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When and where these problems do happen, they could be due to quality of media/material used by the DVD-replicating facility in manufacturing DVDs(especially if major freezing/skipping happens after layer change in dual-layer DVDs), and/or compatibility issues with some makes/brands/models of DVD players [and/or simply low-quality / error-prone replication processes combined with a "don't care" attitude.
Needless to say, it's the responsibility of the DVD-replicating facility as well as DVD distributors to come out with DVDs that have reasonable quality and are compatible with / playable on all / most brands of DVD players

[i]and not just on exceptional/newer models
My first posting here, and not a very comfortable topic to pick on, but i guess, this needs to be addressed, and so, here goes. i probably will get shot for this, but let me try and address this issue , as honestly as i can, so that the story is heard from both sides. i speak only for my company, KRCD, and not for the entire industry as a whole and all comments and responsibilities are mine, personally.
This is a long post, and i have been in two minds if i should write this at all, but i think that there should be a meaningful dialogue, and hence have taken the liberty of writing this.
New Deep, you are absolutely right. it is the responsiblity of the replicating facility to ensure that a perfect good disc leaves the facility, and that you as the consumer of a legitimate DVD have the right to buy a good product, (atleast which plays well). I think, that this is the bare minimum, that we should offer our valued customers.
Not to plug my company here, but we are trying very very hard to ensure that this is the case for all our products. the process is not as simple as it seems, as the issues could arise at either the pre-mastering/authoring, glass mastering/replication, or at the consumers end.
i could go into a detailed explanation on each stage, if needed, in a subsequent posting, but what we find, in general, and based on our experience of DVDs replicated till now, that most errors like skipping, freezing at the layer end, chapters being skipped, missing content, etc arise out of the authoring stage.
On the other hand, certain playability issues, (not playing in a player, some particular types of skipping, freezing) can be attributed to the replication and glass mastering.
What we do at KRCD is, the following steps in Quality control:
1. Play the entire DVD on a standardised player
2. Play the same dvd on a bank of players of different makes, and a couple of PCs, to check compatibility with certain brands, depending on the regions where the DVD is to be released,
3. In case of any discrepancies, check with the original source, if the issue is in the source or in the replication process. (We are one of the very few, to have the capability to check this.) And in case of the issue being in the source, inform the customer accordingly.
4. and finally, A bit-to-bit verification of the replicated DVD with the source.
This is over and above, a test batch check for the signals recorded on the DVD for over 30+ parameters to ascertain that the DVD is manufactured as per the specified DVD specs, and a 100% automatic surface inspection at the manufacturing stage, and a 100% manual pre-packing inspection. (for removing any discs with surface scratches/marks)
Furthermore, we also calibrate our equipment on a regular schedule, to ensure that the products which are manufactured, meet the specifications for DVDs. We also manufacture DVDs for a lot of prestigious companies, and since our production is mixed (local/export/indian languagues/international titles), we have to maintain one common high standard for all the products we manufacture, as we cannot maintain varying quality standards for various customers. hence our raw materials, processes, quality control standards all have to be consistent.
Normally, this process is more than adequate to detect and prevent any "defective" DVDs from going into the market,and eventually in your hands. the idea is, to ensure that the customer gets a perfect product.
In my experience, we have located most faults very fast and taken corrective actions to prevent this from arising in the future orders. Today, I can say, with a certain degree of certainity, that we have built up expertise to almost guarantee playability of the Discs made by us, across all players. (*conditions apply)
Having explained of how the DVDs are manufactured by us, let us address the question:
Q. Why DVDs do not play on all players?
A. It could be either the dvd is manufactured out of spec, or the player is out of spec, or the player has a very low tolerance to "out of spec" DVDs (the very high end players)
Q. Why would a replaced disc work, whereas the first disc did not?
A. In most cases, we find that the first disc may have been scratched or damaged, (DVDS are very very delicate and small scratches and dust do cause immense playability problems). Normal handling, keeping it face down, loose discs in the boxes, fingerprints etc. can cause skips, freezes and jumps.
and yes, there is always the issues where entire chapters are skipped, some menu options do not work, languages are missing, picture quality is bad, sound quality dips at sometime during the movie, but the video is fine, etc etc are also
arising out of the authoring, for which the replicator cannot be held responsible.
You do know, that the authoring stage, factors like Colour Systems (PAL/NTSC)video/audio quality, screen format, region coding, copy protection, subtitles, are all determined and the project/Movie made, and then recorded into an image file, and sent to us for the final manufacturing. These come to us as a locked image, on which we cannot do any editing or corrections.
Anyways, i do realise that there would differences in each companys products and this is a complex field, which we are STILL learning every day! but i can assure you, that all our customers and KRCD, are working very, very hard, to ensure, that you do get the finest quality on Home Video and enjoy your purchase of legitimate products, since eventually, all our jobs depend on customers continuing to buy legitimate products.