HD-DVD manufacturers are seeing red over Blu-ray and the buzz this next generation of optical disc technology is causing.

Both entered the market in 2005 and the battle between the two formats is reminiscent of the Beta vs. VHS wars of the 1980s. Confused consumers are feeling unsure of which technology to invest in for their home entertainment needs.

Backers of HD-DVD like Toshiba are feeling the sting of Blu-ray's growing presence. This month Blockbuster Inc. announced that it would rent high-definition DVD's only in Blu-ray format when its 1,450 stores expand their high-def selection in July. The Blu-ray camp, driven by Sony which developed the technology, also enjoyed a boost with the release of "Casino Royale," "Pirates of the Caribbean" and "Spider-Man," which are coming out exclusively in this format.

All major studios except one are releasing films in Blu-ray. Universal Studios is the sole Hollywood bastion to exclusively support HD-DVD. Warner Bros. and Paramount Pictures release films in both formats.

What's more, the rollout of Sony's PlayStation 3 game console, which comes with Blu-ray as a standard feature, boosted Blu-ray's edge. The professional versions of the blue laser technology Sony has developed such as XDCAM, used by broadcasters and AV studios, and ProData (Professional Disc for Data), used for commercial data storage and backup on servers, is also fueling that lead

According to industry experts, HD-DVD and Blu-ray will both need to do more to cash in on consumers changing lifestyles and needs.

"What's interesting is that these two formats are competing not only with each other but with entertainment that can be downloaded so quickly and easily," says Kris Abel, CTV's tech expert. "Apple has already sold movies in the U.S. as downloads on iTunes. People watching online and on cell phones is definitely the trend so these new discs could be the last we see."

Blu-ray vs. HD-DVD

Named for it underlying technology, Blu-ray uses a blue-violet laser to record, rewrite and playback high-definition video and store large amounts of data. It offers more than 5 times the storage capacity of traditional DVD's and can hold up to 28GB on a single-player and 50GB on a dual-layer disc.

Similar in some ways, there are key differences between the two formats.

Capacity: Blu-ray uses a lens with a greater numerical aperture than HD-DVD. It can be focused with greater precision to fit more data on the same size disc. According to Abel, "Sony's discs can hold more data, but that ability isn't being maximized right now on the product that's out there."

Content: With so much support from major studios, many movies may only be available in the future to consumers in Blu-ray format. "This is the big issue for consumers," says Abel. "If you walk into a video store and pick up "Casino Royale", it's only on Blu-ray. If you want "The Matrix," too, that's only on HD-DVD. Suddenly you've got a problem."

Hardware support: This new technology is supported by the Blu-ray Disc Association, a group of 180 major manufacturers of TVs, computers and media. The list includes Apple, Dell, HP, Panasonic, Hitachi, Sony and others. The same is not true for HD-DVD.

"We are seeing companies like LG offering both in one player," says Abel.

Speed: Blu-ray has the potential for much higher speeds than HD-DVD formats. Its larger numerical aperture means it requires less recording power and lower disc rotation speed than DVD and HD-DVD to achieve the same data transfer rate.

Video viewing: Blu-ray can old over 9 hours of high-def video on a 50GB disc, and close to 23 hours of standard-definition video. Also, no Internet connection is needed for basic playback of Blu-ray movies. It's only required to download extras like watching movie trailers, web browsing or transferring copies of Blu-ray movies over a home network.

Will Blu-ray replace DVDs? No doubt its manufacturers hope so, even though industry experts say that blue laser DVDs could take between three to five years to reach a mass market.

For Abel, the Blu-ray experience isn't worth all the hype. "Watching HD on TV today is just so good. I can't see spending two to three times the amount on this technology when the ultimate viewing experience isn't different. The disks look the same to people. The players look the same. Consumers aren't seeing anything that distinguishes the two formats."

Sony, which is backing Blu-ray, recently slashed its roll out price of US$1,000 to US$499. Toshiba, HD-DVD's major supporter, is selling its player for US$299 with a rebate -- down from the original sale price of US$499.

Trend-setting techno-geeks with cash to burn will enjoy the cachet of being the first to own the technology and invite people into their homes to see it. The average family with a couple of kids and bills to pay, says Abel, won't spend that kind of money.

"Why dish out $3,000 to replace the equipment you have when in two years time it could all change again? That's why I'm telling people to wait on buying Blu-ray."

"The bottom line is who's going to make money here," says Abel. Sony and Toshiba tried to reach agreement to share the technology. "Ultimately they both said no," he explains. "Neither one is getting the money they want. In the end I think they're ruining the technology."