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Sony, Philips, Panasonic Team to Reduce Licensing Costs

By Chris Tribbey | Posted: 26 Feb 2009

Sony, Philips and Panasonic have banded together to create a new one-stop-shopping licensing group for Blu-ray Disc, DVD and CD products.

By allowing just one stop for the rights to make Blu-ray, DVD and CD players, burners and discs, the three companies expect reduce the licensing costs by “at least 40% … than the current cumulative royalty rates for individual Blu-ray Disc, DVD and CD format licenses.”

“By establishing a new licensing entity that offers a single license for Blu-ray Disc products at attractive rates, I am confident that it will foster the growth of the Blu-ray Disc market and serve the interest of all companies participating in this market, be it as licensee or licensor,” said Gerald Rosenthal, former head of IP at IBM, who will be CEO of the new licensing group.

The three companies expect license fees for a Blu-ray player to be $9.50, $14 for a recorder. Blu-ray Disc license prices are expected to drop to 11 cents for a read-only disc, 12 cents for a recordable disc, and 15 cents for a rewritable disc.

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