EU begins investigation into Blu-ray deals
PC World and vnunet.com report on the Commission’s inquiry into the negotiations of the movie studios with the licensors of Blu-ray and HD-DVD technology, specifically why so many studios went with Blu-ray exclusively.
The European Union’s antitrust regulator has asked Hollywood studios to turn over information about their negotiations with the developers of high-definition DVD formats, giving them until the end of this week to respond. The European Commission is concerned that exclusive deals struck by some studios with the backers of either the HD DVD or Blu-ray Disc formats may be a sign of anticompetitive activity in the industry.HD DVD and Blu-ray Disc are competing for the attention of movie studios, which are increasingly releasing their films in high-definition format alongside the regular DVDs carrying standard-definition versions of the films. The Commission began looking for evidence of a possible infringement of E.U. antitrust regulations on its own initiative: there have been no complaints from companies in the industry, said Audrey Lemonnier, press officer for the cabinet of European Commissioner for Competition Neelie Kroes.”What exactly is the concern here? That the studios have agreed among each other as to which format to promote? That the “chosen” licensor will effectively protect the content owners’ business model from disruptive innovation? If anyone has further insight, please drop us an email. This is a case to watch.
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