Competing head on with Blu-ray and HD DVD with the cheaper red laser-based hidef alternative high-definition versatile multilayer disc (HD VMD), New Medium Enterprises disappeared from the radar screens this Summer only to re-emerge, apparently, as Royal Digital Media (RDM), this time associated with encryption provider DreamStream, both under Anthem Digital's umbrella.

DreamStream says it will employ military-grade encryption to secure Royal Digital Media's "new optical media format, which exceeds Blu-ray's HD capabilities." The company's security capabilities are achieved through the use of its proprietary, 30-round, 2,048-bit European Encryption Solution (EES). For recollection, AES encryption, used in Sony's Blu-ray discs, relies on a 128-bit system.

The deal marks the first time a military-grade encryption has been implemented in the copyright protection of commercial motion picture discs. "DreamStream and RDM's technologies align perfectly, as they both rest exponentially beyond the standards currently being employed," said DreamStream's Chief Development Officer Ulf Diebel, in a statement issued at the signing of the deal in Paris. He reminded that in 2006, a hacker known as "Muslix64" defeated Blu-ray's encryption and since that time, "Sony's system has been faced with continual security breaches."

RDM says it has developed "a high-definition system that exceeds the capabilities of Blu-ray. RDM's technology offers storage capacity for up to 100 GB on a single disc [whereas] Blu-ray discs can only hold 50 GB of data. [...] Because RDM's system is based on inexpensive red laser technology, their players are expected to sell for much less than Sony's, which routinely sell for hundreds of dollars."

The retail prices for RDM's players and discs are expected to "equal those of the traditional DVD format, greatly undercutting Blu-ray," said Diebel. RDM's format is scheduled to become publicly available "by the beginning of 2009. Two retailers have already placed orders for the first run of RDM's players. RDM is currently in negotiations to release their technology throughout Europe and Asia."

If all this sounds familiar that's because it is. Royal Digital Media's Chief Executive Officer is none other than Eugene Levich, formerly Chief Technology Officer of the now defunct New Medium Enterprises, developer of the red laser-based High Definition Versatile Multilayer Disc format (HD VMD), whose technological roadmap pointed to disc capacity of 100GB and beyond.

This has the hallmark of the same HD VMD technology repackaged under the RDM name. Indeed, entertainment pioneer Michael Jay Solomon, Chairman of Royal Digital Media Ltd, describes RDM as "a provider of affordable, high quality HD discs and playback machines to compete with Blu-ray. RDM provides the world’s first low-cost True High Definition solution, utilizing today’s Red Laser Technology." Solomon was formerly Chairman of New Medium Enterprises, a detail strangely omitted in his otherwise comprehensive CV posted on his website.

In September, Solomon was named Chairman of the board of directors of Anthem Digital, a global media and technology company "creating and distributing content, video games and social networks through current and future mediums." Parent company of Anthem Pictures, Anthem Digital is setting up a unified joint-venture with both Dreamstream and RDM "to create a truly global digital media studio."

To add to the confusion, in a blog in February, DreamStream's Diebel made reference to the launch of his company called New Media Entertainment (NME), (fortuitously ?) keeping the same acronym as New Medium Enterprises which filed for suspension of activities with the US Securities and Exchange Commission on 12 June of this year.

"RDM's technology can be implemented into existing DVD production processes through the integration of a proprietary software and firmware system, said RDM's Levich. The only potential hardware modification is, "at most, the simple replacement of a single chip." As such, existing DVD manufacturers will be able "to integrate RDM's technology with only minor modifications to their production processes."

Moreover, "an innovation in data processing enables RDM's players to drastically enhance the playback quality of regular DVD content," said Diebel, describing what looks like DVD upscaling technology.

DreamStream says the incorporation of its encryption into RDM's system will thwart the piracy of digital content. The content of RDM's discs will only be able to be read by RDM's players, thus, ensuring that the content cannot be copied and illegally distributed. "Because of the extreme marketability of RDM's technology, this deal is very valuable to DreamStream," said Diebel, boasting that "the projected value of this contract is more than $200 million over the next five years.

In July, DreamStream had to issue an apology to the Motion Picture Association of America over its claim that the MPAA had endorsed the company's encryption technology, when in fact, the MPAA had only completed an initial assessment.

DreamStream had announced the development of a new video content distribution platform called Gum.bo "the affordable IPTV channel solution." Utilising the company’s 2,048-bit encryption, the platform is to enable end-users to view video content without allowing the files to be saved or copied. Plans called for an end-of-April launch. It has yet to take off.

Story filed 30.10.08