| SIC Codes: | 3695 |
| NAICS Codes: | 334613 |
The US magnetic and optical media manufacturing industry includes about 100 companies with combined annual revenue exceeding $2 billion. Major companies include Imation and FUJIFILM Recording Media, as well as integrated disk drive manufacturers Seagate and Western Digital. The US industry is concentrated: the four largest companies account for more than 80 percent of revenues.
Demand for magnetic and optical media is driven by ever-expanding data storage needs of businesses and consumers. However, demand for particular storage formats can decline rapidly as new technologies are developed. The profitability of individual companies depends on manufacturing efficiency, rapid technological advancements, effective marketing, and efficient distribution. Large companies enjoy economies of scale in manufacturing and distribution. Small companies can compete effectively by developing new products. The industry is capital-intensive: average annual revenue per worker is $500,000.
Major products include recordable, rewritable, and blank optical discs; hard drive disks; and magnetic tape storage, including cartridges, blank audio and video tapes, and floppy disks.