DVDGuy’s Blog @ Digital Digest

So I sent my PS3 back for repairs on Wednesday. I had to do it because the wireless controller/remote drop-out problem was driving me nuts. My old PS3 didn’t have this issue, so I’m hoping the next PS3 I get won’t have it either. Microsoft’s 6 day turn-around for my Xbox 360 repair is starting to look pretty good, especially considering that I got my own 360 back and not somebody else’s slightly broken, but refurbished, PS3. The news items are a bit light this week, no doubt the focus is still on the economic meltdown that is happening around the world.

And despite the economic uncertainty, I bought myself a new monitor this week, a 24″ entry level model from Dell. It’s not the best monitor, the 16:9 ratio is a bit weird compared to other monitors (as is the only 1080 line resolution), but it does have HDMI, is perfect for connecting 1080p devices such as PS3s and Xbox 360s, and of course, there’s the price. I only paid $USD 160 for it (current price is $399) due to a stuff up on Dell’s part, and for that money, I can’t complain too much about the monitor’s deficiencies (of which there are a few, but nothing that I can’t live with, even at the regular pricing of $399). Bargain hunting is now a small hobby of mine, and it feels great to pick one up.

Anyway, ket’s start with copyright news. The RealDVD vs MPAA case continues, and I wrote what I thought about it in a blog entry mid-week. I wrote my piece after the Judge in the case temporarily suspended sales of RealDVD, pending the outcome of the case perhaps. My opinion was that the case is more about the MPAA (and its members) trying to protect their own future marketing ideas on Managed Copy, and getting peeved because Real Networks beat them to the punch. I also went through the legal arguments about the legality of RealDVD, and I really can’t see why it is illegal at all. 

Wal-Mart will have to keep on paying for their mistake of choosing to use DRM

And shortly after I wrote my piece, an article with similar opinions emerged from the Electronic Frontier Foundation, in which they also said that Hollywood’s hate for RealDVD is not due to piracy. I just hope the Judge in the case sees this point of view too, because I think it’s very important that Real Networks win this case. If DRM is really just to protect your licensing cash cow, then that’s more reason to kill it off ASAP.

Wal-Mart’s DRM fiasco, the latest of many, is taking a turn for the predictable. Wal-Mart has backed down and now will ensure their DRM authentication servers are kept online so that people’s DRM-infested files will remain working, no doubt after legal advice from their lawyers. The disadvantages of online based DRM is shown quite clearly here, because it’s not just the consumer that suffers from DRM infection, but the content sellers are obligated to maintain legacy DRM servers forever at a huge cost in the long run (and will have to continue paying license fees for it too, which I gather was the whole point behind DRM in the first place).

Onto HD news, I found this really interesting article on the process and cost of Blu-ray replication and licensing. What with various licensing fees for the A/V technology involved, the higher cost of replication, the AACS licensing fees, producing Blu-ray discs in small quantities such as 1,000 units could cost up to $14 (for BD-50 discs). This goes down to a much smaller figure for larger quantities, only $2.75, and so you start to wonder why Blu-ray movies cost so much more than their DVD counterparts. One thing is clear though, Blu-ray’s mandatory requirement for AACS (compared to DVD’s CSS and HD DVD’s AACS being optional), plus the higher manufacturing costs, means that Blu-ray is not friendly for independent producers, who will most likely have to rely on DVD even if they shoot their stuff in HD.

The higher cost of Blu-ray is forcing NetFlix to raise their monthly rental fees, but only by a single dollar. But in the current climate, every dollar counts I suppose. And Blu-ray discs could get even more expensive, although with much more storage space, if Sanyo’s 100 GB Blu-ray disc ever makes it to full production.

Iron Man Blu-ray is breaking all records

But cost of otherwise, last week was Blu-ray’s best week since launch, thanks altogether to the movie Iron Man. According to Nielsen VideoScan figures which I have posted here, Blu-ray sales shot up 145% compared to last week thanks to Iron Man, which out-sold the next most popular title on Blu-ray for the week by a ratio of 7 to 1. Blu-ray’s sales ratio to DVD was at a record high 15%, double that of normal weeks. The actual numbers for discs sold is a bit more sober in comparison though. Iron Man on DVD sold 7.2 million copies, while the Blu-ray version sold 500,000 – that’s a ratio of about 7%. This is an improvement compared to when HD DVD was still in the game, and I remember the disc volume ratio being closer to 3% back then. But Iron Man being only a single title, and one that propelled Blu-ray to a record week at that, so the average ratio may be closer to 4 or 5%. The Dark Knight already promises to beat Iron Man’s record, if the Amazon sales charts are anything to go by.

The Australian dollar crashing won't help Blu-ray sales

Not going too well though is Blu-ray sales in Australia. Australia is actually one of the few countries outside of the US and Japan to fully embrace Blu-ray hardware thanks to the PS3’s popularity and relatively low hardware prices (due to our proximity to Asia). But due to high movie prices (at one point, the retail pricing of Blu-ray movies were at $USD 50), importing movies from the US and even UK has been a cheaper way to get into Blu-ray. Not so anymore, after the Aussie dollar crashed this week, and with shipping, getting movies from the US is up from an average of $AUD 23 to now basically the same as local pricing ($AUD 40). A couple of months ago I even imported some Blu-ray movies from the US for sale here in Australia (on eBay), but that looks quite a silly thing to do now. If discussions on this issue in this Australian forum is anything to go by, Blu-ray imports will significantly drop in the foreseeable future. (But as someone who’s income in mainly in US dollars, it’s a good time for me!)

And finally in gaming, it’s another week so we had yet another story on Blu-ray coming to the Xbox 360, and yet another denial from Microsoft about it. I promised several months ago in the forum that I would never post another Blu-ray coming to Xbox 360 story, after the last ten I’ve posted have all turned out to be completely rubbish, just like this recent one.

This pic of an Xbox 360 Blu-ray player is as fake as the rumours about it

But this time I really believe it could be true, and once again, I was fooled. I once again question why people need to make up these stories, perhaps because PS3 fanboys would love the Xbox 360 to get Blu-ray to prove that Sony’s decision to include it was justified (that’s debatable because Blu-ray’s added cost and development time may cause the PS3 to lose the curr-gen console war, or at least not win it as dramatically as the PS2 did last-gen). The Xbox 360 has 11 million users in the US alone, so getting it to support Blu-ray would definitely be a major coup for Sony (but why would Microsoft want that?). I just can’t see it happening though, not until we see a sexier, quieter Xbox 360, because at this moment if the Xbox 360 gets Blu-ray, you only have to compare it to Sony’s effort and there is only one winner – the PS3. Why would Microsoft want to make this comparison anyway, unless they are coming out with a piece of kit that’s better suited to home theatre usage as the PS3. And then there’s the fact that the PS3 uses Blu-ray for games, and the Xbox 360 cannot, so that’s another point of comparison which the Redmond firm does not want. And with Blu-ray’s popularity not exactly making headlines (not the good kind anyway), it feels like Blu-ray needs the 360 more than the 360 needs it. So will Blu-ray come to the Xbox 360? I think it’s wishful thinking on part of many at the moment, but then again, wishful thinking has a way of becoming reality if enough people wish for it.

Okay, that’s all I’ve got this week. See you next week.