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DVD format talks lean to Blu-ray, source says

Talks between Sony and Toshiba to unify next-generation DVD formats are leaning toward the technology supported by Sony, a source says.

Reuters

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June 9, 2005 9:00 a.m. PT

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Talks between Japan's Sony and Toshiba to unify next-generation DVD formats are leaning toward a disc structure supported by Sony, a source close to the matter said Tuesday.

Sony and Toshiba, heading rival groups, have waged a three-year war to have their new technology standards adopted by the industry and gain pole position in the multibillion-dollar markets for DVD players, PC drives and optical discs.



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But the companies said last month they were in talks to develop a common standard, in a move to avoid VHS/Betamax-like dual formats that could discourage consumers from shifting to advanced discs and stifle the industry's growth.

Sony's Blu-ray technology is backed by a group including Dell, Philips Electronics, Samsung Electronics and Matsushita Electric, maker of Panasonic products.

The source said a unified format based on Blu-ray's disc structure was being discussed in the talks, held between Sony, Toshiba and Matsushita.

He added, however, it was unclear whether and when the two sides would reach a final agreement on a common format.

The Nihon Keizai newspaper said earlier that Sony and Toshiba were in final talks eyeing a new format based on Blu-ray's disc structure and Toshiba's software for efficient data transfer and copyright protection.

In Blu-ray, a layer to hold data is put on the surface of a substrate and covered by thin protective layers, while in HD DVD discs, which are supported by Toshiba, a memory layer is sandwiched between two substrates.

The two sides agree that it would be best for consumers to have a common format, but shifting to a rival standard could mean a delay in product development and the commercial launch, making unification difficult.

Toshiba, which supports HD DVD technology along with NEC and Sanyo Electric, said in a statement nothing had been decided on the unified format.

At the core of both formats are blue lasers, which have a shorter wavelength than the red lasers used in current DVD equipment, allowing discs to store data at the higher densities needed for high-definition movies and television.

Member companies in the Blu-ray camp are set to meet in Tokyo next week to discuss technological and promotional matters.

Shares in Sony were down 0.74 percent at 4,000 yen in afternoon trade, while Toshiba fell 1.1 percent to 448 yen. Both underperformed the Tokyo stock market's electric machinery index, which was down 0.22 percent.