Group Launches New DVD Security Features
Blu-Ray Consortium Launches New DVD Security Features to Entice Companies to
Adopt Technology
By GREG SANDOVAL
The Associated Press
http://abcnews.go.com/Business/print?id=1023458

Aug. 9, 2005 - One of the two groups vying to produce the next generation of
DVDs rolled out new security features Tuesday to entice entertainment and
electronics companies to adopt its technology.

The Blu-ray Disc Association (BDA), a partnership of electronics
manufacturers and Hollywood studios including Hewlett-Packard Co. and 20th
Century Fox, said it plans to fight piracy by embedding an identification
mark on movies, music and video games that can only be read by equipment
that carry its technology.

"It's been a promise since day one: that we're committed to offering the
strongest content management system," said Marty Gordon, vice president of
Phillips Electronics and a Blu-ray spokesman.

The new security features are the latest volley in the battle between
Blu-ray and a competing group, HD-DVD, which is backed by such companies as
Paramount Pictures, Universal Studios, Toshiba Corp. and Sanyo Electric.

Eventually, the two sides must convince DVD fans.

Under Blu-ray's plan, the public would be asked to purchase new Blu-ray disc
players even while their current DVD players work fine. For that to fly,
consumers must be convinced that there are clear benefits to the new
technologies.

In addition to the security measures that HD-DVD and Blu-ray are devising as
they compete for support in Hollywood, both are promising increased storage
capacity and resolution superior enough to get the most out of
high-definition television sets.

"Security won't matter to consumers," said Laura Behrens, an analyst with
research group Gartner Inc. "The benefits have to be compelling enough to
outweigh the costs. What we've seen has not been a slam dunk either way.
Both are beautiful formats but there's a lot of beautiful content out there.
Frankly, most people don't care. They want to know what they are watching is
watchable."

Because Blu-ray discs, for example, won't play on traditional DVD players,
that could frustrate consumers who have grown accustomed to sharing movies
with friends or making backup copies.

Gordon offered one potential fix: Studios could choose to create hybrid
discs that function on both DVD and Blu-ray players and can be configured to
allow copying.

Current DVDs are easily hacked, allowing them to be pirated at a cost to the
movie industry of more than $3 billion annually, according to Blu-ray.

The Blu-ray technology would prevent unauthorized users from mass producing
discs on stolen disc-making equipment by requiring authorization codes.
Blu-ray-coded discs will also contain a feature that would not play on
machines that have been tampered with.

Skeptics have little faith that any security measure can protect digital
content.

The electronics companies that make disc players and the studios that
provide content may end up having to make versions for both Blu-ray and
HD-DVD formats, which could cost billions. That's why many in Hollywood are
hoping for a resolution.

Joshua Martin, an IDC research analyst, does not think Blu-ray's new
anti-piracy features will necessarily pull support away from HD-DVD.

"A lot of content providers are not on board because they are worried about
disc costs. I think they'll remain skeptical until these issues are
resolved," Martin said.

Blu-ray's technology can store more information than HD-DVD, but it would
also require disc manufacturers to build new factories.

HD-DVD proponents, meanwhile, claim their format would be cheaper to produce
because it relies on technology that more closely resembles current DVDs.

Andrew Setos, president of engineering for Fox Entertainment Group, which
supports Blu-ray, said the reason HD-DVD costs less is because the group's
solution is "low tech."

"With any new, cutting-edge technology, things are more expensive," Setos
said. "As time goes on they then get very affordable."

On the Net:

Blu-ray: http://www.blu-ray.com

HD-DVD: http://www.hddvdprg.com

Copyright 2005 The Associated Press. All rights reserved. This material may
not be published, broadcast, rewritten, or redistributed.

Copyright © 2005 ABC News Internet Ventures



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