Sony and Partners Announce New Blu-ray Licensing Firm, Player Pricing to Drop by Mid-Year

Paul Lilly

Despite winning the high-definition format war, Blu-ray adoption appears to be at a standoff with most consumers. Not everyone is willing to pay the relatively high prices associated with Blu-ray players, and that decision has been aided by the prominence of streaming media (a la Netflix) and upconverting standard DVD players. And it looks like consumers were right to wait.

Panasonic, Philips, and Sony have jointly announced plans to create a single licensing firm for Blu-ray patents, which should help drive prices down across the board. The new license is expected to cover all the essential Blu-ray patents to be overseen by an un-named licensing company in the U.S and run by Gerald Rosenthal, former head of intellectual property at IBM.

"By establishing a new licensing entity that offers a single license for Blu-ray Disc products at attractive rates, I am confident that it will foster the growth of the Blu-ray Disc marekt and serve the interest of all companies participating in this market, be it as licensee or licensor," Rosenthal said .

As it stands today, licensing Blu-ray requires talking to each of the three partner companies, but under the new plan, the group estimates the cost of a license to be "at least 40 percent lower than the current cumulative royalty rate." How much of that ends up being passed on to consumers remains to be seen, though we won't have to wait long to find out. The new plan is expected to be introduced by the middle of the year.

Image Credit: Sony

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