The real reason behind the blue laser delays

**April Fools*

According to a former industry insider, there is more to the high definition wars and ongoing delays than what has met the eye of the public to date. The blue laser hold ups are more to do with marketing and the demise of the current Content Scrambling System or CSS. It's no secret that
this has been a thorn in the side of the industry for nearly a decade and they
finally see the opportunity to remove it once and for all. However, we knew this
already, but what we didn't know, is how eager and aggressive they are to see it
gone. They are in a position to call the shots and they know
it.

The content providers are using their clout, for all it is worth, to force the hand of the blue laser camps, with a plan to reshape the optical content market as we know it. They could not care less which format is used or even both. Their primary concern is the DVD and particularly, CSS encryption. As once the CSS encrypted discs can be phased out, copies could require permission and a fee.  As long as we have CSS, this is not a possibility. Apparently, rental agreements may have been a source of heartburn for Hollywood for quite some time. 

Over the past several months in closed door session, several of the major studios have 'suggested" to both blue laser camps, the creation of a hybrid disc that contains blue laser high def content (either camp) but also a standard CSS encrypted "DVD" version. You have heard this already, but the difference in what you read and what is being negotiated, is what is really causing the delay. The DVD must be phased out quickly as part of the concept. In the meantime, studios are dragging their feet with content as a means to pressure the hardware manufacturers. Put simply, the companies behind the Blu-ray disc oppose the move as the production of their discs differs significantly from HD-DVD and those DVD lines can be easily modified within the time frame suggested, in a cost effective manner when compared to tooling up for the Blu-ray disc lines, thus putting Blu-ray at a distinct disadvantage at the onset, maybe even killing the Blu-ray format. Due to this and the influence of Sony, the idea was scrapped and the rollout was as stated in the press. But there is more. As time went on, more studios and distributors began warming up to the idea, as they only have to produce a single disc from the get go for all upcoming films. This saves them money and at the same time "benefits" the consumer, as they are not forced to purchase a second HD version of the same movie in the future. Plus, they can set a new price schedule. They also feel this helps to offset the losses from piracy due to the easily defeated CSS encryption, which has cost them dearly for nearly a decade. In fact, they are salivating at the thought of dropping this encryption for the new more sophisticated AACS. Rental firms such as Netflix and Blockbuster are a 'problem" as well. With the new discs, any ripping of rentals would absolutely carry a cost to the renter and easily implemented. Even timeouts can be added etc for a tiered pricing scheme. Getting complicated now!  Many may not realize that discs supplied to Blockbuster, Netflix etc., are not the same as retail. Take a look in the DVD jacket next time you rent a film. Even the covers are custom made for each client. On the retail scene, this hybrid disc builds a blue laser library for the consumer, and the thinking is as the costs come into alignment for individuals, they can more easily make the switch, as they already have several films they can play. In the meantime, they are happy to buy the hybrid disc as it is still a "good value" as it is "future proof". Blue laser manufacturers should be pleased as the consumer is purchasing a product that eases migration. Having said that, the discs will be anywhere from 25-30 dollars each and the studios intend to "phase out" the standard DVD by the holiday season of 2008! This is a major drawback to negotiations. A forced situation if you think about it. But, several studies show that the consumer is not that fired up about HD. Coupled with the confusion of a blue laser format war and the fear of needing an expensive new television, and the whole concept is in danger of collapse. More pressure.

Theaters are addressed in the negotiations as well, as it is now known that the HD discs could be offered beginning in September, on the day of theater release, for sale to theater goers, by presenting a stub at the concession on the way in or out. Apparently, studios will offer the discs at significant discount to the theaters. What they do with the difference is up to them.

Interestingly, certain things start to make sense after we read this. Studios and hardware manufacturers that at first only supported Blu-ray, are announcing support for both formats, region coding to be removed, Japan cuts a deal for removal of the ICT flag. Then within one week, Toshiba announces a HD-DVD for release to retail in Japan. Yet, Blu-ray players are still a ways off! Once again, it looks as though Sony is going to be the loser in the long run! Time will tell.

You can read the story in it's entirety by following this link. Looks like once again, that technology was not the deciding factor, it was who could accommodate the film industry best. Perhaps we will still be able to purchase a Blu-ray writer for archival purposes, but the handwriting is on the wall for the Blu-ray player it seems.

Edit: Or maybe not, as this is our annual April Fools story! We hope you enjoyed it! 🙂

Source: CD Freaks