Blu-ray (not Blue-ray) also known as Blu-ray Disc (BD), is the name of a new optical disc format jointly developed by the Blu-ray Disc Association (BDA), a group of the world's leading consumer electronics, personal computer and media manufacturers (including Apple, Dell, Hitachi, HP, JVC, LG, Mitsubishi, Panasonic, Pioneer, Philips, Samsung, Sharp, Sony, TDK and Thomson). The format was developed to enable recording, rewriting and playback of high-definition video (HD), as well as storing large amounts of data. The format offers more than five times the storage capacity of traditional DVDs and can hold up to 25GB on a single-layer disc and 50GB on a dual-layer disc. This extra capacity combined with the use of advanced video and audio codecs will offer consumers an unprecedented HD experience.
The name Blu-ray is derived from the underlying technology, which utilizes a blue-violet laser to read and write data. The name is a combination of "Blue" (blue-violet laser) and "Ray" (optical ray).
Despite the different type of lasers used, Blu-ray products can easily be made backwards compatible with CDs and DVDs through the use of a BD/DVD/CD compatible optical pickup unit. The benefit of using a blue-violet laser (405nm) is that it has a shorter wavelength than a red laser (650nm), which makes it possible to focus the laser spot with even greater precision. This allows data to be packed more tightly and stored in less space, so it's possible to fit more data on the disc even though it's the same size as a CD/DVD. This together with the change of numerical aperture to 0.85 is what enables Blu-ray Discs to hold 25GB/50GB.
According to the Blu-ray Disc specification, 1x speed is defined as 36Mbps. However, as BD-ROM movies will require a 54Mbps data transfer rate the minimum speed we're expecting to see is 2x (72Mbps). Blu-ray also has the potential for much higher speeds, as a result of the larger numerical aperture (NA) adopted by Blu-ray Disc. The large NA value effectively means that Blu-ray will require less recording power and lower disc rotation speed than DVD and HD-DVD to achieve the same data transfer rate. While the media itself limited the recording speed in the past, the only limiting factor for Blu-ray is the capacity of the hardware. If we assume a maximum disc rotation speed of 10,000 RPM, then 12x at the outer diameter should be possible (about 400Mbps). This is why the Blu-ray Disc Association (BDA) already has plans to raise the speed to 8x (288Mbps) or more in the future.
Blu-ray is currently supported by about 200 of the world's leading consumer electronics, personal computer, recording media, video game and music companies. The format also has support from all Hollywood studios and countless smaller studios as a successor to today's DVD format.