TIME WARNER AND TOSHIBA have come up with a digital video disk that may do in the Sony-Philips rival. On Jan. 25, the two lined up eight of the world's biggest electronics and showbiz companies to back its system of encoding movies on familiar five-inch silvery compact disks. Sony said it would study the rival system--leaving room for retreat. That's sensible. Unless there's a compromise, both camps uill have incompatible $500 players on the market by yearend.

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