DVD Multi...................................
ohio.com
Published Monday, November 13, 2000,
in the Akron Beacon Journal.
DVD recorders in battle for consumers
In industry with no standard, fans of TV shows, home movies will be deciding which format stays
BY TAMARA CHUANG
Orange County Register
In what could become a replay of the VHS vs. Betamax war of the early '80s, three competing varieties of DVD recorders are vying to replace VCRs in millions of American living rooms.
Starting this fall, consumers can record hours and hours of cable movies or home videos onto a 5-inch disc, using a rewritable DVD device that costs, gulp, $3,999.
That first device is the DVD-RAM, which soon will face competition from the DVD-RW and DVD+RW, due out in the next few months. All three formats are incompatible, and all are pricey. At least for now. The one that wins the hearts and minds of American consumers likely will go into mass production at a much more affordable price.
Until that happens, consumer confusion is inevitable.
Industry skirmishes aren't new in the consumer-electronics industry. The last discord was five years ago with the DVD player. But in that case, manufacturers settled differences before the players were released to consumers.
``It would be more beneficial for the manufacturers to reach an agreement to try and narrow it down to one format,'' said Mary Joy Scafidi, an Irvine-based senior analyst with International Data Corp. One standard would keep manufacturing costs down and make it easier for the movie studios that otherwise will have to issue prerecorded discs in three or more formats.
Seeking a standard
The electronics industry is pushing for a DVD Multi standard, which would be adopted by makers of the three formats. If that happens, consumers need only to buy one machine and, as long as it had the DVD Multi logo, it would be compatible with all DVD technologies. But the industry still is working on specifications and so far, no manufacturer has committed to making such a device.
But as when JVC's VHS players faced off against Sony's Betamax, the ultimate decision on which DVD recorder will triumph could be up to consumers. The winner in the battle for consumers' favor would lead a market totaling more than $4 billion by 2004.
``This would be a repeat of VHS and Beta,'' said Michelle Abraham, a senior analyst who tracks the DVD industry for Cahners In-Stat Group. ``In that era, it was more or less the consumer who voted with what they bought.''
She's placing her bets on the DVD Multi player, which she thinks could be available as soon as next year.
Too expensive
However, format confusion may not be the main drawback that will keep consumers from racing to electronics stores this fall, said Gary Arluck, manager for electronics retailer Digital Ear in Tustin, Calif. It's the price.
``Very, very few customers are interested. I think the main reason is that it's an expensive toy,'' Arluck said.
Arluck predicts rewritable DVDs will follow the pattern of rewritable CD players, which started selling at $4,000 three years ago. In the first year, Digital Ear sold only two. Now, the price for a three-disc recorder is about $700 and sales are hot, he said.
``I think when you see DVD recorders hit a $995 street price, we'll start seeing sales. But not until then,'' he said.
Recordable DVD players have been around since 1997 but at a $15,000-plus price tag that put them out of reach for the average consumer. But this technology allowed users to record only once.
Rewritable DVD recorders, with reusable discs, are intended for recording home movies and TV programs, much like the VCR. All the formats -- DVD-RAM, DVD-RW and DVD+RW - are designed to force consumers to comply with copyright laws. Consumers won't be able to record from copy-protected discs, such as those produced by movie studios.
Prices are already dropping. Panasonic's rewritable player, using the DVD-RAM standard, was released in September with a $3,999 price tag. Pioneer Electronic's DVD-RW recorder, promised by Christmas, will sell for $2,500 to $3,000 and the Long Beach company hopes to release a sub-$1,000 rewritable player by Christmas 2001.
No price has been announced for the Philips DVD+RW, due out next year.
230 manufacturers
The incompatible formats for rewritable DVD players have emerged despite the efforts of the DVD Forum, a nonbinding industry group representing 230 manufacturers.
The forum attempts to find a balance between business competition and consumers who just want to play any DVD disc on their machine.
Disagreements within the forum have slowed down the marketing of new DVD devices such as Pioneer's DVD-RW.
``If there was an agreement by all of the manufacturers on one format, there's no doubt it would have been out by now,'' said Chris Walker, Pioneer's spokesman.
Pioneer's rewritable player has taken four years to get to market, mostly because of industry skirmishes, he said.
The DVD Forum has endorsed two of the competing formats: DVD-RW and DVD-RAM.
But Philips bypassed the DVD Forum and plans to release the DVD+RW recorder without industry support. The machine will be compatible with older DVD players, but not the other rewritable formats.
``We'd enjoy the backing of the DVD Forum, but we don't necessarily need it,'' Gordon said. ``We think it's important to get the consumers' approval, and we think consumers are going to cast their vote based on compatibility.''
The three DVD players look similar: sturdy box-shaped gadgets that could fit nicely in the spot your VCR now occupies. All record on 4.7-gigabyte reusable discs, which hold up to six hours' worth of video and cost up to $35.
Panasonic's discs are enclosed in a plastic case that protects them during recording. Its format is compatible with DVD-RAM drives already proliferating in home computers.
Philips' and Pioneer's discs look the same: shiny discs like an audio CD, but neither works in the other's machine.
Panasonic's recorder isn't backward compatible, meaning that its recorded discs can't be played on current DVD players. Pioneer, which released its DVD recorders in Japan last December, is waiting for the DVD Forum's final approval of its plans for backward originators of the Betamax, isn't sure which will succeed. Sony put its support behind the Philips and Pioneer formats, but isn't yet marketing any DVD machines that use them.
``Ultimately to Sony, the most important thing is preserving consumers' investment in CD technology. But because the situation is cloudy, we have not announced any products,'' said Brian Levine, Sony's vice president of corporate communications. |
