Another high-def format to launch

Cheaper VMD uses red laser technology

By Susanne Ault -- Video Business, 5/12/2006

MAY 12 | New Medium Enterprises, the London-based marketer of another high-definition DVD format, has signed replication and hardware deals that it claims will allow it to introduce its Versatile Multilayer Disc (VMD) to the U.S. this fall. So far, though, it’s mum on software support.

Developed out of a merger with Chinese high-def format EVD, VMD is based on red-laser technology. Because it is modeled on current DVD production systems, VMD backers promise to attract customers with bargain pricing.

New Medium Enterprises has pacted with China hardware supplier Beijing E-World to deliver the first VMD-compatible hardware. One EVD-VMD player, to be priced at $150, was unveiled several weeks ago at the tech trade show CeBIT in Germany. The player also is backward compatible with regular DVDs.

NME has pledged that 100 VMD titles will bow at about $25 apiece by September, but it will not identify the content.

NME last week signed Netherlands firm VDL-ODMS to build VMD production lines.

To establish its U.S. presence, NME tapped Jeff Burrow, a former DirecTV exec, as its executive VP of North America.

“When I was first introduced to [NME], I wondered to myself if a third format could make it here,” said Burrow. “But I was amazed at the disc quality, and it was interesting they could manufacture the players so inexpensively. Instead of looking at it like we’re competitive with Blu-ray, we are looking at it as a next step DVD player.”

Burrow hopes VMD can find a niche with customers who want to enjoy high-def films now but are waiting for prices to come down on Blu-ray and HD DVD before investing.

Currently, the cheapest HD DVD player option is Toshiba’s $499 model. In June, $1,000 Blu-ray players should hit shelves. Both HD DVD and Blu-ray utilize blue-laser technology, which requires certain changes to today’s standard-definition DVD authoring systems.

VMD is one of several red-laser based HD formats emerging around the globe that could further cloud the already murky outlook for high-def optical discs.

The most established of the red-laser formats is Microsoft’s Windows Media Video/HD.

Though the software giant has done little to promote the format in the U.S., a handful of movie titles, as well as some adult fare, have released titles in WMV/HD here, and several dozen have appeared in Europe, where the format has gained some traction.

Earlier this year, the first set-top DVD players capable of playing WMV/HD-encoded discs appeared in the U.S.

Two Taiwanese hardware makers, MiTac and Lite-On IT recently began selling the Taiwan government-backed Forward Versatile Disc (FVD) format in mainland China, and the format’s backers have hinted at plans to try to introduce it in the U.S.

China has two other home-grown red laser formats, Holographic Versatile Disc (HVD) and High-Definition Video Disc (HDVD) that could also be candidates for export.

All the red-laser formats use some type of high-level compression to squeeze high-def movies onto a 5GB or 9GB disc.

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