While China's pre-recorded disc makers may be well known for piracy, they are also just become a major source of pre-recorded discs for Hollywood studios when it comes to OEM orders.
This time the top eight Hollywood movie studios have placed OEM orders from the China-based optical disc manufacturers for both newly released and existing titles, making it a threat to Taiwanese disc makers including U-Tech Media and Infodisc Technology. Originally, the Chinese maker's production equipment was inferior and of lower capacity when compared with the Taiwanese maker's production equipment; however this has changed with investments by Japanese pre-recorded disc makers. With the Chinese makers quoting significantly lower OEM orders, this was enough to make Hollywood studios to choose China over Taiwan for its DVD movie disc OEM orders.
From what I can see, regardless of what price Hollywood gets its discs for, it will almost certainly absorb any savings it makes. The full story can be read here at this DigiTimes source.
