DISNEY BEHIND BLU-RAY DVDS WAR OF COMPETING TECHNOLOGIES?

Byline: Greg Hernandez Staff Writer

BURBANK - The Walt Disney Co. will back the high-definition Blu-ray disc developed by Sony over a competing HD DVD format, setting in place a high-stakes battle between Hollywood's leading studios with only one format likely to survive.

Disney's announcement comes just a week after rival studios Warner Bros., Paramount and Universal threw their backing behind HD DVD developed by Toshiba Corp., NEC and Sanyo.

With Metro-Goldwyn-Mayer is in the process of being purchased by Sony, it will be in the Blu-ray camp while 20th Century Fox has yet to announce its preference. All the studios agreed to nonexclusive deals.

With two powerful camps behind each of the high-definition technologies, which are incompatible with each other, there are fears that the booming home entertainment industry could be in for a battle shades of the 1980s showdown between VHS and Betamax although existing DVD libraries can be played on both HD DVD and Blu-ray hardware.

``We still believe the avoidance of a format war is the most important factor,'' said Bob Chapek, president of Disney's Buena Vista Home Entertainment. ``There's nothing we'd like more than to have format unification. Our hope is the format developers themselves can find a way to unify so the next generation product is not complicated by multiple format launches. We think ultimately the consumer and their needs will determine what wins.''

Disney, which accounts for roughly 20 percent of the home video market, announced Wednesday that it will become a member of the Board of Directors of the Blu-ray Disc Association.

``The BDA is obviously very happy that Disney is supporting Blu-ray Disc, and we are excited to be able to draw from their vast and entertaining portfolio of content,'' stated Maureen Weber, general manager of optical storage solutions business for Hewlett Packard. Chapek said Blu- ray helps set the stage for the next generation of digital video disc with greater interactive ability with its ``excellent combination of advanced functionality, picture quality, data capacity, room for future growth, and advanced rights management for new consumer usage options.''

A single-layer Blu-ray Disc will hold up to 25 gigabytes of data, and a dual-layer Blu-ray disc will hold up to 50 gigabytes of data. Chapek said this greater storage capacity enables the Blu-ray disc to store up to five times the amount of content that is possible with current DVDs.

Officials at Warners, Universal and Paramount studios said last week that a key factor in the choice of HD DVD is its enhanced content-protection features. It also promises such things as enhanced sound and picture quality, greater storage capacity and increased interactivity.

Disney, which said its decision was a long time in the making, had been working with both format developers in recent years in an effort to make sure their requirements were met. They will begin releasing content nonexclusively in that format when Blu-ray hardware launches in the North America and Japan.

``We see this action as an exciting opportunity to support the latest advancement in home entertainment technology,'' said Dennis Maguire, President of Buena Vista Home Entertainment International. ``For our studio, it provides us with the chance to add unprecedented features and interactivity to the home environment, and thus continuing to enhance the consumers' love affair with movies.''

Greg Hernandez, [phone]

greg.hernandez(at)dailynews.com