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Blue-ray production gets the green light in Shanghai plant

BLUE-RAY disc manufacturing at the first plant on the Chinese mainland started in Shanghai yesterday, fueling the high-definition entertainment business in the country.

After winning the international format war for next-generation optical discs after DVDs, this is another expansion for Blue-ray.

Blue-ray discs have a storage capacity of up to 50GB, 10 times the volume of ordinary DVDs. They are fully compatible with high-definition displays in television and 7.1-channel sound surround. The name Blue-ray comes from the 405-nanometer blue-violet lasers that are used to read and write data.

The Shanghai Blue-ray disc plant in the Songjiang Industry Zone is a 70-million-yuan (US$1.03 million) investment by Shanghai Epic Music, a joint venture of the SMG-controlled Shanghai Synergy Culture and Entertainment Group, the Shanghai Jingwen Investment Co and Sony. Its monthly production capacity is 500,000 Blue-ray discs. The Shanghai plant will produce for domestic and overseas markets.

"We should seize opportunities in the entertainment industry, mainly for technological upgrading and innovation, during this global economic and financial crisis," said Li Ruigang, CEO of SMG, the city's biggest media company.

Up to now about 30 Blue-ray films have been released in China, and Sony Pictures aims to publish another 100 films soon for the domestic market. The company is also considering releasing Chinese films to "introduce Chinese culture to the world," said Matt Brown, Sony Pictures executive vice president of international business.

For consumers, Blue-ray is at present a major investment needing an HDTV which costs about 10,000 yuan, a Blue-ray player,?such as PS3, which costs between 2,000 and 10,000 yuan or more. Blue-ray films cost up to 200 yuan, about 10 times the price of a DVD.

Blue-ray discs will come down in price when international production increases in the future but not soon, Sony said.

As well as the high price, Blue-ray has a challenge from a Chinese disc even if it has become the international HD disc standard.

The local disc is the CBHD (China Blue High-Definition), which shares some similarities with HD-DVD.

Shanghai United Optical Disc has established a production line for CBHD and started production in the fourth quarter last year.

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