In the high-stakes war of high-def DVD formats, there are two major combatants: HD-DVD and Blu-ray Disc. While neither is expected to make a splash until 2006, the battle heats up next year. That's when Hollywood studios need to get ready to manufacture DVDs for the new formats, for players costing roughly $900. The problem is, the studios and retailers aren't interested in selling two new formats. "Retailers don't want to stock multiple versions of movies," says one major studio executive. "The hope is there's some way to come together." Whichever triumphs in the marketplace, industry executives believe a high-definition DVD format will help drive HDTV set sales. With broadcasters and cable networks making the move to HDTV, an HD-based home video format completes the HD content circle. For consumer electronics retailers, it becomes another sales weapon to drive the HDTV conversion. Also, as more prime time series are being produced and broadcast in HD, giving HDTV set owners access to HD versions of their favorite shows increases revenues.
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