Two decades after the competing video formats battled for space in American living rooms, a new war is looming between two incompatible types of high-definition video discs scheduled to hit the market later this year.
One, called HD DVD, is the official choice of the group that backs conventional DVDs. The other, called Blu-ray, is spearheaded by more than a dozen big-name consumer-electronics and high-tech companies.
The two camps are trying to strike a last-minute deal and agree on common technical standards.
But with the first devices and discs slated to hit stores this Christmas, the window for an agreement is closing fast.
In addition to the money and egos involved, the physical differences in the two disc formats are keeping the two sides far apart.
"The train is going to start leaving the station shortly," said Josh Peterson, director of strategic alliances for Hewlett-Packard Co., which backs Blu-ray. A format war "looks more and more inevitable every day. We're approaching the point of no return."
Major Hollywood studios exacerbate the problem by splitting their support between the two formats, each of which promises to deliver richly detailed pictures and cinema-quality sound. Both types also will play current DVDs. Guided by differing visions for the high-definition future, half of the studios have announced plans to release HD DVD discs, and the other half are expected to back Blu-ray.
Although HD DVD players are expected to be in stores for the all-important holiday shopping season, the backers of Blu-ray think they have the advantage: Sony Corp (NYSE:SNE - news). plans to include a Blu-ray drive in its hotly anticipated PlayStation 3 video game console. The game console won't arrive in the U.S. until next year, but the popularity of the PlayStation franchise may inspire buyers to wait for it.
If sales of PlayStation 3 repeat the performance of PlayStation 2, there could be Blu-ray players in several million homes in a matter of months.
if one format quickly becomes obsolete, casualties could include consumers who spend about $1,000 on the losing disc player. Analysts say a format war would also slow the transition to high-definition discs, reducing sales for consumer-electronics manufacturers and studios alike.
At stake is a multibillion-dollar market for next-generation DVDs.
"If the difference in picture quality is that great, then yeah, I'll buy one fairly soon," said Fujii, 41, who bought a 52-inch rear-projection HDTV two years ago to watch high-definition satellite TV broadcasts. "If not, I would just use the DVDs I have now. A thousand dollars is a lot to spend on a player. Right now you can get a DVD player for under $100."
Still, prettier pictures may not be enough to persuade the masses to embrace high-definition discs, said Bob Chapek, president of Buena Vista Home Entertainment, a division of Walt Disney Co. "You'd better be chock-full of features" that are not available on DVD, Chapek said.
That is why Disney is backing Blu-ray, which offers at least 25 gigabytes per disc, compared with 15 gigabytes for basic HD DVD discs and 4.7 gigabytes for conventional DVDs.
Executives at Warner Bros., which plans to release HD DVD discs, counter that the Blu-ray group has not been able to answer crucial questions about manufacturing costs, their discs' resistance to warping and other reliability issues. They say the HD DVD group has proven its ability to mass-produce double-layer discs and hybrids that combine a conventional DVD on one side with a high-definition movie on the other — a key product for movie fans who have yet to buy an HDTV.
Warner Bros. is much more attuned to the manufacturing costs and compatibility with conventional DVDs than Disney, which craves maximum capacity as a way to make the new discs stand out from current discs. Sony Pictures Home Entertainment President Ben Feingold envisions people playing movies on all kinds of digital devices, and he likes the prospect of Blu-ray discs being played in game consoles as well as set-top players.
Sony's corporate siblings also stand to collect a share of the royalties from Blu-ray discs, while Warner Bros. would receive a piece of the HD DVD fees. And News Corp.'s 20th Century Fox has held off from endorsing either format as it presses both sides for more extensive antipiracy features and weighs the evidence on manufacturing costs.
One factor that could buy more time for negotiations is antipiracy protection, an issue that remains unresolved. Without a final blueprint for copy protection, studios will put off releasing movies and TV shows on the new discs, which in turn will delay a hardware rollout.
Retailers prefer a single format over two competing technologies. "Ultimately, we believe one standard is far preferable to multiple standards," Circuit City spokesman Jim Babb said.
Wal-Mart Stores Inc., the nation's largest retailer, echoed the sentiment. "We think it could be too confusing for our customers if there are two different formats," spokeswoman Karen Burk said.
Stores are reluctant to devote shelf space to two technologies instead of one. In addition, analysts say the lack of a clear winner would dampen sales as consumers adopted a wait-and-see approach.
"When you introduce an element of confusion, you're encouraging the consumer to put off the purchase," said James Penhune, media analyst with Strategy Analytics. "That's been the case with previous format wars."
Hence, the financial incentive to come to an agreement is strong.
Entire Article
One, called HD DVD, is the official choice of the group that backs conventional DVDs. The other, called Blu-ray, is spearheaded by more than a dozen big-name consumer-electronics and high-tech companies.
The two camps are trying to strike a last-minute deal and agree on common technical standards.
But with the first devices and discs slated to hit stores this Christmas, the window for an agreement is closing fast.
In addition to the money and egos involved, the physical differences in the two disc formats are keeping the two sides far apart.
"The train is going to start leaving the station shortly," said Josh Peterson, director of strategic alliances for Hewlett-Packard Co., which backs Blu-ray. A format war "looks more and more inevitable every day. We're approaching the point of no return."
Major Hollywood studios exacerbate the problem by splitting their support between the two formats, each of which promises to deliver richly detailed pictures and cinema-quality sound. Both types also will play current DVDs. Guided by differing visions for the high-definition future, half of the studios have announced plans to release HD DVD discs, and the other half are expected to back Blu-ray.
Although HD DVD players are expected to be in stores for the all-important holiday shopping season, the backers of Blu-ray think they have the advantage: Sony Corp (NYSE:SNE - news). plans to include a Blu-ray drive in its hotly anticipated PlayStation 3 video game console. The game console won't arrive in the U.S. until next year, but the popularity of the PlayStation franchise may inspire buyers to wait for it.
If sales of PlayStation 3 repeat the performance of PlayStation 2, there could be Blu-ray players in several million homes in a matter of months.
if one format quickly becomes obsolete, casualties could include consumers who spend about $1,000 on the losing disc player. Analysts say a format war would also slow the transition to high-definition discs, reducing sales for consumer-electronics manufacturers and studios alike.
At stake is a multibillion-dollar market for next-generation DVDs.
"If the difference in picture quality is that great, then yeah, I'll buy one fairly soon," said Fujii, 41, who bought a 52-inch rear-projection HDTV two years ago to watch high-definition satellite TV broadcasts. "If not, I would just use the DVDs I have now. A thousand dollars is a lot to spend on a player. Right now you can get a DVD player for under $100."
Still, prettier pictures may not be enough to persuade the masses to embrace high-definition discs, said Bob Chapek, president of Buena Vista Home Entertainment, a division of Walt Disney Co. "You'd better be chock-full of features" that are not available on DVD, Chapek said.
That is why Disney is backing Blu-ray, which offers at least 25 gigabytes per disc, compared with 15 gigabytes for basic HD DVD discs and 4.7 gigabytes for conventional DVDs.
Executives at Warner Bros., which plans to release HD DVD discs, counter that the Blu-ray group has not been able to answer crucial questions about manufacturing costs, their discs' resistance to warping and other reliability issues. They say the HD DVD group has proven its ability to mass-produce double-layer discs and hybrids that combine a conventional DVD on one side with a high-definition movie on the other — a key product for movie fans who have yet to buy an HDTV.
Warner Bros. is much more attuned to the manufacturing costs and compatibility with conventional DVDs than Disney, which craves maximum capacity as a way to make the new discs stand out from current discs. Sony Pictures Home Entertainment President Ben Feingold envisions people playing movies on all kinds of digital devices, and he likes the prospect of Blu-ray discs being played in game consoles as well as set-top players.
Sony's corporate siblings also stand to collect a share of the royalties from Blu-ray discs, while Warner Bros. would receive a piece of the HD DVD fees. And News Corp.'s 20th Century Fox has held off from endorsing either format as it presses both sides for more extensive antipiracy features and weighs the evidence on manufacturing costs.
One factor that could buy more time for negotiations is antipiracy protection, an issue that remains unresolved. Without a final blueprint for copy protection, studios will put off releasing movies and TV shows on the new discs, which in turn will delay a hardware rollout.
Retailers prefer a single format over two competing technologies. "Ultimately, we believe one standard is far preferable to multiple standards," Circuit City spokesman Jim Babb said.
Wal-Mart Stores Inc., the nation's largest retailer, echoed the sentiment. "We think it could be too confusing for our customers if there are two different formats," spokeswoman Karen Burk said.
Stores are reluctant to devote shelf space to two technologies instead of one. In addition, analysts say the lack of a clear winner would dampen sales as consumers adopted a wait-and-see approach.
"When you introduce an element of confusion, you're encouraging the consumer to put off the purchase," said James Penhune, media analyst with Strategy Analytics. "That's been the case with previous format wars."
Hence, the financial incentive to come to an agreement is strong.
Entire Article
...Why doesn't Hollywood step up & say....just one format or no movies.........Hollywood wants to make $$$$ also....
