Porn could be the key to next-generation DVD war

By Michael Kahn

SAN FRANCISCO (Reuters) - In the battle over next generation DVDs, pornography could prove to be the XXX factor that helps determine a winner.

Thirty years ago, VHS toppled Betamax in part because of the adult film industry, and now some see blue movies playing a key role again as backers of HD-DVD and Blu-ray maneuver to make their formats the standard.

The stakes are high. As prices of high-definition televisions and DVD players fall, backers of the rival -- and incompatible -- formats are looking to tap a home and rental DVD market approaching $25 billion.

Yet so far, neither next-generation format has been able to land a knock-out blow.

James McQuivey, a principal analyst at technology research firm Forrester, said in the VHS-versus-Betamax war, porn provided a significant boost for the winning format.

He also noted the adult entertainment industry has often paved the way with new uses of technology -- such as streaming video on the Internet -- and said porn could help tip the scales in the current DVD format battle.

"If the porn industry wanted to break the logjam of HD-DVD and Blu-ray, it could," McQuivey said. "If they said 'We are going to go with HD-DVD' you would see a few million homes immediately go out and buy HD-DVD players. They have that power."

It is a potential weapon that one side, at least, has ignored. Instead, Blu-ray backer Sony Corp.(6758.T: Quote, Profile, Research) blocked manufacturers from producing porn DVDs in that format -- a move that some say has pushed adult film studios into the camp of HD-DVD camp led by Toshiba Corp. (6502.T: Quote, Profile, Research)