Blu-ray, HD DVD Target of EU Antitrust Probe

rfunches writes "The Wall Street Journal reports that EU antitrust regulators are turning up the heat on the Blu-ray and HD-DVD format consortiums. The European Commission has demanded evidence of Hollywood studios' communications and agreements on the new generation of DVD formats. From the article: 'The European Commission, the European Union's executive body, appears to be particularly interested in the activities of the Blu-ray group because of its dominance in Hollywood, according to people familiar with the situation. The commission is investigating whether improper tactics were used to suppress competition and persuade the studios to back their format.' The article points out that all of the major Hollywood studios except Universal are backing Blu-ray; Universal is backing HD-DVD. It also notes that while one industry watcher believes the first format to have an installed base of two million homes will come out on top, there were millions of Betamax units already sold when VHS won out in the format wars of the 80's."

Comments

Re:EU regulators out of control

[jackharrer]

Your're right. That war has nothing to do with monopoly, and shouldn't be touched by EU. Both groups have more than enough cash to persuade whoever they want to join their camp. Overall the one with better connections and marketing power will win.

Just my 2p.

Sauce for the goose

[Silver Sloth]

So, in /. terms

US vs M$ Anti Trust - good thing

EU vs Hollywood Anti Trust - bad thing

Or am I missing something here?

For there to be a winner

[Bullfish]

HDTV penetration has to be much higher in all markets. VHS and Beta both worked on all TV's made at the time. These only work on HDTVs (to get any benefit from the formats). The majority of TVs out there are still SD. Likely by the time HDTV penetration is high enough, another format will emerge, or hybrid players will be very common.

Re:For there to be a winner

[Paulrothrock]

Count me as one of those people who won't own an HD set until he's forced to. I just spent $400 on a 32" CRT TV, and I'm not about to go out and spend $700+ on a similarly sized HDTV. I don't watch sports or movies all that often, so what will this get me? My wife will be able to see every pore on the face of some reality TV tramp? I'll be able to make out the birthmark on Katie Sackhoff's shoulder? It doesn't add to the plot or production quality, and can often get in the way of it.

Let me put it this way: Until HDTV gives me something other than sub-microscopic picture quality, there's nothing I can't get from it that I can get from my video iPod.

Re:EU regulators out of control

[everphilski]

Just like there is no technical reason a Nintendo game can't run on a XBOX. It's all 1's and 0's right?

But regarding the Blu-Ray and HD DVD there are storage size and other technical differences, which various studios might find useful depending on the situation.

Not to mention those pesky licensing fees. Why license both? If you do, you have to raise prices, and what consumer wants that? heh.

Re:EU regulators out of control

[Neil]

I disagree - the regulators are ... regulating.

They are investigating whether the manufacturers of players have engaged in anti-competitive practices when doing deals with the movie studios and other content providers. If it turns out that one or other of the consortia have strong-armed or bribed many studios into supporting their format exclusively then then there isn't a proper free market in next-gen players and the best interests of consumers are not served - consumers will choose to buy the players for the format with the most content available for it, regardless of whether that is the best format for consumers when judged on a level playing field.