HD format wars

The battle for dominance of the emerging 'high definition' (HD) DVD market appeared one step closer to being resolved this week. 

HD offers significantly higher picture quality than existing video formats -- broadcast television and 'first-generation' DVDs, for example. This makes the transition to HD strategically critical to content owners, especially major film studios and television networks. 

The film industry is in an HD 'format war'.  Two camps -- and, crucially, alternative disc formats -- have been fighting it out, both of which rely on shorter-wavelength 'blue laser technology' to facilitate a significant increase in data storage compared to current discs, which rely on 'red laser technology'.  Despite this, the new formats are backwards compatible with first-generation DVDs.  There are two key differences between them: 

• Blu-Ray.  The Blu-Ray format offers data capacities from 25-50 gigabytes (GB), with additional space for up to 200 GB (using multiple readable layers). 
• HD-DVD.  The 'HD-DVD' format offers reduced data capacities from 15-30 GB, with additional space for 60 GB (using multiple readable layers).

While both formats are at a relatively early stage of development, major electronic producers and film studios over the past year have been coming out in support of their chosen formats:

• Microsoft, Hewlett-Packard and Intel are championing Toshiba's HD-DVD.
• Sony is the major proponent of Blu-Ray, with the support of a large number of major film studios and consumer electronics manufacturers.

Recent developments suggest that  Blu-Ray is likely to win the format war:

• Warner Brothers recently shifted its allegiance from HD-DVD to Blu-Ray.
• Blu-Ray discs have been outselling HD-DVD by over two to one in North America.

Nonetheless, speaking at this week's Consumer Electronics Show in Las Vegas, Sony Chief Executive Howard Stringer warned that the format war was not yet over.  Indeed, one of the highlights of this year's show has been the emergence of platforms for downloadable HD content.

SyncTV is using the Consumer Electronic Show to demonstrate hardware, usable with a range of devices, which will allow users to download a range of television shows.  The service, currently in beta form, will be fully launched later this year.  While minimum image quality is comparable to first-generation DVDs, HD content will be increasingly available.

Microsoft has announced that users of its Xbox gaming console will be able to download and store movies and programmes from a range of studios. Panasonic has announced that it will sell flat panel televisions in the United States, which will have internet connectivity. LCD television manufacturer, Westinghouse, and networking company, Pulse-link have unveiled a integrated, wireless television set.

While Blu-Ray is likely to become increasingly dominant, the format war may be short and bloody. A number of factors mean high definition DVDs may well be quickly superseded, as consumers watch downloaded HD content on wireless televisions:

• HD discs and players are relatively expensive.
• There is a growing consumer preference for downloadable content.
• Content has increasingly high image quality thanks to growing bandwidth capabilities.
• Wireless internet connectivity will become increasingly central to numerous aspects of daily life.