The story really starts with the development of the media. Until the format of recording video on it was finalized, developing a player to replay that recording was not feasible. One had to be sure that one format would become the industry standard so that a player could be made for that standard. Whoever produced the recording or the player, the media and the reproduction machine would work interchangeably with products from other companies. Most benefit accrues when just one standard dominates. Like the VHS and Betamax video tape standards, and the Blu-ray versus HD- DVD in the recent past, it all started with two standards. It is good that in all cases one standard survived. Betamax and HD-DVD died leaving the industry with one standard.
Two proposals for DVD formats were floated by different groups of companies in the entertainment business. One was the MMCD (Multi media compact disc) format floated by the likes of Sony and Philips among others. The rival proposal known as the SD (super density) format had promoters in the form of Toshiba, Matsushita and Time-Warner. Rather than fighting it out in the market place with products, one format introduction was going to be beneficial for everybody around. The SD camp had approached IBM for advice on file systems and IBM intervened and ensured that both camps agreed to a common format. The format specifications were finalized by Dec 1995. Thus there is no single inventor of DVD. The technology is owned by a group of ten companies known as the DVD forum that include Hitachi, JVC, Matsushita, Mitsubishi, Philips, Pioneer, Sony, Thomson, Time Warmer and Toshiba.