[Chapter 795: The Emergence of DVD]
After consecutive delays, the digital video solution finally unveiled its mysteries.
The market's reaction to this product from Bell Labs was rather peculiar.
MPEG was, of course, disgruntled; essentially, this so-called DVD took the form of an upgraded MPEG. Unfortunately, they were bogged down by lawsuits. As of now, this MPEG2 was neither completed nor resolved, and even once completed, it would encounter a series of patent issues.
Most crucially, the White system not only proposed a digital video standard but also offered a comprehensive solution.
The hardware decompression chip, produced by Motorola, was quite impressive. Most importantly, it considered copyright issues. If the disc was illegally burned, the chip wouldn't work.
Well, this was somewhat absurd. If someone truly wanted to bypass that, they could find a million ways.
However, having a plan meant having a plan. You MPEG folks hadn't even considered this angle.
"Filson, have there been any updates from Japan and Taiwan?"
"None; they're still observing. Of course, if we OEM for them, they won't have any issues."
"Here's the deal: they'll gain the right for simultaneous sale. As for regulations, let's not talk about that."
"Sir, are you saying they'll change our specifications?"
"What I worry about is their potential modifications to our decoding chip. Well, actually, it's not really worry; they definitely will."
"Sir, since that's the case, should we not sell?"
"Pointless; at least we can still make some money. These chips aren't like X86; the requirements aren't that high. The main goal now is to seize the market; at least, there won't be any problems in the U.S. and Japan. We can do two types of chipsets, and when the time comes, make sure the export products have set agreements."
"Got it; there's no issue there. Their export products are different from domestic ones. Furthermore, we can require inspections."
...
Japan's reaction was tepid, which was quite understandable. Their VCRs were selling worldwide; they were making a killing.
DVD? What's that? Can you record sports programs with it?
In the U.S. and Japan, TVs and VCRs had already been widely adopted. The primary use for this product would be to record shows viewers missed.
Well, the homebody had other uses, but that's another story.
"Steve, what are we talking about with this DVD? If it's anything like a VCR, what's the value in buying it?"
Lucas looked at Steve disdainfully. This old man knew nothing, yet he dared to make such comments.
"George, how could it possibly be the same? Let me tell you; the differences are huge. Don't even bring up DVDs; even VCD is more convenient than a VCR. For instance, if I go to karaoke right now, a VCD is just a digital format, whereas a video tape is more cumbersome. Also, the clarity of DVD surpasses that of tapes. As for other matters, if I want to watch a movie at home, I wouldn't even think about a VCR."
"Seems like the current video rental market is set to see some changes." Lucas mused, assured that if it didn't benefit William White, he wouldn't be so proactive.
"Renting? That's less profitable than selling discs directly. If it can't be copied, renting is even worse than buying, especially for the classics."
Lucas understood. Hollywood's other giants weren't fools either. With enhanced picture quality and secure copyright, this product was clearly superior to VCRs.
According to Bell Labs, it might still be a little pricey right now, but if mass-produced, costs could approach those of VCRs. As for disc copying and production costs, they were overall cheaper than tapes.
Everyone knew that even if DVDs couldn't replace VCRs, there was definitely a market for them. CD players were selling well; does that mean vinyl records had disappeared? Many people were willing to pay more for better picture quality.
...
What William White didn't know was that the people in Japan had already begun to tear apart the 13. Panasonic and Sony were evidently caught off guard by this sudden turn of events.
They'd attended the press conference where the same three TVs, VCRs, MPEGs, and DVDs were displayed.
The difference was glaring all around. Whether they were happy or not wouldn't change a thing.
"Will we get the license?"
"Yes, after several confirmations. There is also room to lower the price of those decoding chips. They'll begin production in Japan shortly."
"The timing could have been better for us by two years. Is our VCR shipping affected?"
"Somewhat, but it was all about that VCD mess. Apart from those with a karaoke feature, our sales saw a significant decline."
"Damn. By the way, what's Sony up to?"
"Sir, they seem to be working on their format."
"Hmm, we can't wait; book me a ticket to Los Angeles. Panasonic barely survived last time; we can't fall behind again. If possible, I'd prefer direct acquisition. By the way, what's the latest news from Europe? Isn't Philips getting involved too? Any updates?"
"Sir, it's looking tough; White system is formidable. They've got a complete solution. The items displayed at the press conference could be used for production right away. And..."
"Why are you stammering? What time is it?"
"Yes, boss, according to reports, those VCD factories in China have already submitted their applications."
"Damn, why the rush?"
"Sir, fundamentally speaking, VCD and DVD are not that different. It's just the video compression methods that vary. As for the optical drive and the disc, it's just a price difference."
"Sigh, now we're really in trouble. It seems China's factory plans must be expedited."
...
William White was quite happy to accept Panasonic's olive branch. It wasn't just because of Panasonic; don't forget, Universal was still in their hands.
With White Films, Disney, and Universal, that was already three major players. Aside from Columbia, the other companies didn't matter as long as you could protect intellectual property.
Of course, there were plenty of unhappy folks. Redstone was particularly frustrated. He not only had Paramount but also continued to manage theater chains and had the video rental business.
For him, any shift was unpleasant. Life was fine as it was; you create a ruckus here, and it would definitely not benefit me.
How about cooperating with Columbia?
Ha, it hadn't even begun. Do you know when the people in Japan will have results?
As for Philips?
He genuinely couldn't understand. This former industry titan was it really like their ridiculous invincible fleet?
The choices left for the old man were truly few.
Thinking of William White made him wince. Damn, that brat had inexplicably caused him to spend a few billion more; now, if he were to throw himself into his arms, he'd likely be laughed at endlessly.
What, should I care about Hollywood's thoughts?
Cough, do you think, why later on did MPEG become so prominent?
If content providers don't support you, it doesn't matter how good your format is. White Films had already declared it wouldn't allow anyone to convert their films to MPEG format.
Any commercial use would be considered a violation and illegal. Once someone was caught selling or viewing their films, they'd initiate legal action.
*****
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