Report: Sony, Toshiba Discuss Single DVD Standard

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http://www.reuters.com/audi/newsArti...toryID=8242617

NEW YORK (Reuters) - Sony Corp. (6758.T: Quote, Profile, Research) and Toshiba Corp. (6502.T: Quote, Profile, Research) are working on an agreement that could come as early as this month to jointly develop a new unified standard for next-generation DVDs, The Nihon Keizai Shimbun reported in its Thursday online edition.
The report said Sony and Toshiba stepped up closed-door negotiations around February to find a resolution to the standoff between their competing products. As the leaders of the two camps supporting rival standards, Sony and Toshiba have waged a three-year battle that involves nearly 200 companies worldwide.

After reaching a basic agreement that a unified standard would be desirable, they are now looking to develop a hybrid standard that takes advantage of each standard's strengths, the Nikkei said.

Sony is said to have proposed using Blu-ray's disc structure and HD DVD software technology. Toshiba has presented the idea of using HD DVD's disc structure, which is closer to that of current DVDs, and employing Sony's multi-layer data-recording technology, the report said.

Although the companies have yet to forge a detailed agreement, the talks are expected to produce a workable solution since both companies are likely to be eager to avoid a repeat of the VHS-Beta videocassette war.

The Nikkei report said Sony and Toshiba have already begun briefing Walt Disney Co. (DIS.N: Quote, Profile, Research) and AOL Time Warner Inc. (TWX.N: Quote, Profile, Research) , as well as Hollywood movie studios, for approval of a unified standard and to pave the way for the signing of an official agreement between the rival camps.