Taiwan's largest maker of pre-recorded optical disks, is negotiating a deal with Bollywood to outsource the production of Blu-ray flicks.

Company chairman Steven Chang said that U-Tech has become an outsourced producer of BD discs for top movie studios in Hollywood, and wants to sign up the lucrative Bollywood industry.

One of the biggest barriers to adoption of Blu-ray has been the cost. Not only do studios have to pay a high change to use the Blu-ray technology they have higher set up costs using local industry.

Bollywood's production costs are cheap and sticking material onto Blu-ray is expensive for everything other than blockbusters.