At 10:36 AM -0400 6/27/05, John Golitsis wrote: >Wanna guess again? > >http://www.businessweek.com/ap/financialnews/D8AVTQ501.htm > I don't see the connection. This is just another press release announcing another alignment in the coming format war. And there is good reason for such an announcement at this time, as Microsoft has a huge bet riding on all of this. There are several key issues at play in this battle. 1. The physical media 2. A new DRM solution 3. The back end standard for enhanced navigation and web services Sony seems in no mood to bargain on the physical media. This is to be expected as they have committed to Blu-Ray for the next generation Play Station. As Jeroen correctly noted, the DRM solution is a major sticking point. Based on insights from friends who are close to the negotiations, it sounds like there is no consensus on a DRM solution. And as Jeroen noted this is going to be a huge issue for the studios. Obviously Microsoft has a major stake in this issue as well. DRM solutions can be added to any physical media format. So red laser is no more out of the game on this issue than the competing HD-DVD formats. Apple's iTunes is a good example of how a DRM technology can be bolted onto existing distribution media; it works for Internet downloads, across networks, on the iPod and on the CD Audio discs you can burn using iTunes. It would not surprise me if it is Apple that launches a new video service to parallel iTunes, that works across multiple media, including red laser DVDs. The Microsoft/Toshiba announcement most likely is related to the third issue. There is an intense battle going on relative to the standards for enhanced interactivity and linking of HD-DVD to Internet services. This battle also has strong ties to the DRM solutions that are on the table. Sony, Philips, Apple and others are promoting a Java-based solution, while Microsoft is pushing their dot.net services. I have heard a number of people express concerns that if Microsoft wins the third battle they will have their hooks into everyone, in essence having control over the evolution of the HD-DVD standard. What all of this says is that there is little ground for compromise here. There does not appear to be a solution that is acceptable to either side, thus it is likely that the wrangling will continue, or that the battle will be taken to the consumers. I believe Jeroen is correct; that nothing is going to happen for quite some time. The studios have no incentive to push one format over the other. They are making big bucks off of red laser DVD now, and do not want to do anything to slow the momentum there. The CE and computer industry players are unwilling to compromise on a solution that will give a few companies control over the evolution of DVD. And then there is the reality that DVD may not even be the medium of choice for distribution of video in the future; it's just a bit bucket (both red an blu), that may be better suited as a consumer archiving format for the files that they download to hard disks. Bottom line, the troops are aligning on the battlefield, but neither side has the confidence to fire the first shot. This is the kind of environment where a third approach can get a foothold, in much the same manner that Apple was able to break through the bickering and deliver a viable solution for music, while the industry bickered over standards. Regards Craig ---------------------------------------------------------------------- You can UNSUBSCRIBE from the OpenDTV list in two ways: - Using the UNSUBSCRIBE command in your user configuration settings at FreeLists.org - By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word unsubscribe in the subject line.