China is set to begin volume production of its new HD optical disc format CBHD (China Blue High-definition Disc) in the 4th quarter of this year with Shanghai United Optical Disc being the first manufacturer to set up a production line for the disc format, according to this DigiTimes Systems report. This new disc format was up until recently known as CH DVD and the new format will initially be targeted at the China Market.
One significant advantage with CBHD is that an existing DVD production line can be refitted to manufacture CBHD discs for just over 1/4 the cost of setting up a BD disc production line (US$800,000 vs. US$3 million). CBHD also requires significantly lower royalty fees than Blu-ray per licensed player of just 55 Yuan (US$8.10)) per player.
However, one major issue the new Chinese format faces is that it has yet to get backing from the major Hollywood studios, unlike Blu-ray which now has widespread backing. Entry level Blu-ray disc players have also fallen to US$299 in the US, a fraction of their original cost, which means that the first CBHD players will face serious price competition with Blu-ray players once launched on the China market.
Who gets the 55 Yuian royalty?? 
Yeah, I thought it was "From each, according to their ability. To each, according to their need." What individual person or entity could possibly need that money? The royalty must go to the Chinese government to pay for Chinese missile warheads.
Okay, the royalties probably go to support the Chinese government free universal accupuncture care program.
Hey, that was me above. I just entered my email address wrong.
More money for the Chinese version of HD DVD means less money for Blu-ray. I wish them well.

I admit that it would be nice if at least 3 big studios went over to this format to give it a better run but I have a feeling that Blu is still going to dominate. I am not an anti blu guy or anything just s theory that I think which is another format (CHBD) will die just like HD-DVD did. We need to really just move forward no matter if we like the outcome or not. As far as the Need to upgrade hardware for the true PQ of BD well that means nothing and doesn't even hold water as we are in the US that is having to buy a digital TV to keep up or be able to watch TV after 2009 of Feb.
No-one cares about this format, it will die just like the EVD did.
I doubt very much that this format will even get outside China. This isn't their first HD disc format and none of them came out of China.
If CBHD want studio support, first thing studio gone check how much DRM it can take. If at all.
