China is set to begin volume production of its new HD optical disc format CBHD (China Blue High-definition Disc) in the 4th quarter of this year with Shanghai United Optical Disc being the first manufacturer to set up a production line for the disc format, according to this DigiTimes Systems report. This new disc format was up until recently known as CH DVD and the new format will initially be targeted at the China Market.
One significant advantage with CBHD is that an existing DVD production line can be refitted to manufacture CBHD discs for just over 1/4 the cost of setting up a BD disc production line (US$800,000 vs. US$3 million). CBHD also requires significantly lower royalty fees than Blu-ray per licensed player of just 55 Yuan (US$8.10)) per player.
However, one major issue the new Chinese format faces is that it has yet to get backing from the major Hollywood studios, unlike Blu-ray which now has widespread backing. Entry level Blu-ray disc players have also fallen to US$299 in the US, a fraction of their original cost, which means that the first CBHD players will face serious price competition with Blu-ray players once launched on the China market.
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