• HD-DVD systems prepare for late 2006 introduction.
• Blu-ray disc backers plan spring 2006 player introductions.
• Hollywood studios split on format support.

As the growth rate for the DVD category peaks, CE manufacturers are launching the next generation in high-capacity optical disc formats that store films and videos in full high-definition resolution with enough room left over for various interactive extras, like video games. However, plans for launch of those systems were delayed after content producers pushed for new levels of content security that would give them great flexibility in determining how programs could be copied or distributed through in-home networks.

Early in 2006 an interim managed copy system called the Advanced Access Content System (AACS) was approved to allow the new disc players to be marketed, and the first players arrived this spring.

Currently two competing systems have been proposed, each of which is based on short-wavelength blue laser technology to read densely packed pit structures on DVD-sized optical discs. In early 2006, after each group made aggressive moves to line up Hollywood Studios to pledge software support for their respective formats, it appeared that a full-fledged format war, akin to the early days of the Betamax vs.VHS video cassette battle was taking shape.

While both systems share compatibility with similar video compression schemes – MPEG-2, MPEG-4 AVC (H.264) and Windows Media VC-1 – developers point out that they have very different disc structures, which make universal machines difficult or impossible to produce.

Blu-ray Disc Spec Proposed for HDTV Recording
In early 2002, nine CE companies jointly established the basic specifications for a next-generation large capacity optical disc video recording format that will be capable of recording and playing back, among other things, HDTV programming.

Called Blu-ray Disc (BD), the new format is similar to the DVD format in the size of the disc, and is not expected to be applicable to specifications established for the present DVD format by the DVD Forum. The BD specification enables the recording, rewriting and play back of as high as 25 GB of data on a single-sided single-layer disc. It employs a short wavelength (405nm) blue-violet laser for high density reading and recording. Dual-layer BDs will store as much as 50 GBs of data.

A typical single-layer pre-recorded BD-ROM disc will carry more than two hours of HDTV video or more than 13 hours of standard TV broadcasts (VHS/standard definition picture quality at 3.8 Mbps). In addition, the high bit-rate (36Mbps) capability of the system enables recording high-definition images from digital video cameras, while the random access capabilities of the disc will simplify and add greater flexibility to video editing.

Prototype BD decks have been demonstrated using discs encoded in the 1080p (1920x1080) high-definition TV format, making it the first consumer playback device capable of outputting native 1080p signals. Many of the first BD players planned for the format’s spring 2006 introduction will be capable of outputting 1080p signals for use with the most advanced 1080p flat-panel and microdisplay rear projection HDTVs.

Through the use of combination blue laser/red laser pickups, many BD player/recorders are expected to be able to read prerecorded standard DVD-videos. Therefore, most Blu-ray players and recorders are expected to play BDs and legacy DVD-video discs.

Companies involved include Hitachi, LG Electronics, Matsushita, Pioneer, Royal Philips Electronics, Samsung, Sharp, Sony and Thomson Multimedia.

Blu-ray Gains Studio, Gaming Support
The Blu-ray Disc camp won major credibility when it announced that Walt Disney Studios made a non-exclusive pledge to support the BD format with pre-recorded software, joining Sony Pictures (Columbia Tri-Star), which is owned by one of BD’s primary developers. In 2005, the BD camp picked up critical support when Paramount and Warner Bros., two major studios that earlier had pledged to release titles in the rival HD-DVD format, said they also would release titles for the Blu-ray disc system.

In addition, Sony has announced plans to make its next-generation video game console (PlayStation 3) capable of playing back BD movies. Meanwhile, electronic games developer Electronic Arts pledged to produce video games on BD discs.

First Blu-ray Recorders Launch in Japan
Sony became the first manufacturer to deliver a BD recorder in April 2003, when it unveiled a combination satellite decoder/Blu-ray recorder to the Japanese market. Panasonic and Sharp followed that introduction with recorders of their own that better the original Sony deck by also reading dual-layer BD media. However, those early decks were incapable of playing back more recently developed BD-ROM media that will be used for pre-recorded software.HD-DVD Promoted with Appeal to Disc Replicators

When first introduced by Toshiba and NEC in 2002, the HD-DVD (at the time called Advanced Optical Disc) was billed as a blue laser recordable disc format that was based in large part on the established DVD format. This would help assure backward compatibility of players with standard DVD discs, and the ability of disc replicators to upgrade to the new medium for lower cost and with less disruption than was possible with the rival Blu-ray Disc system. The physical disc structure of HD-DVD is similar to that of current DVD media, and calls for using two 0.6-millimeter-thick discs bonded back to back.

Like Blu-ray Discs, the HD-DVD format will use DVD-sized (5-inch diameter) discs. But unlike BD, HD-DVD has been acknowledged by the DVD Forum, which ensures playback capability with DVD discs. The HD-DVD specification enables the recording, rewriting and playback of as much as 15 GBs of data on a single-sided single-layer disc. It employs a short wave length (405nm) blue laser for high density reading and recording. Dual-layer HD-DVD discs will store as much as 30 GBs of data., which can hold as much as eight hours of high-definition movie content, according to Toshiba.

Comparatively, a standard 135-minute movie, encoded at 12 megabits per second, will require about 12 GB to 13 GB of storage for video, as much as five GB more for a high-end, DVD-Audio-level soundtrack, plus space for additional audio tracks (to support both Dolby Digital and DTS), multiple language tracks and extras.

First Players Announced
At the 2006 International CES, several companies, led by Toshiba, announced plans to launch the first HD-DVD players in the U.S. in spring 2006. The first players are slated to sell for between $499 and $799 and will playback both DVD and HD-DVD media. Early models will output selectable digital resolution formats including 720p and 1080i, but are not expected to feature support for 1080p. Digital outputs include HDMI with HDCP and IEEE-1394 with DTCP and will add Ethernet terminals for interactive applications. Support will be offered for Dolby Digital and DTS surround sound formats, and will include optical and coaxial digital audio outputs. In addition, Toshiba said it plans to introduce a HD-DVD recorder at some point, but the introduction timeline has not been revealed.

Hollywood Studios Pledge HD-DVD Support
Late in 2004, HD-DVD made a serious bid for acceptance as the next-generation disc standard by announcing the non-exclusive support of three studios--Paramount Pictures, Universal Pictures and Warner Bros (along with its affiliates New Line and HBO Home Video). Together, the studios announced plans to offer more than 50 films in HD-DVD, most of which would be available at the launch of the first players.

AACS System Brings Questions
An interim version of the Advanced Access Content System (AACS)was approved in early 2006 to enable the distribution of both HD-DVD and Blu-ray Disc players. Both formats use AACS as their primary digital rights management technology.

The eight-company AACS consortium agreed to a scheme which would enable content producers the option of requiring players to “image constrain” certain movies shipped over unprotected analog component video connectors. This system would instruct players to step down images sent over analog component video jacks from high-definition 1920x1080 to sub-high-definition 960x540 pixels. The full high-definition version of the movie then only would be viewable when shipped over digital HDMI jacks with HDCP content protection.

Under the AACS license, studios that opt to use image constraint must indicate it clearly on disc packaging. The 960x540 standard stipulated in the AACS agreement represents 50 percent higher resolution than standard-definition, but only one-quarter the resolution of full high-definition. Not all studios plan to use digital flags, called the image constraint tokens that are placed in titles to trigger the down-rezing command, and as this was written, no studio had come forward to announce plans to use the option. Estimates on how many first-generation HDTV sets are equipped only with analog inputs vary between six and 12 million. At the time most of those sets were built, no agreed-on industry standard had been established for copy-protected digital connections between devices.

Formats Face Obstacles
Beyond the issues related to a format war, both systems face a dramatically smaller audience than DVD players did at launch. Players and recorders in either camp are designed to appeal to owners of high-definition television sets, and at the end of 2006 total U.S. penetration of digital television products is expected to be about 32.5 million units, not all of which are HD-capable, according to CEA estimates.

In addition, starting at close to $500 each, the prices of early HD-DVD and Blu-ray Disc players, which were expected to be priced closer to $1,000, will be considerably higher than progressive-scan DVD players. Further limiting market demand is the possibility that some studios may use the AACS digital rights management system to “down-rez” HD content to 540p over analog component video outputs on some titles. This would prevent owners of older high-definition sets that lack digital HDMI connectors from viewing “image-constrained” titles in full high-definition.

However, as this was written, several studios said they would opt not to use the image constraint system until they find evidence of piracy linked to the unprotected component video jacks.

Both Camps Propose Dual-Format Discs
Backers of both formats announced the development of dual-layer disc technologies that will allow content to be stored in one of the new blue-laser formats on one layer and a standard DVD on the second layer at the same time. This could allow studios the option of producing discs that will play on both the new machines in high-definition and in standard DVD players in standard resolution.

China Proposes HD Disc Format Based on HD-DVD
Looking to avoid intellectual-property fees, China has said it would develop a next-generation high-definition disc format based on HD-DVD, but not compatible with it. The system, which would follow the red-laser EVD format the country already has announced, is planned for 2008.