HD DVD News: Why Intel Supports the HD DVD Format

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Despite the protestations of the Blu-ray camp, the war over HD home video is not over - no where near over. As I have stated on this page many times, studio support is irrelevant to the war. Essentially, creating a product which has greater compatility with present DVD libraries and which is affordable will create a winning product. Warner’s defection was related to it wanting to swing its big balls around and try to be a king maker.

Regardless, many believe that the format which can proivde a replacement to current DVD players (HD DVD is support by the DVD forum) at a low cost is HD DVD; including tech giant Intel. I saw this over at the High Def Forum and decided to link to it here and provide exceprts because it is so well written and in plain terms describes the great technological difference between Blu-ray and HD DVD which make HD DVD a superior format. It is an older article but its reasoning is sound and should be evaluated. There is no reason why Warner’s shift to Blu-ray would make Intel shift its position that HD DVD is technially superior and a better product for consumers.

Employee Communications
July 19, 2006

High-definition digital video-which solution is best? The debates
continue, with proponents of both Blu-ray and HD DVD arguing
vociferously for their respective standards and solutions. It’s clearly
important to consumers to settle on a single standard, and Intel came
forward early on with support for HD DVD. We asked Steve Balogh,
director, Content Protection Entities, and Keith Rowe, initiatives
manager, Digital Home Content and Services Group, to tell us why. Here’s
their response.

(name has been removed), Employee Communications

________________________________

To understand why Intel supports the HD DVD standard, you need to look
at our business model. Think of the entire ecosystem from customer to
silicon producer. Intel’s business is selling more platforms.

We are not supporting HD DVD just for the sake of picking a format.
Having the next generation of DVD technology out there is in our best
interests, and we think HD DVD has the best chance of being successful.
It is the standard most compatible with previous formats, relies on
established materials and manufacturing processes, and provides the most
features for consumers.

When audio recording changed from analog tape format to digital compact
disk, owners had a strong incentive to upgrade. Many replaced large
portions of their existing audio libraries because of the extreme
difference in quality. Reliability was also a factor in driving the
content upgrade. Audio tapes break, and there is a perception that CDs
and DVDs last forever. In fact, they don’t-they will deteriorate, but
they do last much longer than audio tape.

We don’t think the same incentives exist for consumers to upgrade their
video collections from DVD to either of the high-definition standards.
This means that consumers’ preference is going to be for a device that
will accommodate their older media as well as new purchases. HD DVD has
a strong edge in this regard.

Both Blu-ray and HD DVD use blue laser rather than red. Blue laser has a
shorter wave length, and that means that bits of data can be stored in
less space on the media. Without getting too technical, one difference
in the two standards is the depth at which the laser reads and writes
information. In HD DVD, the depth is 0.6 mm, the same as for traditional
DVD drives. In Blu-ray, the laser reads and writes at 0.1 mm. This
difference means that Blu-ray can store more bits of data on the same
media.

But the shallower depth of the data also means that disks manufactured
to Blu-ray specifications are more susceptible to read errors from
scratches, dust, or fingerprints. The Blu-ray specification has
addressed this by using different materials for the disks, but this
requires a complete change in manufacturing processes.

Traditional CDs and DVDs are manufactured of aluminum and plastic with a
spin coat on top. This process has a high yield in manufacturing. HD DVD
uses this same manufacturing process. To counter potential reliability
problems with data stored only 0.1 mm below the surface of the
substrate, Blu-ray uses a film technique similar to that used in silicon
manufacture, adding a hard coat on top of a film similar to cellophane
(but of higher quality). The different materials mean that producing a
Blu-ray disk with reliability comparable to an HD DVD disk can add up to
35 percent to the cost of the disk.

CDs, DVDs, and HD DVDs are all the same size, both in circumference and
in depth. This allows them to use the same loading mechanisms. A single
physical drive can potentially accommodate all three media.

A lot has been made of the extra capacity of the Blu-ray format
standard, 25 GB per single-surface disk compared to 15 GB for a
single-surface HD DVD. But both formats support the data density
required for high-definition video, and we think the lower cost and
easier backward compatibility of the HD DVD make it a natural choice for
the consumer.

HD DVD opens up a world of new possibilities for consumers. While HD DVD
does offer the obvious high-fidelity video and audio experience (with
video resolutions of up to 1080p), it also offers a whole new set of
interactive features allowing for enhanced content, navigation, and more
for HD DVD movies. For example, only HD DVD mandates advanced
picture-in-picture capability, where other video, such as a director’s
commentary, can play on top of the movie. HD DVD also includes
networking functionality, which opens up possibilities including
downloading new trailers or updates from the Internet. Additionally, HD
DVD offers a “future-proof” hybrid disc option to consumers, ensuring
that the HD DVD discs they buy today will work in both their new HD DVD
players as well as their existing DVD players.

Furthermore, future versions of HD DVD will allow for legitimate
electronic copies of movies to be made to PCs or storage media, or even
transferred to handheld devices. Managed copy will be a feature within
the copy-protection system for both HD DVD and Blu-ray that gives
consumers the freedom to make copies of their discs to a hard drive or
home server, including Intel(r) Viiv(tm) technology-based PCs, and
potentially enjoy them in every room of the house over their home
networks.

Given the extensive consumer features, lower price point, PC and
consumer electronics capabilities, and manufacturability of HD DVD,
Intel believes this format best addresses the expectations consumers
will have with high-definition digital video.”

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10 Comments, Comment or Ping

  1. Aaron

    Haaa! Quoting an old position from 2006 that has changed now!

    Blu-ray anti-scratch coating has proven itself as longer lasting than the older DVD and HD-DVD technology. Netflix states that the average DVD only lasts 12 rentals before it dies due to abuse. The Blu-ray disks are lasting longer.

    Manufacturing costs are about equal now as well. Blu-ray quantity has driven down its cost with disks being made for movies, PS3 games, and PCs.

    PCs and Laptops are coming with Blu-ray recorders. HD-DVD recorders are nowhere to be seen except as an option in Toshiba laptops. Even the so called “dual format” recorders only record to Blu-ray disks while HD-DVD usage is as a reader only.

    The whole 2006 memo is funny when Paramount and Universal are the only things allowing HD-DVD a lingering rather than a fast death. Even those two studios will eventually release in Blu-ray when the dismal sales ranking of HD-DVD movies finally sinks in.

  2. Aaron

    Wait! Here’s a better one:

    “Warner supports HD-DVD”

    oh wait, wait, that was last year also!

    ROTFL, ROTF, ROTFL

  3. Bryce

    I want to know how you figure that studio support doesn’t matter. If Universal and Paramount switch to Blu-Ray, what will HD-DVD be releasing? Studio support is everything! Why would anyone purchase a media player that has no media to play? If even one of the two remaining major studios supporting HD-DVD defects to Blu-Ray, it would definately end the format war. Blu-Ray would have close to 90% of the entire High Definition home media library. The remaining studio would have no choice but to convert as well and Toshiba would be forced to resign its product. I’m sorry but you seem quite naive if you truly believe that studio support is irrelevant in the format war.

    And one more thing. Seeing as how technology changes at such a fast pace, it seems imprudent to be quoting a document that is nearly two years old. The entire landscape of the war has changed. Blu-Ray has essentially taken a stranglehold on the market since that document was written. In 2007 Blu-Ray media sales outpaced HD-DVD every single month. And since Warner went Blu-Ray exclusive, Blu-Ray has had over 80% of the sales every week and the top ten selling High Definition DVDs have been in the Blu-Ray format. It’s not even close anymore.
    I wish that Blu-Ray was less expensive like HD-DVD but just because HD-DVD is less expensive doesn’t mean it will win. Toshiba’s recent price cuts are a clear move of desperation. As a business analyst for the last 18 years, I can tell you it has all the signs of a desperate company grasping at straws to stay alive behind a dominant competitor. Sorry.

  4. admin

    I want to know how you figure that studio support doesn’t matter. If Universal and Paramount switch to Blu-Ray, what will HD-DVD be releasing? Studio support is everything! Why would anyone purchase a media player that has no media to play? If even one of the two remaining major studios supporting HD-DVD defects to Blu-Ray, it would definately end the format war. Blu-Ray would have close to 90% of the entire High Definition home media library. The remaining studio would have no choice but to convert as well and Toshiba would be forced to resign its product. I’m sorry but you seem quite naive if you truly believe that studio support is irrelevant in the format war.

    And one more thing. Seeing as how technology changes at such a fast pace, it seems imprudent to be quoting a document that is nearly two years old. The entire landscape of the war has changed. Blu-Ray has essentially taken a stranglehold on the market since that document was written. In 2007 Blu-Ray media sales outpaced HD-DVD every single month. And since Warner went Blu-Ray exclusive, Blu-Ray has had over 80% of the sales every week and the top ten selling High Definition DVDs have been in the Blu-Ray format. It’s not even close anymore.
    I wish that Blu-Ray was less expensive like HD-DVD but just because HD-DVD is less expensive doesn’t mean it will win. Toshiba’s recent price cuts are a clear move of desperation. As a business analyst for the last 18 years, I can tell you it has all the signs of a desperate company grasping at straws to stay alive behind a dominant competitor. Sorry.

    I concede that if all studios only make movies for Blu-ray, HD DVD will go the way of the Dodo. It would be stupid to think otherwise.

    My comment on studio support is centered on the prevailing opinion that because 70% of the studios are presently Blu-ray, HD DVD is dead. That comment is incorrect. HD DVD is not dead. Additionally, that comment is based on expereience with the NHS and Beta war - which is no way comparable to the HD DVD/Blu-ray war.

    I the 80’s Videocassette was the only way to get movies in the home. accordingly, if a studio did not produce a movie in beta, you could not watcdh it in the home. Today, however, there are more choices. If Warner does not release movies in HD DVD, I can watch it in HD on VOD, PPV, upconversion SD, etc. Accordingly, consumers can choose the best, most affordable format without regard for studio support - that is, until studios stop producing movies for that format. Regardless, HD DVD will continue to sell as upconverting DVD players.

    I understand many people think that HD DVDs pricing moves are desperate. What did you expect Toshiba to do? Raise prices? BD has a problem in that its main BD player, and the only Profile-proof BD player is PS3. Most consumers are not going to buy a PS3 to watch movies. Once consumers learn that their $500 BD player is obsolete and cannot take advantage of all the features in a movie or not, they will not be happy.

    The HDM market is only something like 4% of the entire Home video market. Until that number gets ALOT bigger, neither BD or HD DVD will :win”. The question is will either format gain that market share before digital downloads do.

    Thanks for your comments!

  5. admin

    Hey Aaron -

    The comments in the Intel memo are sound. I left it in tact

    thanks for your comments.

  6. Aaron

    Sorry if I went over the top at all, just found it humorous.

  7. Aaron

    On the “obsolete” comment, older Blu-ray players will still be able to play all the Blu-ray moves so they will not be obsolete. The only disadvantage will be that the old players will not be able to take advantage of new “special” content or web linking.

  8. admin

    On the “obsolete” comment, older Blu-ray players will still be able to play all the Blu-ray moves so they will not be obsolete. The only disadvantage will be that the old players will not be able to take advantage of new “special” content or web linking.

    Aren’t the internets about going over-the-top?

    On the obsolete comment, you are correct. I have read thread after threard by PS3 fanboyz (sorry best way to describe them) that the extra features do not matter. Maybe not to a fanboy, but the mass market likes them. What’s more, if my dad (average non-techie consumer) bought a BD palyer and found out he could not access PiP features of later releases he would be pissed that he spent $500 duckets on a player and can’t use the all the features of the format.

    Its just bad marketing.

    Plus, the PiP feature on HD DVD are pretty cool in movies like Miami Vice and Smokin’ Aces.

    Ultimately, the point is that it is a big weakness for BD.

    Additionally, keep an eye out for CH-DVD …

  9. Aaron

    CH-DVD is a copy of HD-DVD with some propriatary coding for the Chinese market only - introduced last summer, it hasn’t taken off. Not much market yet in China for Hi Def equipment.

    If you were hoping for a cheaper player:
    Good news for those looking for a HD-DVD player is that the going price on eBay is $50-$75. Those trying to sell for more are not getting any bids.

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