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Tuesday 24 July 2007

High-def DVD adoption slowed by duelling standards

Hernan Alcerreca

while high-definition dvd technology has been in the market for a year now, consumers have yet to fully embrace it; two standards still exist in the market, which causes confusion for potential users. The industry is also beginning to see the legal community step up its game; two suits have been filed recently.

Tokyo-based Toshiba Corp. reported that it has filed a lawsuit with the Düsseldorf Regional Court in Germany against German DVD disc replicator EDD Bizz GmbH and its managing director Denny Holwerda, for alleged infringement of Toshiba’s DVD patents. Separately, according to an article in the Wall Street Journal, South Korea’s LG Electronics Inc. has filed a lawsuit in the U.S. district court for the western district of Wisconsin against Quanta Computer Inc., alleging that the Taiwan company is infringing on four patents related to LG’s DVD technology.

In addition to lawsuits, news reports are highlighting the fact that Hollywood studios are still split over the competing Blu-ray and HD DVD formats. As such, Warner Bros. is said to be delaying the launch of a dual-format disc until next year.

Although Warner Bros. introduced its Total HD disc earlier this year as a compromise between the incompatible Blu-ray and HD DVD formats, the concept has yet to gain traction because only two studios produce DVDs in both formats—Warner Bros. and Paramount Pictures, a division of Viacom—which is required since Total HD discs contain a Blu-ray copy of a movie on one side and an HD DVD version on the other. For the Total HD technology to take off, other studios must also embrace both formats along with the Total HD technology and release at least 10 popular titles before stores would be willing to devote shelf space to the discs, Warner execs said, which is unlikely to happen by Q4.

Warner said it is hoping to convince other studios that overall movie disc sales are boosted when titles are available in both formats.

In the Blu-ray camp are the majority of studios with only Universal Studios selling DVDs exclusively in the HD DVD format.

Warner said its double-sided disc would eliminate the need to declare a winning technology and reduce consumer confusion and fear of choosing the wrong format.

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