HD DVD Moves Forward on China-Only Format, Red-Laser Camcorders

Agreement to publish the China-only specs passed by a single vote, 8-7, following the usual confrontation between HD DVD’s backers on the SC and their Blu-ray rivals, we're told. Voting in favor were IBM, Intel, Microsoft, NEC, Sanyo, Toshiba and Warner. They were opposed by Disney, JVC, Matsushita, Mitsubishi, Pioneer, Sharp and Sony. Significant among 5 abstainers were LG, Philips and Samsung -- all Blu- ray companies. Their decision to straddle the fence probably reflects their significant business in China, and their probable belief that HD DVD will be welcomed there because of its lower cost compared with Blu-ray, we understand.

The China-only format will comprise most of HD DVD’s underlying technology, but probably use China’s home-grown AVS compression system, rather than the MPEG-2, MPEG-4 and VC1 codecs incorporated by HD DVD and Blu-ray. And although the preliminary spec has been published, to invite outside comment and spur further development, much remains to be done on the legal and business side before the China-only format can result in actual products.

To that end, the same vote authorized the SC’s China Subcommittee to draft a memorandum of understanding with Chinese authorities on ground rules for the format. Those would mandate that the revised format is for sale in China only -- not for export. It also will demand “strong DVD Forum participation” in governance and verification issues. The MOU also will define the scope of use of HD DVD technology and IP confidentiality, spell out issues of copy protection and adherence to updated specs. Other “expectations” from China by the DVD Forum include proper use of trademarked logos, etc.

In a less contentious vote, the SC approved work on “conceptual proposals” for HD DVD recording by red lasers on conventional DVD recordable media. That means camcorders that would use HD DVD’s advanced compression codecs to record HD images using cheaper and lower-power red lasers compared with blue ones, and time-proven 8-cm DVD blanks instead -- obviating the need to divert manufacturing resources for mini-HD blanks, we're told. In fact, camcorders that record HD-1081i using red lasers and conventional media already are market-bound from Sony and Panasonic. Since July, they've been licensing the so-called AVCHD format that’s based on MPEG-4/H.264. Discs made in the camcorders can run in Blu- ray players and some PCs, but not conventional DVD players. The SC approved camcorder development 11-2, with Sony and Pioneer opposing but Panasonic and 6 others abstaining. Panasonic has yet to offer an AVCHD camcorder, but Sony has 2.

Regional coding for HD DVD continues to be studied by the DVD Forum, but there was no voting last week. But for conventional DVD, whose regional coding has been violated almost since the 1997 launch, the SC voted to request stronger enforcement. It will ask the DVD Copy Control Assn., which administers the DVD license, to take action against manufacturers who provide so-called “multiregion” player -- meaning those that play discs from any region. If the flow of multiregion chips can’t be stopped, the DVD Forum will ask DVD CCA to pursue seizure of multiregion players by customs authorities. Finally, if SD-DVD regional coding can’t be enforced, we're told the Forum will consider scrapping it entirely so “legitimate manufacturers” can compete on a level playing field.