/ 24 February 2006

Matsushita’s new president to continue DVD battle

Matsushita Electric Industrial’s newly appointed president on Friday expressed confidence that the company and its partners would win the battle for dominance in next-generation DVD players.

Fumio Otsubo, named on Thursday as head of the Japanese electronics giant behind the Panasonic brand, said he would uphold his predecessor’s policy of promoting the Blu-ray standard.

Supporters of the Blu-ray format, led by Matsushita and Sony, are waging a fierce battle against a rival HD DVD format pushed by Toshiba and NEC, with the two sides vying to set the common standard in the lucrative market.

The Blu-ray disc is expected to have a greater storage capacity than the HD DVD but also to be more expensive to make, at least in the short-term.

Otsubo said that the Blu-ray format was more suitable for the use of large, flat screen television sets, now a rapidly growing market.

“We are confident that when high-quality content is observed through a large display, a big storage capacity is a strong point,” Otubo told a news conference in Tokyo.

The newly appointed president said his firm would further step up its effort in development and production of both large flat television screens and Blu-ray DVD players.

“This is our winning scenario. I have strong confidence,” he said.

Otsubo also said the Blu-ray side had already won contracts with twice as many Hollywood filmmakers as those on the HD DVD standard.

“We will make steady headway, together with other Blu-ray Disc partners.”

The Hollywood studios pushed the Sony and Toshiba camps to settle their differences and develop a single format in an effort to avoid a replay of the VHS-Betamax war between two types of video cassette tapes in the late 1970s.

The two sides failed, however, to reach a deal and currently plan to push ahead with their separate technologies billed as offering cinematic quality images and opening up new possibilities of interactive entertainment. – AFP