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AVD, EVD and the economic underpinnings of new standards

Independent consortia from Taiwan and China are working on a new DVD format that
will allow manufacturers of discs and players to avoid paying royalties
for the use of technology to Japanese, American and European companies.
Over a year ago, China announced the development of the Advanced Versatile Disc format
(AVD) – for mainland, Taiwan, Hong Kong and Macau. Some considered
this step is boasting, a gimmick of Chinese manufacturers, designed to be more profitable
to solve the issue of licensing fees to the DVD forum for yourself, however, creating
Taiwanese consortium makes you look at the problem differently.

A few months after the AVD’s “viability” assessment, 19 Taiwanese
companies without loud announcements in April 2021 began working on the standard
a new generation that will not use the format proposed as
Basic DVD Forum. Taiwan standard called Enhanced Versatile Disc
(EVD), compatible with Chinese AVD; the capacity of these drives is potentially several
more readable than today’s single-sided single- and double-sided DVDs
a red laser will be used.

The consensus among the companies is that with Taiwan’s help, China will try to
repeat early attempts when Super Video CD (SVCD) was developed as the opposite of
Video CD, which allowed producers to ditch the payments to Philips, JVC, Sony and Matsushita.
Although the share of DVD player sales in China is small, it is increasing.
China is forced to speed up work on the standard and the increasing pressure from the outside
European companies requiring technology fees, and
falling prices for DVD players.

DVD6C Licensing Group of Hitachi, Matsushita, Mitsubishi, Toshiba,
JVC and AOL Time Warner unveiled a plan to attract local Chinese
producers to the group payment scheme. China was asked to sell devices,
designed for the local market, duty-free until December 31st of last year. truth,
this option was only given to licensed manufacturers
until June 30, 2021.

On the other hand, the so-called 3C group, made up of Philips, Sony and Pioneer,
also require Chinese manufacturers to start paying royalties for
DVD players. Each party that produces, uses, imports or
sells products for which there are patents, should contact the groups (6C
or 3C) and pay them separately. Moreover, since the format
DVD uses MPEG-2 format, royalties must also be made to licensed
to MPEG LA.

Thus, the total deductions from one device are 15-20 dollars.
In addition to MPEG, 6C and 3C, this includes payments from Dolby Laboratories and developers
various copy protection systems. Most Chinese manufacturers
refused to pay in the same way as refused to pay for a Video CD.

Despite the fact that there are still many unclear details in the case, many industrial
sources suggest the new format will pave the way for high-definition video in China
resolutions, some talk about HD, some talk about D1 – during the Olympic
games in 2021.

Several sources confirm that combining EVD and AVD players will allow
play discs of both Asian formats and DVD. Considering that DVD
are currently in high demand in the market, an attempt to develop a player,
supporting the new format, but not playing DVD, can be evaluated as
suicide. The next question is whether DVD license holders will be able to follow their footsteps
Chinese fellow OEMs with products designated as EVD or
AVD players. The question is whether a proprietary player can be read with
support EVD / AVD and DVD DVD player or not.

Related links:

  • China
    and Taiwan develop proprietary DVD format
  • New
    EVD standard officially adopted by the Chinese government
  • FVD:
    new DVD alternative in Southeast Asia

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