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CBHD entry may escalate disc wars

By Wang Xing (China Daily)
Updated: 2009-04-23 07:46

A CBHD player made by Chinese consumer electronics maker Shinco.

Chinese manufacturers yesterday launched high-definition discs and players based on the China Blue High-Definition (CBHD) standard, intensifying the next generation disc format war in the world's most populous country.

Lu Da, deputy director from the Optical Memory National Engineering Research Center (OMNERC) under Tsinghua University, said the CBHD-based discs and players are now ready for Chinese consumers.

"We have seen DVD replacing VCD during the past few years and we believe a similar trend will also happen when high-definition discs and players are available at affordable prices," he said.

Tony Vaughan, managing director of CAV Warner Home Entertainment, a joint venture between Warner Brothers and China Audio Video, said the company plans to release 100 CBHD-based titles in China this year, including Harry Potter, The Golden Compass, and Speed Racer.

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Developed by OMNERC, CBHD has got wide support from the Chinese government and domestic manufacturers who wish to reduce their reliance on western technologies.

CBHD competes with Blue-ray, a widely recognized high-definition technology that enables a larger disc capacity but is much more expensive than CBHD at the moment.

The first two models of the CBHD-based players, made by domestic electronic vendor TCL and Shinco, would be sold at about 2,000 yuan, according to Li. The price of the CBHD-based disc would be around 50 yuan.

"I think foreign companies need to face the fact that Chinese consumers are price sensitive," Li said.

"And that will not change for some new products or technologies."

Shi Wanwen, vice-president, TCL, said high-definition televisions have got a great boost in China in recent year and its accumulative shipment is expected to reach 70 million by 2011, creating a huge market for CBHD players.

"In China, there are few high-definition channels, so we think high-definition discs will be the major channel for Chinese consumers to enjoy their new TV sets," Shi said.

Sales of legitimate DVDs in China have been sluggish largely due to the rampant piracy resulting in great losses for content makers from home and aboard.

According to Vaughan, the CBHD discs have a better copyright protection technology than DVDs.

"I believe Chinese consumers are willing to buy legitimate content as long as the price is appropriate," he said.

As a supporter of Blu-ray technology, Warner Brothers announced in February that it will support China's CBHD, making it the first, and the only Hollywood studio which is backing the standard. The company, however, also plans to release Blu-ray-based titles in China.

Vaughan said the current pricing of Blu-ray products in China, where players are sold for 5,000 yuan and discs 250 yuan, is "unacceptable" to the great masses.

The managing director said the CBHD is a good option to provide high-quality products at appropriate prices to Chinese consumers.

"We hope that more Hollywood makers will embrace this standard soon," he added.