The announcement marks China’s latest attempt to leverage its manufacturing muscle to play by its own terms in the home video market. Up to 80 percent of DVD players are made in China, but makers have to cough up around 40 percent of the cost of each player to license holders, according to Chinese reports.
For the second time in two years, China has announced plans to develop its own next-generation DVD standard to break the monopoly of foreign companies and avoid paying heavy licensing fees. If successful, the move could add a new wrinkle to the battle between HD DVD and the competing Blu-ray Disc formats over which will become the dominant new DVD standard.
The official Xinhua News Agency said the new standard will be based on but incompatible with HD DVD, which is being promoted by Toshiba Universal Studios, as well as Intel and Microsoft. Microsoft, the leading suppliers of chips and software for most of the world’s personal computers. The Chinese standard, not expected to reach markets until at least 2008, would provide higher definition, better sound and better anti-piracy measures, Xinhua quoted Lu Da, deputy director of the government-affiliated National Disc Engineering Center, as saying earlier this week.
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