Archive for the ‘Electronics’ Category

The HD Format War: End Game?

Wednesday, January 9th, 2008

So it’s a couple of days after Warner’s shock decision, and I think people have not yet fully digested (pun unintended) what has happened yet, and what this will mean.

The latest rumours are suggesting that Paramount will now ditch HD DVD as well and go back to Blu-ray, and after the last round up rumours turned out to be true in regards to Warner, you can’t rule anything out at this stage. If Paramount does ditch HD DVD, then I think HD DVD will not survive the month.

While I’ve already touched on the subject in my earlier blogpost about the Warner decision, but for this post, I want to concentrate on the future of HD, with the assumption that HD DVD had gone the way of the Dodo. What will we, as consumers, have to look forward to in the Blu-ray dominated market? Of course, these are just educated guesses, starting the assumption that HD DVD will fold, so please bear with me.

First of all, I think Toshiba will start making Blu-ray players, maybe dual-format players to cater to some movies which may still be HD DVD exclusive. They may not be happy with the outcome, but they are not going to destroy their promising consumer electronics division just to hold a grudge. Microsoft has shielded themselves from the format war by being quite distant to it. Yes, the would prefer HD DVD have won, but they’ve left enough room to wiggle just in case HD DVD didn’t win. A Blu-ray add-on drive is a possibility, a dual-format drive as an upgrade to the existing HD DVD add-on drive might also happen.

Sony has taken a huge risk in tying the success of the PS3 with Blu-ray. If either failed, both fails, but if either wins, both wins. It’s an “all or nothing” strategy that appears to have succeeded, although not without losing significant ground in the console war, to the Xbox 360. When you have so much to lose, you end up with the will to win at all cost – something that Toshiba and Microsoft lacked.

A reminder again that this is all just an assumption and some guessing, not facts, and so we come to the assumed conclusion that Blu-ray wins the day. The market will be flooded in 2008 with Profile 1.1 players, dubbed “Bonus View”. If you want to access all the bonus features of a Blu-ray disc, you will have to throw out your Profile 1.0 player (about a million sold in the US so far) and upgrade to the new 1.1 player. Us consumers are fairly predictable – if there’s an upgrade that gives us what appears to be more features, we will often do so, because nobody wants to be left behind. Then in 2009, “BD-Live” (Internet connectivity) will be introduced in discs and then a whole new range of Profile 2.0 “BD-Live” players will be on the market. Time to upgrade again. You can of course avoid all of this by buying the PS3, as recommended by my Blu-ray and HD DVD Buyer’s Guide, as it can be theoretically upgraded in software to BD-Live and beyond (more than 3 different profiles? Now that’s a scary thought). By the time “BD-Live” players are everywhere, you won’t see too many “Bonus View” players for sale at all (except perhaps on eBay), so if you don’t want to be left behind, you have to upgrade again. This cycle might continue on if the market (that is, us consumers) accept it, since every upgrade means extending the time it takes for hardware prices to bottom out, as it did quite quickly with DVDs.

On the region and copy protection front, BD+ will ensure hacking is limited to no more than specific discs and specific players. It will be highly inefficient for anybody to try and hack BD+ for all Blu-ray titles that uses it, meaning that for the first time, there is actually a copy protection mechanism that works (something that DVD does not have, although not for want of trying by the studios). This will eliminate the rent-and-copy crowd that is quite a large group when it comes to DVDs, which eats into disc sale profits and has been the ire of the studios for quite a while now. Discs will get managed copy, which means you can make (mostly inferior quality) DRM’d copies of discs for use in your iPod or PSP, or maybe even a DVD version. This is actually a good thing for consumers, except the cost of these different versions of the film will have been included in the cost of the disc and passed onto consumers (hopefully, there will be “standard” and “copy-enabled” versions of the same movie being released at the same time, with different pricing).

And with BD+ in place, the typical way of getting region-free playback on PCs will no longer be valid, and so with strict hardware control and application of the new digital copy protection laws that most countries now have, region-free players will be a thing of the past if not due to technical difficulties, then due to legal difficulties. For the first time, studios now have a solid region control system (again, something that DVDs do not have) which allows them to delay releases in regions and create pricing differentials depending on local economic conditions. The US will get movies quickly and cheaply because that’s where the competition is, while the rest of the world will get movies when the rental, cable TV showing period is over, and at a price that seems awfully high compared to the US.

So Blu-ray looks set to fix some of the “mistakes” that DVDs made, namely low hardware prices far too quickly, lack of proper region control and ineffective copy protection. It’s the optical format studios have been dreaming about since before DVD, not because of improved quality or any of the things we consumers look for, but for the added security of being able to control how and when people will be able to use your content. Of course, consumers will have to allow them to get away with it, and that’s not a certainty, especially with the hostility that has been shown towards audio DRM. There is still a chance that we can make Blu-ray a more consumer friendly format, but only if we put in the effort to make the studios know how we feel about region coding or DRM or any of these anti-consumer gimmicks, instead of accepting “BD-Live” as just another upgrade we had to have.

Warner Goes Blu – The Good, the Bad and the Ugly

Saturday, January 5th, 2008

So by now you all must have heard about Warner Brother’s decision to go Blu-ray exclusive from May 2008. Make no mistake about it, this is a huge blow for HD DVD. Almost a third of all HD DVD releases come from Warner, and without their releases, the  number of HD DVD releases will look quite poor compared to Blu-ray. HD DVD still has a chance though, but it depends on Paramount and Universal sticking with the format and on one of the Blu-ray exclusive studios to go red (or at least neutral). But what does this all mean for the HD consumer?

The good news is that, if HD DVD decides to throw in the towel, the HD format war will effectively end and HD format confusion will be a thing of the past. This is good for the type of consumers that don’t really know or care about formats, and simply want to stick a disc in the player and press play. It will also help retail outlets as their floor space is limited and having two formats makes things a lot more difficult. Even for HD DVD owners, the short term might be good in that Warner HD DVD prices might drop in order to clear stock (and if Paramount/Universal follows, their movies will be discounted too), so there’s some bargains to be picked up soon.

The bad new for consumers is that a victory for Blu-ray is a victory for region-control and DRM. Reading the forums, even some Blu-ray supporters are not entirely happy if this leads to Warner adding region control to their discs. For those not lucky enough to live in a Blu-ray Region A zone (US, Canada), we are stuck with poor selections, high prices and late releases (the release date for Ratatouille has been pushed back yet again to March, even though the DVD version will be released locally next week and people in Region A has been able to enjoy the movie for months now). Without the format war, there will also be less Buy One Get One Free sales, and the Blu-ray people have already hinted at stopping the hardware price drops, even before the Warner announcement. And what about Profile 2.0? There is no Blu-ray player on the market that can match the feature set of a $99 HD DVD player, and with HD DVD possibly fading away, there won’t be any pressure for the Blu-ray people to release cheap 2.0 players anytime soon or even make 2.0 mandatory. And when 2.0 players are eventually released, will we see them at $99, or will it be closer to $999? So higher hardware and movie prices might be something we may have to accept, and that’s not really good for consumers at all.

And the ugly? Blu-ray also supports more DRM, including BD+. This will mean that people wanting to backup their movies or to convert them to a more portable format will find things very difficult indeed. The AACS has promised the managed copy function, but only at the insistence of the HD DVD supporters (since Blu-ray also uses AACS, they went along reluctantly as well). With managed copy, you are allowed to make a limited number of copies of the movie, including for portable devices – it’s the only part of the AACS DRM that is slightly consumer friendly. Microsoft and HP specifically forced managed copy to be implemented as a mandatory feature because their vision of the home computer is all about networking and home servers – managed copy allows this to become a reality. But with the HD DVD supporters out of the picture, will be ever see managed copy or will it be scrapped in favour or more hard-line DRM that will prevent server based movie playback? Nobody knows.

It’s probably a bit premature to eulogise the HD DVD format, because I feel there are still some twist and turns in the coming months. But for what it’s worth, having HD DVD has forced movie and player prices to drop much faster than expected. It has also forced managed copy to be accepted by Blu-ray (whether they implement it or not, is another question). The majority of HD DVD releases being 30 GB has meant that Blu-ray, initially favouring 25 GB releases, has ramped up their support for BD-50 discs. HD DVD’s use of next-gen video codecs has also forced Blu-ray to implement MPEG-4 AVC support faster than they would have liked, since they originally preferred the inferior MPEG-2 format. And even today, HD DVD’s interactive features lead the way, forcing Blu-ray to speed up their profile 1.1 and 2.0 release schedules. My opinion is that HD DVD has had a far more positive effect on the HD market than Blu-ray with their Profile, region and DRM confusion, so it’s a shame to see Warner abandon a format that wanted to do the right thing by the consumer.

So having one HD format is great, but that one format being the region control and DRM loving Blu-ray format might not be so great. One can only hope that Warner continues their region-free approach to releases, and that it forces other Blu-ray studios to consider doing the same. If HD DVD will truly end as a format, then I hope the current HD DVD backers will get on-board Blu-ray and force the BDA to implement some of the best things about HD DVD, like one single profile, region-free movies, less DRM, managed copy and cheaper hardware prices.

The next few months will be very interesting indeed…

Weekly News Roundup and the Year in Review

Sunday, December 30th, 2007

So here we are, the very last blog entry of 2007. Not much in the news recently (not that I’ve been paying any attention), so I’ve supplemented this otherwise short blog with a brief look back at 2007, should be interesting.

But to get the news stuff out of the way first.

In copyright news, Antigua has won a fight against the US which will now allow it to (once again) become a pirate and gambling haven. Or something like that. While this decision has a lot to do with online gambling, it also has copyright implications. While I can’t talk about it directly on this website, many people are aware that Antigua is home to a particular software that does certain things to protected video content. It now seem that this software, and software like it, might have found a safe place to reside without being subject to copyright laws of other countries. But a safe home might not be needed for much longer, as DRM in music at least appears to be dying a quick death. Warner, the last major holdout, has just agreed to release all their music DRM-free on Amazon. The next obvious step will be to get rid of DRM on movies, although it probably won’t happen as quickly since the movie DRMs usually reside on discs, rather than online formats. It’s not like music where DRM obstructs portability, which is the whole point of digital music downloads. DRM does not, at the moment, interfere with the normal operation of movie discs, other than being not able to backup your movies (which you’d be hard pressed to do with Blu-ray and HD DVDs, what with them being so large in size).

Moving quickly onto HD movies, apparently The Bourne Ultimatum and Harry Potter and the Order of the Phoenix HD DVDs are outselling all Blu-ray titles this week, including the Blu-ray version of OOTP. This is not too surprising because Bourne is a format exclusive hit movie, and that the Blu-ray version of OOTP has had several production and distribution problems. In the end though, Blu-ray still won the week by nearly a 2:1 margin again. All those PS3s are really helping Blu-ray’s movie sales – even if every PS3 owner just buys only one movie, that will still give Blu-ray a huge advantage even if HD DVD owners buy 3 or 4 movies per player. What I think will happen eventually is that the HD DVD movie sales number will go up due to the people who purchased the cheap $99 HD DVD players (and subsequent sales) finally starting to purchase some movies. Remember that all the HD DVD players came with up to 12 free movies, so there is no immediate reason for people to buy titles until they’ve finished watching the free ones. And once Universal and Paramount start releasing their catalogue titles (older classics, such as Back to the Future or The Godfather), then the numbers will be more even. That’s my prediction for 2008 by the way, and it’s the only prediction I’m going to make since I suck at them. Speaking of sales, don’t forget to keep looking at our special online sales page for high def bargains. The current HD DVD BOGOF sale is going very well, with more than 20 HD DVD titles in the Amazon top 100 movies at times (the top 100 includes DVD, Blu-ray as well as HD DVD sales). Amazon has even released a statement saying they they sold so many high-def players that it could have filled seven (American) football fields. If you’re still confused about Blu-ray and HD DVD, don’t forget to read my new Buyer’s Guide, which even if I’m saying so myself, is pretty useful if you still need more information to make up your mind as to whether to get into HD or not (or which one of Blu-ray/HD DVD/both).

And that’s pretty much it in terms of news.

So onto the yearly review. 2007 has been an interesting year for myself and Digital Digest. The biggest even happened in March. I still cannot legally say much about what went on, except to say that it was a legal matter and that, for a while at least, it appeared that Digital Digest might not have survived to its 8th birthday (which was celebrated in July this year). But survive I/we did, and I think the website is a better one for it – there’s no longer any confusion toward its legal status, and it has forced me to concentrate on some other parts of the website which has been neglected (such as the Blu-ray and HD DVD stuff).

But apart from that, I think 2007 is when Blu-ray and HD DVD finally entered into people’s thoughts, if not their homes (I think this will happen in 2008). This time last year, nobody really gave a damn about the format war or sales figures. Paramount was still format neutral, and you wouldn’t even think possible that a HD player’s price would fall under $100. But from what I have seen, people are starting to think about getting into HD, and while it may still take a year for most people to start caring, I think the trend is there.

Another war that has been brewing is the next-gen games console war, a three way fight between the Nintendo Wii, the Xbox 360 and the PS3. You might say that there are really no losers in this war, at least not for 2007, since in their own way all three consoles have made significant gains. The Wii has become a fad, attracting people who have never played games before. The Xbox 360 has held firm despite RROD problems, while the PS3 looks less like the whipping boy that it was at the start of the year. 2008 should probably see the PS3 make more gains, while we might yet see some new innovations coming the Wii’s way.

2007 is also the year music DRM finally died. To be fair, it was a short and bitter life for music DRM – it never really had any chance because it’s hated by the most important demographics – the actual consumers. Hopefully, 2008 will be the year video DRM dies too, with CSS, AACS and BD+ being hacked beyond all recognition, I don’t think DRM will be missed at all, not even by the studios.

So that’s it for 2007. I hope you’ve had an eventful and pleasant 2007, and if not, I hope that 2008 will be much kinder. Happy New Year from me and everyone here at Digital Digest. See you in 2008.

Weekly News Roundup (16 December 2007)

Sunday, December 16th, 2007

Only three more weekly roundups for 2007, assuming I’m arsed to do them just before and after Christmas. This is the 13th roundup that I’ve done, setting a personal record for keeping up with anything for so long. I hope you’ve all done your holiday shopping, and that the shopped items include some of the very things covered by this blog (HD, gaming, movies). If so, then I think the people that will be receiving your gift will get a very nice surprise indeed.

The big news in the last couple of weeks, in regards to copyright/DRM, has been the Western Digital portable hard-drive scandal. WD apparently added certain DRM provisions in the bundled software that prevented sharing of popular media files due to “unverifiable media license authentication”, in other words, they couldn’t tell if your files are pirated or not so they basically assumed so. Now, the actual issue has been exaggerated a bit, some going as far as suggesting that WD drives have hardware control built in to prevent media sharing, but this is not the case. The software that comes with the drive is optional, and the drive supports other methods of file sharing that is not restricted. The software itself isn’t even very good. But what is clear is that DRM has gotten so out of control that even large companies such as Western Digital are too afraid to include software that do basic things such as media sharing on your own home network. And while the first step is a simple software control that can be easily bypassed, if the trend continues, then who knows where we will end up. The public outrage is a welcomed sight though, because as long as we’re angry enough to demand a DRM-free world, then we will get a DRM-free world (just look at online music buying and how public pressure, along with companies that aren’t afraid to listen to consumer demands, have basically killed off DRM in that arena). But if we don’t get angry, then the media owners are going to get more and more greedy and demand more and more control over “their” content (or rather, content they’ve gotten comparatively cheaply from artists forced into the studio system) – perhaps something like not being able to rip your CDs to MP3 because the RIAA thinks that’s copyright infringement (even though CDs are not protected, and even if you don’t share the MP3s with anyone other than yourself).

But I did find this news story about porn companies suing a certain YouTube-style adult video site quite funny for some reason. The Internet has probably been the worst thing that could have happened to the porn industry – who needs mail order videos when you could just log online and get unlimited porn. But it appears the increased competition has meant every increasing production values of pornos, umm … or so I’ve been told.

Moving on quickly, in HD news, Blu-ray player prices have dropped, for the first time, below the $300 mark. Samsung’s BD-P1400 can be had for less than $280 now on Amazon (I just checked), and at that price and with HD DVD‘s already low price, as well as PS3s being discounted all over the place, there’s very little reason not to get into HD now (especially if you already have a HD screen), and even more reason to project yourself from the format war and become HD neutral. Be warned though that the BD-P1400 is only profile 1.0 compatible, so I would save up and buy the PS3 instead for about a hundred dollar more (and for the extra price, you get a pretty decent media hub, Internet browser and of course, games console). I’ve decided to set up a page where I will list and update all the HD deals on Amazon (including both hardware and software deals) – there are some good savings to be had. The war of stats between the two camps have intensified, with both sides claiming some sort of victory in the Black Friday sales. The HD DVD people say that they captured 62% of the market during the sales, most likely not including the PS3. There is also research from them showing that the next wave of buyers might favor HD DVD over Blu-ray. I’m sure the Blu-ray people have similar stats showing the exact opposite. Or if not stats, than just more rumors about Warner Bros. going Blu-ray exclusive will do (despite Warner having already denied the rumors twice – and again, the HD DVD people will find some “clues” that suggests Warner are going HD DVD exclusive too). But even when you add both HD DVD and Blu-ray sales, they only amount to 10% of combined high def and standard def DVD players sales in the same period – there’s still a long way to go before people stop buying DVD players and start buying high def ones, if we ever get there. I don’t like the notion that somehow high def is fighting a war against SD (in this case, HD will eventually win, just like HDTVs won over SDTVs). I think the war is against user confusion and apathy towards HD – the confusion comes from the format war, and the apathy comes from the high prices of HD movies. But hopefully, the confusion will slowly go away we more dual format players, like the LG BH200, are released. Right now, it’s the real dedicated, early adopters that are getting into HD and confusion and apathy are not issues, and even life and death is a trivial matter when it comes to your home theater equipment.

And finally in HD, last week I mentioned something about Michael Bay saying Blu-ray is superior. Michael Bay seems to like posting on his forum, and this should be applauded, but there’s probably a reason why famous people like Mr. Bay need to be more careful when it comes to public speech. His statement about Blu-ray suiting the look of his movies better, apparently irregardless of trivial things like the video codec, bitrate, transfer process, is funny to the extreme. By his reasoning, CDs sound better than MP3s because MP3s don’t even have a physical medium. It’s like a ghost format, and how can a ghost defeat something that is real? Unless of course the ghost uses it’s ghostly powers to scare away physical beings – perhaps this the reason the RIAA is so against MP3s is because THEY ARE AFRAID OF GHOSTS!!! Well, it makes a little bit more sense than Mr. Bay’s statements anyway. As as for his conspiracy theory about Microsoft, of course Microsoft has come out to deny all of his claims (but their response was expected, just like how government deny the existence of UFOs and yet already have spacecrafts that can travel thousands of light years to make deals with alien races in regards to the enslavement of mankind). And to show that Microsoft cares about HD DVD, they’ve released an emulator for testing HD DVD/HDi compatibility, quite ingeniously I might add – it works simply through the Xbox 360 and an Xbox Live account (and $2,999 to buy the emulator, of course), no need to purchase dedicated hardware at all.

In gaming, the November NPD figures were just released and you can read my full analysis here. But to sum up, sales of everything was up for the holiday shopping season, with the Nintendo DS leading the way and the Wii following only because of stock problems. Xbox 360 was next, followed by the PSP and PS2. And propping up the whole group is the PS3 once again, even though sales quadrupled, it was not enough to even get past the PS2 sales. The Xbox 360 “only” doubled (or nearly) it’s sales numbers from last month, but because the 360 sells more games per console (6.9 per console), they are the most profitable when it comes to third-party revenue in the US – more than both the PS3 and Wii combined. Which means they can cut prices even further without feeling it, unlike Sony.

Ok, that’s all for this week. I’ll be back the same time next week, just two days before Christmas, to bring you more news updates. Until then …

Weekly News Roundup (2 December 2007)

Sunday, December 2nd, 2007

I can’t believe we’re in December already for 2007. Where has it all gone? I mean it seemed like it was only yesterday when I was going around from shop to shop after the Christmas rush to buy myself a Wii console, and now it’s nearly a year on (and people are still going from shop to shop trying to buy a Wii console). It’s quieter week, mainly because my mind has been elsewhere (writing the PS3 H.264 Conversion Guide), so I might have missed or not cared about a few news stories here and there. Sorry about that.

In copyright news, Canada’s movie studio friendly government is seeking to implement even tougher copyright laws that will make the US DMCA look weak by comparison. Well that’s what happens when you elect right leaning governments – just look at what’s happening in France too with their newly elected US-loving President.

Moving quickly onto HD news, it’s been a week of where both HD format groups are throwing stats at each other. First, the HD DVD people say that HD DVD player sales have topped 750,000 – impressive. But maybe not as impressive as Blu-ray‘s claim that they rule in Europe and during the Black Friday sales in the US. I really need to write a summary of what’s going on in the HD wars, but from the current data, it seems:

  • HD DVD sells more standalones
  • Blu-ray sells more players overall if you include the PS3
  • More HD DVD movies are sold per player
  • But Blu-ray has more movie sales overall because it has more players, even though it sells much less movies per player
  • Movie sales are generally influenced by big releases, title such as 300, Transformers, Spider-Man 3 and Ratatouille, and the more releases a side has for that week, the more sales it generates (well, duh). It does seem that Blu-ray has more “hit” releases than HD DVD at the moment

There is finally a non-Toshiba cheap HD DVD player out on the market, not that there’s anything wrong with Toshiba players. Venturer has put out a HD DVD player based on the Toshiba A-3 for $199 – not very competitive when you look at the prices the Toshibas are selling at. I’m sure the actual store pricing will be a lot lower. While prices might not be quite competitive in the US, I’m hoping that the Venturer might come to Australia and bring prices here lower – Toshiba player prices are high here due to various reasons such as our prices being matched to European prices due to Toshiba’s corporate structure, but many of these reasons don’t apply to Venturer and Asian made players. And while not HD news strictly, many reviewers are hailing the new Pioneer “Kuro” plasma as the best TV out on the market. As an owner of a 4th generation model (the Kuro is the 8th generation model), I only have good things to say about the Pioneer plasma range. While I’m not sure about the “best in the world” rating, it’s certainly up there, although other brands such as Panasonic are not far behind. The Kuro is available in 50″ 720p, 1080p and 60″ 1080p models – if I had the money now, I would upgrade my panel to the 50″ 1080p model, 60″ if I win the lottery.

Gaming next, and as mentioned in the intro to this piece, the Wii is the thing everybody wants this Christmas, which is funny, because it’s in the same position as last Christmas. Not wanting to sound smug or anything, but if you really wanted a Wii, why wait until the Holiday gift season to get one? I’m sure there were a few available back in June if you really wanted to get one. Wii stocks are so low that even the PS3 has managed to outsell it in Japan. It is very impressive figures for the PS3, don’t get me wrong, but if the Wii’s stock in Japan wasn’t limited to 160,000 or so, it would have killed the PS3’s 180,000 sales and probably beat every other console combined. The PS3 is doing very well due to the 40 GB lower priced model (how can I argue against that when I’m one of the people who joined in with the buying) and could top the Xbox 360, but not according to Microsoft, which Sony has come out and criticized. I will have to wait and see for the final figures before choosing to believe either side. The PS3 is also a hacker’s dream because its processor is optimized for hacking like activities. I just hope the console is locked down tight security wise, because I don’t want my PS3 to help some hacker’s attempt to hack into the Pentagon or something. And the official list of updates for the Xbox 360 “Fall” update has been released by Microsoft,  and it’s a huge list. I won’t go through everything, except to say that it looks like Microsoft have beaten Sony to the punch by getting DivX and XviD support into the console first, unless Sony releases a surprise firmware update in the next two days that is. The DivX support is quite extensive, covering all the advanced encoding features like GMC, Q-Pel and B-Frames (read our DivX Setup Guide to find out what these mean), and up to 720p resolution at 5 Mbps. And AC3 5.1 audio support, as well as MP3 support, is included too. So it looks like pretty much every DivX/XviD file out there will be supported. Will this make the 360 the most popular hardware device for viewing pirated TV show episodes? That is if we still end up having any episodes to download due to the writer strike.

Until next week …