVD will become favoured for movies within (it's predicted), 5 years. Think of all the disks that will be required for movie rental stores, as well as the home market. Next time you are in a movie rental outlet do your own estimate. This should assure MDK of a ready market for not just one, but many many machines.
This is what I have uncovered from my due diligence. I urge you and everyone to do their own and not accept my opinions as fact. |
