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China develops rival to DVDs

China says it plans to replace DVDs with a "home-developed" next-generation disc format called EVD (enhanced versatile disc).

And it could challenge the ‘Blue Ray’ a next-generation disc technology being jointly developed by global electronics companies such as Sony, Samsung and Philips.

"Players powered by EVD technology are expected to offer as much as five times the quality of image definition compared with DVD players that dominate the market at present, and that is EVD’s biggest advantage over DVD technology," says a Xinhua News Agency report here.

"It (EVD technology) is a landmark achievement for us … we believe it will find its position on the domestic market," it has Ding Kangyuan, vice-director of Disc Industry Promotion Committee of China (DICC) under the China Audio Industries Association (CAIA), saying.

Earlier, "The launching of such a standard signals that China, for the first time, establishes what is expected to help domestic disc player manufacturers shake off their previous dependence on foreign technologies in production," it states.

"As far as I know, the MII (Ministry of Information Industry) will issue the standard next month," it quotes Zhang Yijun, deputy chief engineer of the Shanghai-based SVA Group which has been developing core EVD components, as saying. "We are quite confident in the next-generation digital disc technology, where we will possess our own intellectual property."

SVA is part of a fledgling Chinese digital disc technology alliance initiated by the MII that involves more than 10 domestic enterprises and research institutions in the industry, including a majority of China’s disc player producers, the report continues.

"Operating under a corporate entity called the Beijing E-World Digital Technology Co Ltd, the alliance has been engaged in EVD technology development since 1999.

"While the national standard of EVDs is in the near future, the new disc format is currently under the scrutiny of related global industry organizations before it will be accepted as an international technical standard," Zhang said, revealing, "a large amount of homemade EVD chips are now available as core parts of EVD players that are expected to supply the domestic market from next year.

"Talks with domestic and overseas filmmakers and other video programme producers are under way regarding the market supplies of programmes stored in the EVD format."

China produced over 30 million DVD players in 2002 - almost doubling the figure in 2001 - and nearly 20 million units were exported last year, says Xinhua. EVD player prices will be around US$240, compared with around US$85 for the average cost of a domestic DVD player.

Ding predicts Blue Ray technology, "will not form its large-scale application within the next three years," says Xinhua. "If the software sources of EVDs or video programmes stored in the EVD format can be guaranteed, the players will very likely first enter the high-end domestic market segment where consumers can afford costly display products like HDTV. "

A number of DICC member companies, mainly current domestic DVD player producers, have been paying close attention to the EVD technology’s progress, according to Ding.

"After all, it’s our own technology," he said.

However, adds the story, analystshave pointed out, "that it is hard to say whether EVD technology will be quickly accepted on a global basis, even though it may find its niche in the vast Chinese market.

"And as future EVD players are supposed to be compatible in terms of functions to current DVD players, domestic manufacturers will still have to pay royalties on DVD technology patents owned by foreign firms."

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