Double Standards Likely for Next-Generation DVDs

CEATEC JAPAN 2005, exhibiton on consumer electronics, was held in Chiba, Eastern Japan on Oct. 7. It has attracted many viewers.

 DVD manufacturers have failed to agree on which technology-Blu-ray or HD ( high-definition)-to use for next-generation discs, and are likely to develop products to different standards. Meanwhile, producers of software and content, the key players in the DVD industry, have not made clear which system they will favor, and it is increasingly difficult to predict which will prevail.
 At the end of 2005, Toshiba Corporation will launch HD-DVD-compatible PCs and DVD players, while in the spring of 2006 Sony Corporation will start selling the PlayStation 3 (PS3) game machine using Blu-ray discs. The battle at the store shelves is now beginning.

Both Systems Use Blue Laser

Blu-ray Disc Player is next-generation DVD player. It was on technical display at CEATEC Japan on Oct. 5.

 At the international communications equipment exhibition held at Chiba Makuhari Messe on October 4-8, Toshiba's HD-DVD players drew much attention. The company attached so much importance to this event that President Atsutoshi Nishida personally attended the display venue. Industry interest was most aroused, however, by the visit of Kunio Nakamura, President of Matsushita Electric Industrial Co., Ltd to the Toshiba booth. The two presidents exchanged their name cards.
 The two camps had earlier announced top-level moves to create a single standard for disc production. But the sight of the two presidents (of opposing camps in this issue) exchanging name cards prompted some observers to wonder how serious they were because if they are still polite strangers they could not be consulting closely on the matter. 
 So positions on next-generation DVD standards remain entrenched, with one group of companies led by Toshiba and NEC supporting the HD-DVD format, and others headed by Sony and Matsushita advocating the Blu-ray system. Both groups remain far apart. Both systems use short-wave blue laser for high-density recording. The only difference is that production costs for HD-DVD are lower, though memory capacity is limited to 15 giga-bytes on one side. Blu-ray disc has a memory capacity of up to 25 giga-bytes, but production costs are high.

The Key Question: Where Does Hollywood Stand?

In the PC industry, Microsoft and Intel of the U.S. in September announced their support for the HD-DVD format, to the delight of Toshiba and NEC. But the game industry inclines toward the Blu-ray format, following Sony's launch of PS3. The divergence reflects differing applications.
 The crucial factor is the stance of the U.S. movie industry, which is likely to be the main content provider for next-generation DVDs. Big Hollywood studios such as Warner Brothers, Universal Pictures and Paramount Pictures were initially gung-ho about HD-DVD, which offers good protection against copying. But Paramount and Warner now say they will also provide Blu-ray-compatible content. Some observers now think Blu-ray has the edge.
 In addition to Sony Pictures (formerly Columbia Pictures), 20th Century Fox and Disney support the Blu-ray format. As a result of Sony's capital investment in MGM, it is believed that about half of U.S. producers of color movies now belong to the Blu-ray camp.