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News
Europe Probes Blu-ray For Anti-Trust
The service rolls out in San Diego with more markets coming.
By Phillip Swann
 
Washington, D.C. (July 3, 2007) -- European officials are investing possible "anti-competitive" practices by supporters of the Blu-ray high-def disc format.

That's according to an article in today's Wall Street Journal.

The newspaper reports that the European Commission, the executive body of the European Union, is asking Hollywood studios to provide information on their agreements with Blu-ray companies, which are led by Sony.

Four of the eight major Hollywood studios are backing Blu-ray exclusively in the high-def disc format war between Blu-ray and HD DVD. Consequently, many new video releases are available in Blu-ray, but not HD DVD.

The studios' support has been invaluable in giving Blu-ray a 2-1 advantage in title sales and rentals over the last several months.

Universal is the sole studio supporting the HD DVD format exclusively. The remaining three major studios are releasing titles in both formats.

WSJ writes that the European Commission is probing whether "improper tactics" were used to persuade the studios to back Blu-ray exclusively. A commission spokesman confirms that letters have been sent to the studios asking for more information.

The newspaper reports that HD DVD supporters have lobbied the European Commission to investigate the studios' relationship with Blu-ray.

The European inquiry would not affect Blu-ray's position in the United States. However, an unfavorable finding could put pressure on officials here to open their own investigation.

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Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.


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