European Commission looks into Blu-ray studio agreements

European regulators have begun an inquiry into possible antitrust and anticompetitive practices by the Blu-ray Disc Association as it relates to agreements and restrictions on producing content for Blu-ray and its competing high-definition format, HD DVD. At the urging of some in the HD DVD camp, the European Commission has sent letters to many of the Hollywood studios asking them to produce any correspondence relating to their backing of the Blu-ray format. Of the major studios, Sony, Disney, Fox, Lions Gate, and MGM only release titles on Blu-ray, while only Universal is exclusive to HD DVD. Analysts say much is riding on the outcome of which format wins, with sales of content and players as a big incentive for either side. Is this inquiry just a case of sour grapes by HD DVD that sees itself as in trouble while Blu-ray has better agreements with studios? Or is the BDA not playing fair by using those vertical relationships to form a de facto monopoly? Those in the EU aim to find out.

[Thanks, LJKelley]

[Mike @ Jul 4th 2007 10:38AM]

If you can't beat em call em a monopoly

[cduran01 @ Jul 4th 2007 10:40AM]

Thats whats called good ole fashioned SORE LOOSING.

[simon.nutsy @ Jul 4th 2007 10:42AM]

About bloody time som eone noticed the monopoly...

[TheGuy @ Jul 4th 2007 10:46AM]

Technically, this investigation is looking at both Blu-Ray and HD DVD, but since Blu-Ray is the more successful format and has more exclusive deals the investigation will have more of a focus on them than HD DVD.

[shirizaki @ Jul 4th 2007 11:07AM]

Yes, because if a format's better than their competitors they must be cheating.

Blu-ray is supported by more companies and studios, not to mention you get a free blu-ray player with the PS3. HD-DVD is spearheaded by Toshiba and a few other companies and has fewer studios for it. The tech may be cheaper, but that means jack when there's nothing to watch.

By the time decent dual format players come out Blu-ray will have gained a bigger lead so it won't be worth it.

[DAZA @ Jul 4th 2007 12:14PM]

You don't get a "free" Blu-ray player in the PS3, you pay for it inclusive of the high price tag. And there are dual format players out now, LG has had one for a while, going for about $1,300 AUD / $1,114 USD where I work.

[Zoinks @ Jul 4th 2007 11:08AM]

You there! Yes you! The group that helped design the Blu-ray format as part of the BD Alliance. You aren't... allied, are you? Colluding? Working together?

Well, sir, we don't fancy that here in Europe. Give us old fashioned confusion wherein parties don't come to an agreement about a technology specification and work to promote its use. No siree.

[Paul @ Jul 4th 2007 11:48AM]

That is exactly what was going through my head.

[Rocket Scientist @ Jul 4th 2007 12:02PM]

LOL, that's pretty good zoinks. I tend to agree with you.
Fact of the matter is, The EU has so many chefs in the kitchen, they will never come to a decisive conclusion, and even if they did, it would take another 10 years to ratify it. It also seems to me, every time I turn around, the EU is looking for some type of consumer protectionism (which is not always a bad thing) of hardware and software that comes to the EU. The most recent battle I can think of off hand is the MS IE bundle boondoggle, and Apple i Tunes software.

As far as competing formats in the DVD world, I'm going with Blue Ray for 2 reasons.

First and foremost, Universal, which owns universal music, and is run by the head cheerleader of DRM and the RIAA, ( Edgar Brofman Jr. ) is trying to manipulate the industry to go with HD DVD. (of course they all do it, I just choose to dislike Brofmans choice more)

2nd, I just happen to be invested financially in the other formats companies that are involved, and have to say so far I've been pleased with the end results.

[Fatima @ Jul 4th 2007 11:08AM]

ha, i remember how just a few months ago everyone was anti Blu-Ray no one would believe me that its a better format. O well atleast now they come to their senses.

[LJKelley @ Jul 4th 2007 11:14AM]

I just wanted to point out that the graphic could be wrong since it says June for Blu-ray data and April for HD DVD data. Especially since June is "Year to Date" but April isn't.

[LJKelley @ Jul 4th 2007 11:16AM]

Strike that comment... I totally misread that graphic. I'm a fool, I admit it.

[Michael @ Jul 4th 2007 11:15AM]

monopoly? Does anyone know what a monopoly is? Blu-Ray don't own a monopoly if anything it is a duoploy and they have the leading market share. They are merely supplying a technology by which most major studios have decided to adopt, and if it is due to Sony 'muscle' or the 'exclusive' deals they are providing then that is what is called successful marketing.

[Jesse S @ Jul 4th 2007 11:23AM]

First Microsoft (which was a little underhanded...but not enough to sue them), and now blu-ray.

So companies backing what they see as a better format makes it a monopoly? What the fuck?

[Ben Grimsbo @ Jul 4th 2007 12:19PM]

Actually, the investigation is into whether or not Sony used underhanded tactics to pull people away from HD-DVD, since HD-DVD had the backing of the international DVD Consortium, and still does.

[Dan Zillion @ Jul 4th 2007 12:00PM]

I don't think it's that they're looking into companies backing a superior format o much as that they want to check into companies backing an inferior format in order to suppress the better format...

And, no, I'm not trying to bash Blu-Ray... there are a number or reasons that HD-DVD is the better format and my preference isn't one of them... :)

There are a nmber of articles on the web taht talk about the relative merits of each format and Blu-Ray just doesn't come out on top technically speaking.

[Jesse S @ Jul 4th 2007 12:03PM]

You mean the fact that HD DVD scratches easier? Or that it hold less data per layer than BD?

[Carbonize @ Jul 4th 2007 3:16PM]

How about Blu-rays rotting coating? Or HD-DVD's interactivity?

[Jesse S @ Jul 4th 2007 4:10PM]

Rotting? You mean, that thing that can happen to any disc and was a manufacturing mistake on a few batches of the same movie?

[ADR @ Jul 4th 2007 11:32PM]

Uh HD-DVD is backed by the DVD consortium because the DVD standard was created by Toshiba and HD-DVD was created by Toshiba. Thats pretty much the reason.

Sony and Panasonic worked on thier own DVD standard but pulled out so Toshiba's format was ratified. This time around Sony came up with the format that got more studio support. In essence this is about SOny owning movie studios and creating a disc format. Sony would obviously not release discs on the competing format so that gives Bluray an unfair advantage. Only Sony has been paying money to Toshiba to put movies on DVD for ten years.

Either way Bluray has far more support and rightfully so. HD-DVD was late to the party and only signed one major studio, which had thier reasons due to DRM, and Microsoft who put some money behind the format for the sole purpose of trying to hurt Sony's home entertainment division.

[cliched geek @ Jul 4th 2007 11:27AM]

I may be reading your post wrong but from the way I am reading it you seem to imply that Blu_ray was invented in the US. You do know that Sony is a Japanese company, dont you?

No matter what the reason why this investigation was started does not matter. The outcome is very important. The total number of both kind of players sold is very low showing that consumers are unsure which formate to back , as they dont want to waste money on a losing formate.

This investigation will help average consumers who dont spend their days on tech blogs to make more informed dissions on here which formate to invest in by giving them more information.

[PJK @ Jul 4th 2007 11:49AM]

Makes perfect sense to me, they are basically forming a cartel on media by restricting to one format or another exclusively. I'm amazed it took this long to be investigated.

[Ordeith @ Jul 4th 2007 11:55AM]

Movies look better on HD-DVD.

Licensing fees for Blu-Ray too high for data use.

[Jesse S @ Jul 4th 2007 12:04PM]

Jesus Christ you are an idiot. HD DVD and blu-ray use the SAME VIDEO CODEC.

[Ordeith @ Jul 4th 2007 12:08PM]

Jesse:

Wrong. Well at least initially.

HD DVD uses VC1.

Blu-Ray was still using MPEG2, probably because SON¥ didn't like the idea of paying royalties to MS for their stake in the VC1 codec. I heard this was going to change, haven't seen anything that says it has.

Do yourself a Google search favor sometime and learn how HD-DVD video quality has been superior to Blu-Ray then come back here educated.

Or you can just look like a fool while calling other people names, it does seem you prefer that.

[DAZA @ Jul 4th 2007 12:16PM]

I co-sign Ordeith.

[Jesse S @ Jul 4th 2007 12:54PM]

Yes, at first. But not now. I think anyone could easily see I meant now and not within the first few months of both formats being out. Doesn't that make more sense?

[Simple Panda @ Jul 4th 2007 1:09PM]

I hate to say this but you're very much wrong.

Both HD-DVD and Blu-ray are designed for VC-1, MPEG-2 and MPEG-4 AVC. Indeed, early BD releases used MPEG-2 and early HD-DVD releases used VC-1, but these days, it pretty much breaks down as:

Warner Bros: VC-1 on both formats.
Sony, MGM, Columbia: AVC on Blu-ray
Fox: AVC on Blu-ray
Lionsgate: AVC on Blu-ray
Paramount: AVC on Blu-ray, VC-1 on HD-DVD
Universal: VC-1 n HD-DVD

I'm sure I'm forgetting someone but long story short, most people on BD are doing VC-1 or AVC these days.

Also, it should be noted that Blu-ray has a higher throughput rate than HD-DVD, so even though the codecs are the same, Blu-ray can be made to look better via higher bitrate encodings.

[Jesse S @ Jul 4th 2007 4:10PM]

Sorry, I assumed that currently BD and HD DVD used the same codec.

[The Aggie CEO™ @ Jul 4th 2007 11:59AM]

Monopoly!?!? So Basically since there wasnt anything goin to war with DVDs when THEY first came out I suppose they are a monopoly too............

PLEASE........

[Calvin @ Jul 4th 2007 12:22PM]

Why do you guys mis-represent stories? The commission is looking into *BOTH*. Again with your crappy bias bullshit.

[Calvin @ Jul 4th 2007 12:29PM]

Ordeith,

It is HD DVD not HD-DVD.

Also, the blu-ray platform supports MPEG2, MPEG4, AVC, VC-1. While initial titles had been released as MPEG2, a lot of the feedback on the releases showed (as expected) that this was inferior to AVC and VC-1. The studios have started making more of the releases using the better quality codecs (Flightplan and Casanova use VC-1 on blu-ray).

It is now already industry accepted that the formats have the equivalent capability in terms of video quality and titles released half through the first quarter up to date have shown a wash in quality comparisons.

I suggest that if you decide to attempt to correct someone, you ought to know what you are talking about first.

Calvin

[SimbaDogg @ Jul 4th 2007 1:18PM]

Calvin, thanx for actually speaking the truth. I dont know why people insist on saying one format looks better than another, to this day. Its seriously some of the dumbest convo that i've seen on engadget. As long as the QUALITY of the players is the same, and the movies are encoded in the same codec, the quality of the picture will be identical...period. Blu-ray, as of right now, does not look better than hd dvd or vice versa. for future movies/disk releases, blu ray does hold the advantage of having a much larger storage capacity...so say if WB were to release a movie on hd dvd and blu ray, they could theoretically increase the bit-rate on the bluray disk since they have a lot more space to use, making the picture quality better. but i believe no studio has started doing this yet.

@ Earlier poster,
anyone that buys the lg unit...well, you're wasting your money. You could easily buy the new sony unit for 500, and a h2-a20 for what...400 now? and have the full support of both formats, and 1080 output, and save about 300 bucks. keep in mind, the lg doesn't fully support all of the hd-dvd features, which is why you won't find that logo anywhere on the box.

any why does everyone think that the BDA illegally or unethically got all those studios to make exclusive deals. From what i remembered when they two formats were still in the works, a lot of studios preferred the blu ray format because of the encryption that it used. if this is case, who is to fault a movie studio for wanted to better protect their products from piracy.

[Andrew @ Jul 4th 2007 1:37PM]

Case in point for the importance of the EU - 70cl bottle standardised in EU for alcoholic beverages, becomes global standard used even by Jack Daniels in the US (even if the label does use imperial) The largest part of the US trade deficit is to the other side of the pond as well, so come out from under your rock please.

[Cliff Larsen @ Jul 4th 2007 2:51PM]

Does the EU actually have authoritative power yet to legislate decisions? I know they started out as only recommending laws. Someone let me know.

[Carbonize @ Jul 4th 2007 3:15PM]

Actually I'd say people are slow to adopt a format because both formats are still evolving and the player you buy today will probably be out of date tomorrow.

[Graham @ Jul 4th 2007 3:59PM]

Surely Toshiba paying Universal to stay exclusive is anti-competitive???

[Ole @ Jul 4th 2007 5:50PM]

Lucky Norway is not a member of the EU, bunch of beauracrats who think that they can just do whatever they want, forcing whatever supid laws, standards and directives upon their citizens. Those f***ers can go drink some wine and eat some caviar, on the citizens expence off course!

Nei til EU og Norge ut av EØS!

[Andrew @ Jul 5th 2007 9:14AM]

Dustemikkel! Norge er så godt som medlem av EU og du vet det. Og dette handler ikke om nye lover i det hele tatt. Hvis du hadde litt vett hadde du skjønt at det handler om akurat det samme som norske forbrukervernslover er skapt for å gjøre: beskytte forbrukere mot store selskapers ulovlig samarbeid (monopol/prissamarbeid) og misbruk av markedsposisjon til å ta grovt overbetalt av forbrukerne for varene. Du er tydeligvis helt uten kunnskap om EU og saken.

[hairypsalm @ Jul 4th 2007 6:53PM]

there goes engadget sucking on the hd dvd dick again...stop.

[E71 @ Jul 5th 2007 2:08PM]

Who died and made the EU a world police?

Seriously, if you don't like it - don't buy it you EU f*gs!