In late 2005, home theater enthusiasts are expected to have the additional choice of two next-generation optical disc systems that will play back discs encoded with full high-definition content.

These new formats each propose to offer DVD-sized discs that will contain either 30 or 50 gigabytes (depending on the format) of storage capacity to accommodate the massive data requirements of feature length high-definition movies, with room left over for multiple advanced, multi-channel, surround sound formats and various interactive extras. Some proposed hybrid discs even will allow content producers to produce discs with both high-definition and standard-definition DVD versions of the same program on one disc.

Manufacturers and Hollywood studios said this year they expect to launch optical disc formats based on blue-laser technologies, instead of the traditional red-laser systems that have powered DVD and CD players. Currently two competing systems, each based on short-wave length blue laser technology to read densely packed pit structures on DVD-sized optical discs, have been proposed. In early 2005, as 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 battle was taking shape.

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. The BD specification enables the recording, rewriting and play back of as much as 25 gigabytes of data on a single-sided single-layer disc and 50 GB on a dual layer disc.

A typical single-layer, prerecorded 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, 3.8 Mbps).

In addition, 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 to support new classes of 1080p flat-panel and micro-display rear projection HDTVs slated for market in 2005.

The format is not backward-compatible with current recordable DVDs, but it will be possible to use combination blue-laser/red-laser pickups to read pre-recorded standard DVD-videos. Therefore, most Blu-ray recorders probably will be developed to read both Blu-ray and legacy DVD-video discs.

HD DVD Offers Low Start-Up Costs
When first introduced by Toshiba and NEC in 2002, the HD DVD (at the time called Advanced Optical Disc) was billed 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 at lower cost and with less disruption than was possible with the rival Blu-ray disc system.

The HD DVD specification enables the recording, rewriting and play back of as much as 15 GB of data on a single-sided single-layer disc. Dual-layer HD DVD discs will store as much as 30 GB of data, which can hold as much as eight hours of high-definition movie content, according to Toshiba.

Both the BD and HD DVD formats promise to deliver the next phase in the evolution of surround sound.

Because of disc capacities of 30 GB and 50 GB respectively, the formats make room for soundtracks that promise to exceed the sound quality of the current 5.1- and 6.1-channel formats. That’s because the current formats are highly compressed, given a standard DVD’s far more limited data capacity.

Although the surround formats are new, you won’t have to replace your current 5.1-channel A/V receiver or HTiB to enjoy HD discs in discrete multichannel surround sound. That’s because HD DVD and BD players will support multiple audio formats, including mandatory formats compatible with current Dolby Digital and DTS 5.1 home theater systems. At least one of the compatible formats must be included on pre-recorded discs, although the choice of formats used on each disc will be up to individual movie studios.

As a result, the soundtracks of HD discs will be playable in discrete 5.1-channel surround through the installed base of 5.1-, 6.1- and 7.1-channel home-theater surround sound systems.

Consumers, however, might have to invest in a new audio component if they want to hear the enhancements promised by many of the high-bitrate surround sound formats approved for optional use in future HD disc players.

Some of the optional high-bitrate formats (that could potentially deliver more than 7.1 channels) will require the purchase of a new multi-channel surround sound decoder, which could be built into future A/V receivers. These receivers would need a new type of wide-band input to import the high-bit rate audio signal in digital form from the player.

For some consumers, however, it might not be necessary to replace their current receiver to enjoy high-resolution surround —if future HD disc players incorporate built-in high-bitrate decoders and 6.1- or 7.1-channel analog outputs. The outputs could be connected to receivers with 6.1- or 7.1-channel analog inputs.

Whatever the capabilities of future HD disc players, the consumer electronics industry is working to make the transition as seamless as possible for today’s home theater enthusiasts.

Most of the major motion picture studios have pledged software support for either the BD or HD DVD formats, effectively splitting the content market.

The BD camp won major credibility when it announced that Walt Disney Studios made a non-exclusive pledge to offer pre-recorded BD’s to support a hardware launch, either in 2005 or early 2006. This adds to the support pledged by Sony Pictures (Columbia Tri-Star), which is owned by one of the BD’s primary founders. In addition, Sony said it plans to make its next-generation video game console (PlayStation 3) capable of playing back BD movies.

Late in 2004, HD DVD made a serious bid for acceptance as next-generation optical 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 launch in late 2005.

At the 2005 International CES, several companies, led by Toshiba, announced plans to launch the first HD DVD players in the U.S. in the fourth quarter of 2005. Initial players, which are expected to sell for around $1,000, will playback both DVD and HD DVD media, and will output selectable digital resolution formats including 720p and 1080i. Early machines will not 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 an HD DVD recorder in 2006.

As Digital America went to press, BD backers had not announced a firm launch date for hardware in the U.S., although BD recorders have been available in Japan for the past two years. The group has said it plans to make hardware available either in 2005 or early 2006.

Backers of both formats announced the development of dual-layer disc technologies that will allow content to be stored on 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. 

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 2005, total U.S. penetration of digital television products is expected to be more than 34 million units, according to CEA estimates. In addition, starting at close to $1,000 each, the prices of early HD DVD and Blu-ray Disc players will be considerably higher than progressive-scan DVD players.

Due to the split camps among software producers, support for the first HD disc players is expected to be small (in the four figures) during the last few weeks of 2005 after the players are launched, according to market research firm In-Stat. Assuming the camps remain divided, the forecast ramps up to about 500,000 units worldwide in 2007, with the U.S. accounting for about 100,000, according to In-Stat estimates.