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HD VMD contender sees opportunity with HD DVD out

The red laser-based high-definition disc format developer New Medium Enterprises reacted to the demise of HD DVD, seeing increased opportunity for its HD VMD, now that it faces only the more expensive Blu-ray competitor.

“Both formats offer the capacity required for High Definition film on a six inch optical disc; both formats have a pipeline of players and content hitting the market; however only one can be produced by the world's current manufacturing base at a consumer-sustainable price, and that is VMD as it is DVD-based,” claims NME.

“The blue laser format has struggled to gain a market foothold and very few manufacturers have acquired the equipment needed to produce 'blue' players and discs. With a market lifespan being shortened by satellite, cable and download, the significant investment required to produce them makes economic viability difficult for manufacturers, particularly in less affluent markets where the high street price will always have to be much lower.”

“In contrast, as NME's multilayer format is based on existing red laser DVD production technologies, it requires no such significant investment by OEMs, disc replicators and authoring houses,” the company continues. “With production costs close to DVD, VMD is now coming to market and to provide a commercially viable High Definition product range for manufacturers and of course, their customers.”

“The way is now clear for VMD to be embraced by the industry, our technology is robust and our format is clearly equal to the quality required to deliver a true HD experience for the consumer at a price they are prepared to afford,” said interim CEO Geoff Russell. “With commentators starting to pick over the remains of HD-DVD, it is clear that Toshiba's strategy had been to target a wider market with lower pricing, but failed due to technical difficulties, delays and significant losses even on modest sales.”

“NME has developed the VMD technology independently and is poised to come to market in several territories in the next quarter. All indications are that VMD can fill the void left by HD DVD for a hungry production industry and rapidly growing HD-screen enabled consumer market,” says Michael Solomon, Chairman of NME.

Story filed 03.03.08

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