Topic: Film studios begin shipping next-gen DVDs

[Clive]

Tue Apr 18, 2006 3:18pm ET
 
LOS ANGELES (Reuters) - Two Hollywood studios on Tuesday started shipping DVDs in the high definition format, ushering in a new era of home viewing and a multi-billion dollar DVD standards war that has left Hollywood and the electronics industry divided.

Universal Studios Home Entertainment and Warner Home Video on Tuesday together shipped a total of 3 titles in the HD DVD format, championed by Toshiba Corp, weeks ahead of the launch of rival Blu-ray format, created by Sony Corp..

Both Blu-ray and HD DVD offer more capacity than current DVDs, but the groups' failure to reach a unified front has paved the way for a costly battle in the $24 billion home video market, like the VHS/Betamax war of 25 years ago that caused widespread customer confusion.

"A lot is to be said about getting it to market sooner, but it's the question of what you are going to play on it that matters," said Andy Parsons, a spokesman for Blu-ray, noting the majority of Hollywood's major studios have thrown their support behind Blu-ray.

Time Warner Inc's Warner shipped "The Last Samurai," and "The Phantom of the Opera," and Universal, a unit of General Electric Co's NBC Universal Inc, shipped "Serenity" on HD DVD to coincide with the debut of the first HD DVD player by Toshiba. Both studios will continue to roll out more titles in coming days, they said.

Sony expects to ship its first Blu-ray titles on May 23 with the first Blu-ray player by Samsung Corp. due out in late June, although Parsons said it may be possible to equip a computer with a Pioneer Corp. Blu-ray computer drive before then.

While Warner and Viacom Inc.'s Paramount Pictures support both formats and Universal, a unit of General Electric Co's NBC Universal Inc., is a sole supporter of HD DVD, the rest of Hollywood has sided with Blu-ray.

Walt Disney Co., News Corp's 20th Century Fox, Sony, Lionsgate Entertainment Corp. and Metro-Goldwyn-Mayer, a unit of a consortium led by Sony and the Weinstein Co, are all exclusive Blu-ray supporters.

Despite the standards war, Hollywood and the electronics companies are hoping the next-generation technologies will breathe new life into the slowing home video market.

Last month, Warner Home Video projected that motion picture industry sales of next-generation DVDs will reach as much as $750 million in the last quarter of this year.

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