For a number of years, two competing formats — Sony Corp.’s Blu-ray and Toshiba Corp.’s HD DVD — have been traveling on a collision course, wedded to its own incompatible technology. Each format promises better picture quality, more-interactive features and stricter copy protection.
Now, electronics makers and studio heads again are in talks to merge both high-definition formats.
If the groups are successful, the industry will stave off a repeat of the costly format war between Betamax and VHS videocassettes nearly 20 years ago.
But if the two sides can’t come up with an agreement for one format, the costs could add up for production and distribution companies because of dual production setups and duplications, as well as other costs. Rival formats would likely sit side by side on store shelves and retailers would see a steady stream of returns as consumers start buying the wrong DVDs for their next-generation players.
Both formats have the support of several big electronics makers that hope to drive sales of a new line of players and recorders. The formats — both using today’s same-size DVD discs — also get support from mainstream studios that are hoping the next generation of DVDs will help stave off piracy while boosting sales and rentals.
The idea of a merged format hasn't gotten much support until now.
Sony President Ryoji Chubachi earlier this month said that his company "has not given up" on a single format.
"In the area of next-generation optical discs, we continue to be open to discussions with supporters of other formats," a Sony spokeswoman told Dow Jones Newswires.
Meanwhile, Toshiba’s HD DVD lead consultant, Warren Lieberfarb, said that Toshiba "remains interested in a single standard that would be in the best interest of the consumer.”
On the studio side, NBC Universal CEO Bob Wright has said he’s a one-format advocate. Sony Studios CEO Howard Stringer also believes in one format.
But with all of that said, a tremendous amount of money and time has been poured into both formats. And some industry executives are expected to be inflexible.
One maker, Matsushita in particular, has invested heavily into Blu-ray development and is unlikely to support a compromise that would undermine its efforts.
To reach a resolution, time may not be on the industry’s side. The HD DVD companies hope to get both hardware and movie titles such as "The Bourne Supremacy" and "Ocean's Twelve" on the market in time for the 2005 holiday season.
