Hewlett Urges Compromise in Battle Over New Formats for DVD - New York Times

Hewlett Urges Compromise in Battle Over New Formats for DVD
By KEN BELSON, October 20, 2005

The Hewlett-Packard Company, a member of the Blu-ray Disc Association developing the next-generation DVD, urged the group yesterday to adopt software that has already been included in the rival format.

While still supporting the Blu-ray format, Hewlett took the unusual step of announcing its request as the board members of the Blu-ray group met in Los Angeles. The move signaled a potential rift in the Blu-ray camp between consumer electronics giants like Sony, Panasonic and Samsung, and computer makers like Hewlett and Dell.

In a pointed ultimatum, Hewlett said that if the additional technology was not added to the Blu-ray format, it would consider switching allegiances and backing the rival standard, Toshiba's HD-DVD.

"At the end of the day, H.P. will support the optical formats that support this technology, so we would have to look at alternatives" if the Blu-ray group rejects its request, said Maureen Weber, the general manager of personal storage at Hewlett and the chair of the promotions committee for the Blu-ray Disc Association.

Hewlett wants the Blu-ray group to incorporate the software because it allows consumers to legally copy DVD's onto their PC's, transfer movies to other devices and watch video in a greater variety of ways.

Microsoft's new Vista operating system is expected to work easily with this software. As a result, Hewlett and other computer makers could install Vista in their PC's and avoid having to spend the time and money to install and test the alternative software called BD Java.

But after remaining neutral for several years, Microsoft and Intel last month backed the HD-DVD standard being developed by Toshiba. The move made it politically more difficult for the Blu-ray group to work with Microsoft.

Ms. Weber said Hewlett was "shocked" by Microsoft's decision to throw its weight behind the HD-DVD standard, and it forced her company to reconsider its priorities. She said Hewlett was trying to broker a solution to the deepening format war by proposing that the Blu-ray companies use Microsoft's software.

Hewlett hopes that the Blu-ray group votes on its request in the month or two.

"We need to start to making our high-definition plans," Ms. Weber said.

The showdown is emblematic of a broader struggle between the computer and consumer electronics industries. Computer companies are trying to make inroads into the entertainment industry by making it easier for consumers to copy, store and transfer music and video.

In general, consumer electronics manufacturers, backed by movie studios and music companies, have resisted those efforts and created technology that tries to limit what consumers can do with their content.

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