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To keep it simple, this means that DVD players and DVDs are labeled for operation on within a specific geographical region in the world. For example, the U.S. is in region 1. This means that all DVD players sold in the U.S. are made to region 1 specifications. As a result, region 1 players can only play region 1 discs. That's right, the DVDs themselves are encoded for a specific region. On the back of each DVD package, you will a find a region number (1 thru 6). The geographical regions are as follows: REGION 1 -- USA, Canada REGION 2 -- Japan, Europe, South Africa, Middle East, Greenland REGION 3 -- S.Korea, Taiwan, Hong Kong, Parts of South East Asia REGION 4 -- Australia, New Zealand, Latin America (including Mexico) REGION 5 -- Eastern Europe, Russia, India, Africa REGION 6 -- China REGION 7 -- Reserved for Unspecified Special Use REGION 8 -- Reserved for Cruise Ships, Airlines, etc... REGION 0 or REGION ALL -- Discs are uncoded and can be played Worldwide, however, PAL discs must be played in a PAL-compatible unit and NTSC discs must be played in an NTSC-compatible unit.
The end result is that DVDs encoded for regions other than Region 1 cannot be played on a region 1 DVD player, also, players marketed for other regions cannot play region 1-stamped DVDs