(Nikkei BP Group)
(No.1 High-Tech News Site in Japanese)
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| DVD Businesses Take Off in Taiwan
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December 11, 1998 (TAIPEI) -- Ritek Inc. and Catalyst Logic Co., Ltd.
obtained authorization from Orion Network Systems Inc., United Artists
Theater Group and Metro-Goldwyn-Mayer Inc. (MGM) for DVD production
and distribution in Taiwan.
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This follows the success of InfoDisc Technology Co. Ltd. in obtaining
authorization from Warner Advanced Multimedia Operations to produce
DVD for Warner Brothers Records.
That allows Ritek and Catalyst Logic to join CMC Magnetics Corp., Prodisc
Technology Inc. and InfoDisc to compete for the distribution and production
rights for the eight largest film makers in the United States.
Ritek is already a major DVD-ROM disc producer for U.S. computer game
company, NuTech.
After joining hands with Catalyst Logic to obtain the production right
from Orion, United Artists and MGM, the company is expected to boost
its DVD output significantly in the future.
Ritek's production may even exceed the one to two million DVDs produced
by InfoDisk for Warner Brothers. Catalyst Logic will serve as the distributor
of the three U.S. filmmakers in Taiwan.
DVD has not been able to make a hit on the Taiwan market due to a lack
of sources and high prices.
However, the alliance of the aforementioned DVD producers with U.S. filmmakers
is stimulating ideas for the DVD rental business.
Blockbuster, a leading U.S.-based video rental chain store, plans to
launch DVD rental in Taiwan in January 1999.
Blockbuster recently started renting video compact discs in 52 of its
local outlets, and within just a few weeks, revenues from this business
grew to account for 13 percent of the company's total.
Currently, Blockbuster is negotiating cooperation with Catalyst Logic,
on the royalties for renting DVDs of films produced by MGM, United Artists
and Orion.
(Commercial Times, Taiwan)
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