Posts Tagged ‘sony’

Thinking of Switching Your Campaign to Blu-ray?

Thursday, October 30th, 2008

boborzack_2.jpg DVD Blu-ray Mastering & Replication: Evolution vs. Revolution
Similar to the early days of DVD, we recognize that as the new Sony DVD Blu-ray format increases in popularity, and as more replicators get into the business, costs will eventually go down. Not so similar is the speed of which this format will take hold in the marketplace. VHS to DVD was revolutionary in both picture quality and ease of operation. But now we also have 16:9 wide screen TVs, the major expansion of digital broadcasting and DVD 1080 upgrade players all being bought by consumers at a feverish rate.

If you view DVD Blu-ray for the first time, but are already a seasoned viewer having a wide screen 16:9 TV and digital broadcasting, the average persons response is oh…that’s nice, but it is no longer knock your socks off better. And this reaction coupled with the high cost of Blu-Ray players and discs will make this new format evolutionary, not revolutionary.

Yes, the Blu-ray players are backward compatible (they will play your existing DVDs), but until player costs and disc costs come down, we don’t see the average consumer rushing to their local electronics store to buy one. Only when your household may need another player for whatever reason, will you consider Blu-ray. Back to the content owner, replicator and associated license fees.

Understanding AACS License Fees
First, basic fee is a deal made directly with the rights holder and AACS (Advanced Access Content System). This is the consortium that holds all the Blu-ray patents, and it seems they want a return on their investment back very quickly. The simplest arrangement between the rights holder and AACS is called a Content Provider License. For a onetime fee of $3,000, they will give you a license number to work with Blu-ray replicators. The replicator cannot accept an order from anyone without this license and associated license number.

So now you have your license and you’re ready to replicate. Well, not quite. When the material is sent to the replicator, you will then be charged the following fees by the replicator (which are also mandatory and by the way, keep changing). First you need the AACS Media Key that encrypts the content of the disc, an AACS Content Certification for that title, and finally an AACS Order Processing fee. All this for each and every Blu-ray title and the average costs for all three is approximately $1,700.

So you have now spent $3,000 for the Content Provider License and you will be spending an additional $1,700 for keys, certification and processing per title.

Now we are finally ready to replicate DVD Blu-ray if you still have any money left. Whew, I’m exhausted. Like I said at the beginning of this article, evolution vs. revolution.

Bob Orzack is vice president of Cine Magnetics Digital & Video Laboratories.