There's no room for a third high-def format

DOES THE MARKET need a third high-definition format and can it succeed? For some time now we've been hearing about a maverick third option, HD VMD (Versatile Multi-layer Disc ) from a UK-based outfit called New Media Enterprises. This week, it managed to carve up a nice slice of the media pie with the news that it'll be launching its first high-definition player in January at CES for around - wait for it - £95. I can see Cornflakes spattering monitors and laptops around the globe.

In comparison, £95 wouldn't pay for the remote control of the forthcoming Blu-ray players and even the cheapest HD DVD player from Toshiba costs four times that - if you could get your hands on one in the UK, that is, which is highly unlikely.

When I first heard about the existence of VMD, my reaction was a mixture of annoyance tinged by curiosity. Annoyed because another format means more confusion but interested because the discs are based on low-cost red laser technology, the same used for making DVDs and CDs. The other two use blue lasers which cost a lot more and which could be made compatible if Sony and Toshiba weren't so damn greedy.

The HD VMD discs themselves are capable of storing up to 40GB on different layers and the company says that the technology will also allow for both Blu-ray and HD DVD content to be stored on a single disc, just at different depths. Why exactly you would want that, I'm not sure, but at least it's an option. So great, a third disc format that is very cheap and there's a player on the way that even your granny on her crappy state pension could afford. Excellent. It looks good to me. What's the snag? And why aren't the HD rivals quaking in their boots?

There's the rub, you see, HD VMD has as much chance of becoming a mainstream technology on this side of the world as I have of fixing my PC without swearing obscenely. This is not to say it can't succeed, it just won't be here in the Western world where we'll be selling our organs on the black market to afford Blu-ray/HD DVD players and discs.

First off, it has no major backers. None of the household consumer electronics companies have announced support for the format. There are no big brand VMD players on the horizon and major disc producers have not exactly been banging down NME's door. There are also no movies that we know of and, I don't know about you, but I would have thought HD movies are an important part of launching any new HD system. Hollywood movie studios have shown no interest in the new format despite it knocking around a for the best part of a year and last, but not least, there's no VMD recorder yet. OK, there's hardly any Blu-ray and HD DVD recorders either but at least they were always on the cards, if laughably late.

Now, if you like Chinese and Bollywood movies, you'll be in luck since NME will be concentrating its efforts there - at least to start. There is a massive market opportunity, no doubt. After all, while the Western world largely bypassed the whole Video CD (VCD) movie format, it's huge over there. Very popular with pirates too. HD VMD could easily become the HD platform of choice for pirates, but also for the mainstream market since both the discs and players will be dirt cheap. The fact that HD VMD does not implement the dreaded DRM copyright technology being adopted by both Blu-ray and HD DVD is another key reason why it will not take off here. Movie studios want to make sure their celluloid investments are protected, after all.

There is every chance though that HD VMD could become a profitable niche over here, ifonly for enthusiasts and people less worried about route their movie content traveled to reach their door. You can pack a lot of DVD movies on a single 40GB VMD disc - illegally, no doubt - and while the media hype is HD, DVD is going to remain the king of movie formats for most people for a few years yet. µ