As Next-Gen DVD Battle Heats Up, Adult Companies Weigh In

TOKYO — Amid reports that DVD format-unification talks have broken down between rivals Sony and Toshiba, both sides have agreed to elevate negotiations with a closed-door meeting between company presidents.

News syndication service Reuters today quoted an unnamed source as saying, “We continue to believe in the merits of establishing one format, but discussions up until now have been unable to produce an agreement, so the talks will be taken to a higher level.”

Many DVD industry analysts are speculating that the Papal-style conclave is a last-ditch effort to reach a peaceful resolution before diving headlong into all-out war for supremacy in the next-generation DVD market.

The outcome of the discussions could have far-reaching effects for the adult entertainment industry.

“With so many titles being released in such small quantities, a format war could seriously impact adult,” Hustler Video director Quinn Roberts told XBiz. “It is not cost effective for companies to release in both formats.”

“Widespread consumer adaptation will be much slower during the war, and this will have a direct impact on hi-def sales,” Digital Playground founder Joone added.

Digital Playground is one of about a dozen adult studios, including Cherry Boxxx, New Sensations and Digital Sin, that have already started producing content entirely in high-definition, the format preferred by Toshiba.

Sony, meanwhile, is pushing adoption of a different format called Blu-ray.

“Producers will have to support multiple formats until a clear winner has been determined and this is very costly to everyone, the manufacturer and the consumer,” Joone said of the disagreement.

If the two sides can’t agree on a common format, each will separately release players based on its own technology, essentially leaving it up to consumers to decide which format will win the race.

“It will be like the battle over 20 years ago for VHS and Beta, which were both good systems, but one prevailed and the other went the way of the 8-track player,” Will Ryder, director of “Britney Rears: Wild Back Stage Sex Party” from X-Play/VCA Pictures, told XBiz.

In theory, that could spell disaster for adult companies committed to hi-def, should Sony’s Blu-ray come out on top.

However, if history bares out, adult entertainment typically dictates technology adoption rather than falling victim to it.

By making content available for hi-def players, adult companies may be giving Toshiba a distinct advantage by driving consumer demand, as was the case with VHS, first-generation DVDs and the Internet.

“High-definition adult programming will be one of the deciding factors in the outcome of the current war between Blu-ray and HD formats,” Joone said.

Hustler’s Roberts said he doubts executives at either Sony or Toshiba are losing sleep over which format adult studios prefer, but added, “Certainly, adult produces millions of DVDs every year, and many of its buyers gravitate toward new technology. Adult entertainment could play a significant role in which format gains the majority of the market and the associated hardware sales.”

And for the time being, hi-def seems to be the clear winner among adult companies.

“All things being equal, if HD-DVD discs are cheaper to manufacture, then I’d expect the adult industry to lean toward this format.”

“The Toshiba HD-DVD probably will come out on top due to the lower cost,” Ryder added. “Sony’s Blu-Ray system is great, but I think the adult world will go for a quality system at a lower price.”

Toshiba has announced plans to have a set-top box ready for commercial release by Christmas of this year. Until then, however, all adult companies that have taken the plunge into hi-def can do is sit and wait.

"The hi-def image we see from the camera currently has no standardized set-top delivery format, so all this amazing-looking stuff is stored in our vault waiting for a way to get it to consumer shelves," Scott Taylor, president of New Sensations/Digital Sin told XBiz.

Taylor added that the best solution, from the perspective of the adult entertainment industry, may be no solution at all. "When DVD was introduced and eventually took over, we enjoyed increased sales due to two delivery formats. I look forward to either one of these being the format that competes with DVD, but I may be even happier if they both do," Taylor said.

No official announcement has been made regarding the time or place of the proposed meeting of presidents.

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