Macrovision's quarterly earnings call was held last Thursday afternoon. In the Q/A following the standard presentation of results and management's comments, Sasa Zorovic, who covers Macrovision for Goldman Sachs, asked about BD+ security for Blu-ray.
A (CEO Fred Amoroso): Sure. So, BD+, or SPDC, there’s a couple of nuances, and I’ll apologize now if I get a little more detailed than maybe you’ve asked for, Sasha, but let me describe it. We’re seeing increasing progress on the ability to have Blu-ray adopted as a DVD medium Hi-Def. Secondly, we’re seeing signs that there will be lower cost Blu-ray players in the market by the Christmas shopping season, so that will improve consumer take-up. If you look at NetFlix, for example, while Netflix has over 100,000 DVDs, they’ve increased fairly substantially—still small numbers—but increased fairly substantially the percentage of Blu-ray DVDs that they have. I think they have over 700 now. So we’re generally seeing positive industry trends on a macro level.
Now on an operating level, a couple of things are going on. One is that today the agreement around the deployment of BD+ by the industry that controls it, if you will, 2C it’s called, a couple of major CE manufacturers, have dictated that the technology can really only be applied by major billion dollar revenue studios. We are in the process of becoming a member of a group called ECD or sign an ECD agreement, that would allow us to actually author, if you will, the BD+ technology on Blu-ray DVDs for all studios even less than billion dollar studios, which would give us a very strong position in the marketplace. Those conversations are going now and we hope to conclude them in the next 60 days.