Blu-ray expected to boost Cinram
Will start producing discs this yearTORONTO -- High-definition Blu-ray discs are expected to drive volume growth at Canadian replicator Cinram International Income Fund as DVD sales continue to decline.
Toronto-based Cinram, which makes CDs and DVDs for the entertainment industry, said it will build capacity to produce Blu-ray discs beginning in the second half of 2008.
Cinram posted a first-quarter loss on lower DVD sales. Cinram said it lost $3.4 million on revenue of $406.6 million for the three months to March 31, against a profit of $7.2 million on revenue of $443.9 million in 2007.
Cinram told analysts that sales of DVDs will continue to slump as the format is replaced with high-definition disc formats.