[opendtv] News: Split In U.S. Filmmakers Fuels Battle Over New DVD Formats
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Tue, 30 Nov 2004 07:24:01 -0500
Split In U.S. Filmmakers Fuels Battle Over New DVD Formats
November 30, 2004 12:00am
Source: Nihon Keizai Shimbun America, Inc.
Nikkei English News: TOKYO (Nikkei)--Monday's=20
announcement that four U.S. movie production=20
firms are throwing their support behind the=20
next-generation DVD format developed by Toshiba=20
Corp. and NEC Corp. evens the competition with a=20
rival format touted by a Sony Corp.-led=20
contingent, which has already secured the backing=20
of several Hollywood studios.
Paramount Pictures Corp., Universal Studios, and=20
Time Warner Inc.'s Warner Bros. and New Line=20
Cinema said they will market software using the=20
HD-DVD format championed by the Toshiba-NEC=20
coalition. These companies accounted for about=20
45% of DVD software sales in the U.S. for the=20
January-June period.
In October, Sony brought Twentieth Century Fox=20
=46ilm Corp. into its fold. The Sony camp, which=20
developed the Blu-ray Disc format, also includes=20
Sony Pictures Entertainment Inc. and=20
Metro-Goldwyn-Mayer Inc. A consortium led by the=20
consumer electronics giant reached a deal in=20
September to acquire MGM. The three movie studios=20
hold a roughly 30% share of the DVD software=20
market.
But excluding group-affiliated firms, Sony's=20
Hollywood base for promoting the next-generation=20
format is weak. And Twentieth Century Fox has not=20
issued detailed plans, unlike the production=20
companies aligned with the Toshiba-NEC camp.
A Sony official on Monday said the firm will=20
"continue talking with Time Warner and the=20
others" to market its software, referring to the=20
studios that chose to back the HD-DVD format.=20
Sony is also prepared to make a concerted effort=20
to secure the support of Walt Disney Co., which=20
has a strong brand image and about a 17% share of=20
the DVD software market.
Sony is also laying the groundwork for producing=20
compatible equipment. Dell Inc., the world's=20
largest personal computer manufacturer, is part=20
of the Blu-ray Disc contingent. Sony, Matsushita=20
Electric Industrial Co. and Sharp Corp. are=20
preparing to market compatible DVD recorders.
"We have a strategy of focusing on both software=20
and the commercialization of hardware," says a=20
senior Sony official.
The Toshiba camp cannot be complacent despite its=20
new Hollywood allies. Time Warner and others have=20
not commented on whether they will sell software=20
compatible with the Blu-ray Disc format.=20
Depending on the outcome of the format battle,=20
sales under the rival format could be considered.
In fact, a request from Toshiba that a senior=20
Time Warner official attend Monday's news=20
conference was turned down. This cautious move=20
may have been prompted by the potentially fluid=20
situation that could result when Disney and the=20
other uncommitted studios make their decisions.
(The Nihon Keizai Shimbun Tuesday morning edition)
<<Nikkei English News -- 11/29/04>>
<< Copyright =A92004 Nihon Keizai Shimbun America, Inc. >>
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