As major manufacturers exit the Blu-ray market, Verbatim Japan and I-O Data expand their partnership to secure components and continue producing both media and drives, addressing critical supply shortages in Japan's shrinking but still-viable optical storage segment.
Two of Japan's remaining optical media manufacturers have doubled down on their commitment to keep Blu-ray alive, expanding a partnership that now covers both recordable media and drive hardware as the market faces a wave of exits.
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The partnership expansion
Verbatim Japan and I-O Data have significantly broadened their joint commitment to maintain Blu-ray product availability in Japan. Initially focused on disc media following Sony's shutdown of its last domestic recordable Blu-ray factory in February 2025, the renewed partnership now encompasses drive components and hardware production.
The timing is critical. With Sony having shipped its final domestic Blu-ray recorders in February and Buffalo announcing it won't produce successors to its portable USB Blu-ray writers, the optical storage market has been rapidly contracting. Elecom recently posted termination notices for its external drives, with end-of-sale dates extending into June 2025.
I-O Data, which serves as the sole domestic distributor of Verbatim-branded optical media in Japan, released the BD Reco Windows-compatible external Blu-ray drive in February 2025. According to a machine translation of their announcement, the device "has attracted a great deal of interest," validating the continued demand for optical storage solutions.
Market context and remaining players
The Blu-ray market has been in steady decline since its peak. According to JEITA figures, domestic Blu-ray recorder shipments totaled approximately 620,000 units in 2025, down dramatically from over 6.3 million in 2011. This represents a decline of more than 90% over 14 years.
LG exited the market as far back as 2024, having not released a new Blu-ray product since 2018. The current landscape leaves Panasonic as the sole remaining vertically integrated Japanese manufacturer of optical drives, creating a precarious supply situation.
Panasonic itself has struggled to meet demand. In March 2025, the company apologized for its inability to keep up with orders for its DMR-ZR1 4K DIGA recorder and announced plans to expand production to address the shortfall.
Why Blu-ray persists
The continued commitment from Verbatim and I-O Data reflects a genuine, albeit niche, market need. The companies cite the ongoing requirement to "record data I want to keep onto a disc I have on hand" as evidence that optical storage remains relevant for certain use cases.
This persistence likely stems from several factors:
- Archival stability: Optical media offers long-term data preservation without the need for power or subscription services
- Physical ownership: Users who prefer tangible media collections continue to value Blu-ray discs
- Professional applications: Certain industries and creative professionals still rely on optical media for data transfer and backup
- Cost considerations: For some users, optical media remains more economical than cloud storage for large files
The supply chain challenge
The expanded partnership addresses what has become the more pressing issue in the Blu-ray ecosystem. While media production faced challenges after Sony's exit, the drive hardware supply chain has emerged as the critical bottleneck.
By securing components and adjusting production lines, Verbatim and I-O Data aim to fill the void left by departing manufacturers. This strategic move positions them to capture the remaining demand while potentially extending the technology's lifespan beyond what many industry observers predicted.
Looking ahead
The commitment from these two companies doesn't signal a Blu-ray renaissance, but rather a managed decline of a mature technology that still serves specific market segments. The partnership's focus on both media and hardware suggests a comprehensive approach to maintaining the ecosystem rather than simply extending the life of one component.
As the optical storage market continues its contraction, the ability of Verbatim and I-O Data to secure components and maintain production efficiency will determine how long Blu-ray remains viable in Japan and potentially other markets. Their success could provide a blueprint for sustaining other legacy technologies facing similar supply chain challenges in an era of rapid technological obsolescence.
For now, Blu-ray enthusiasts and professionals who rely on optical media can breathe a small sigh of relief. The format's death has been postponed, if not prevented, by companies willing to serve the remaining market rather than abandon it to digital-only alternatives.
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