Battle over nest-generation DVDs.

In a few years, sales of DVDs are expected to reach maturity. Content providers are already gearing up for the next generation of higher-density discs, to be introduced by 2007. Two formats are in contention to become the industry standard red lasers, the other novel blue-violet lasers.

The red-laser contender is the high-density DVD (HD-DVD), which has the same structure as a traditional DVD. It can have a single or dual layers, each 0.6 mm thick and holding 15 GB of data. HD-DVD is supported by the DVD Forum, an international technical association Of hardware manufacturers, software firms, and Sony. HD-DVD can be produced with current DVD manufacturing equipment, though some technical upgrades may be required, and its new mastering process will need new capital investment.

The blue-laser Blu-Ray Disc (BD) has higher capacity--25 GB on a single layer or 50 GB with dual layers. But it has a new physical design, consisting of a 1.1-mm substrate with a 0.1-mm coating. Current DVD injection molding and sputtering equipment can be used for BD, but it requires a brand-new mastering process. BD, but it requires a brand-new mastering process. BD is supported by 10 major players, including Sony, Matsushita, Philips, and Pioneer. Dell, Hewlett-Packard, and LG Electronics will offer products based on Blu-Ray technology.

Sony is running a BD pilot manufacturing line in Shizuoka, Japan. Mike Fidler, Sony senior v.p. for the Blu-Ray Disc Group, says over a quarter-million single-layer discs have been produced in 5-sec cycle times.

HD-DVD pilot lines have been established by Memorytech in Japan and Cinram in Olyphant, Pa. (at the former Warner Advanced Media Operations plant). The latter line can also produce BD discs. Dominick Dalla Verde, Cinram senior director of preproduction, says its line has run HD-DVDs in 7-sec cycles, though that is not considered acceptable for mass production.