New Medium Enterprises Announces DVD Breakthrough

LONDON — The upcoming DVD format war might be a stalemate if New Medium Enterprises gets its way. The media technology company said today that it solved a technical production problem and can now produce cheap multiple-layer DVD discs containing both HD-DVD and Blu-ray formats.

“Current technologies to create multiple-layer discs mostly don’t work,” said NME Chief Technology Officer Eugene Levich. “We’ve created a technology for mass production of multiple layers that does not suffer from the well known problem of low yields.”

A low yield refers to the amount of discs that contain errors and are unusable for commercial purposes.

New Medium’s announcement comes after two Warner Bros. employees filed a patent application for a single disc to hold both HD-DVD and Blu-ray. The new device would also be able to play standard DVDs on the reverse side of the disc. A triple-standard disc would cost more to produce, but it would be cheaper than producing three copies of a given title.

“There’s no collision between Warner and us,” Levich said. “They patent the application, we are patenting the technology. These are complementary patents. I’m glad it’s happened. Warner opened our eyes, because it shows they really want to do this and create multi-format, multi-layer discs.”

NME estimates the production costs of a multi-layer DVD using its new technology will be approximately 9 cents, versus 6 cents for a standard single-layer disc.

With NME’s multiple-layer discs a reality, the heated arms race in the next-gen format war might be a moot battle. Hollywood studios have been choosing sides, with each supporting one of the two formats, or remaining ambivalent until the market determines a leader. High capacity DVDs are needed to store true hi-definition movies on one disc.

Putting a film on one disc in both formats eliminates consumer confusion and saves them money on multiple discs and DVD players. The studios save money as well because they don’t have to undergo costly manufacturing for competing formats.

Dutch DVD maker ODMS confirmed NME’s technical achievement and said it will have the first prototype production line based on NME’s technology up and running by early 2007.

NME also announced it has created a DVD player that is capable of reading up to 10 different layers on a single disc. Levich said he is interested in licensing that technology to mainstream consumer electronics companies.

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