See

http://www.homemediamagazine.com/

today for an article in which the TW COO advocates same-day DVD and VOD release of new titles.

I read this kind of article all of the time but was particularly struck by this one. The position taken is very forceful.

We seem to assume that the studios are as interested in the format war as we are, but I don't think so. They seem very caught up in downloading/VOD/etc. and somewhat non-plussed by the format war.

A year ago, I would not have thought I would be saying this, but I am concerned. The longer the format war continues, the more likely it is that these solutions will gain additional strength, sapping the energy we would like to see in HDM.

VOD will not be high-quality. There will be no argument about which codec to use, which lossless audio is best. It will be heavily compressed. It will also not be collectable. It will be a cheap fix.

As we continue to egg the format war on, routing for whichever of two nearly identical formats we prefer, maybe it is time to focus on stopping the format war and moving on to adoption of an HDM format.

delete.

delete? why? I think his comment has merit. VOD is not going to cater to us PQ/AQ nerds.

delete? why? I think his comment has merit. VOD is not going to cater to us PQ/AQ nerds.

Unless the downloads are big enough, lol

I wouldn't sweat it too much... it's just Warner talking, and not that they're not a huge player, but their thoughts are in part seemingly premised on the fact that they also control the VOD channel via their cable operations. The executive who made these comments is in fact in charge of every major division in the company (of course, as he's the COO), so consider his stance as reflecting more the cable side of things rather than the studio side. His responsibilities include: Time Inc., HBO, Turner Broadcasting (CNN, TNT, TBS, Cartoon Network), Warner Bros. and New Line Cinema, Time Warner Cable and AOL.


I doubt that FOX, Sony, Universal, and Paramount are as excited about same-day DVD/VOD. Disney probably not as much as Warner, but potentially more than the above four - though who really knows.

If you notice, Warner execs are always making call-to-arms for the industry that reflect their own corporate interests in a very obvious way.

Correction to above: Sony is undoubtedly interested in serving out VOD downloads. They're already providing trailers on the PlayStation Network they're preparing to unveil a TV and Movie download service across PSN soon I'd wager, in the same vein as Microsoft's Xbox Live Marketplace. It wouldn't cost them much of anything to make movies available as downloadable rentals in the same way, particularly as they are assured that every PS3 owner has a HDD to store content on.

The rest of the studios aside from Warner are probably interested (less overhead cost and no logistics problems), but have no vertical integration vested interest in doing downloadable content.

Correction to above: Sony is undoubtedly interested in serving out VOD downloads. They're already providing trailers on the PlayStation Network they're preparing to unveil a TV and Movie download service across PSN soon I'd wager, in the same vein as Microsoft's Xbox Live Marketplace. It wouldn't cost them much of anything to make movies available as downloadable rentals in the same way, particularly as they are assured that every PS3 owner has a HDD to store content on.

That's a good point, but saying that Sony will be interested in VOD - obviously so - is not the same as saying they will be interested in same-day DVD and VOD releases; lacking the later does not cripple the former. You're right though that I completely overlooked the PSN.

While I would expect the PSN movie offerings to flesh out very quickly when that feature comes on the scene, at the same time I think that contrary to Warners claims, studios may not buy into the "no effect on DVD sales" thing. It would seem natural for them to be suspicious of it, and like many companies Warner has a way of having a poll ready to fit any situation. Their recent claim that "customers prefer combo-discs" comes to mind.

But Sony truly might be a great insight into the minds of the studios, as Stringer will be uniquely positioned to manage the strategy. As he comes from a strong media background, and headed Sony Pictures before becoming CEO, I think it'll be interesting to see what Sony does end up doing; presumably, the strategy should at least in part reflect a studio execs vision of the ideal.

this is exactly what microsoft wants. good news for them, bad news for all videophiles.

I don't like the idea.

I saw a commercial for TMNT and it said it was on VOD and DVD the same day.

delete? why? I think his comment has merit. VOD is not going to cater to us PQ/AQ nerds.

i meant delete my post...not his.

TW COO: Industry Should Adopt Same-Day VOD, DVD

A year ago, I would not have thought I would be saying this, but I am concerned. The longer the format war continues, the more likely it is that these solutions will gain additional strength, sapping the energy we would like to see in HDM.

VOD will not be high-quality. There will be no argument about which codec to use, which lossless audio is best. It will be heavily compressed. It will also not be collectable. It will be a cheap fix.

As we continue to egg the format war on, routing for whichever of two nearly identical formats we prefer, maybe it is time to focus on stopping the format war and moving on to adoption of an HDM format.
“Analysts also warn that day-and-date VOD could draw consumer attention away from high-definition formats.”

^ from...............
http://www.videobusiness.com/article/CA6436163.html

Sony is undoubtedly interested in serving out VOD downloads..........

The rest of the studios aside from Warner are probably interested (less overhead cost and no logistics problems), but have no vertical integration vested interest in doing downloadable content.
"Every major studio with the exception of Sony Pictures Home Entertainment is currently running tests with Comcast and Time Warner cable to see if releasing movies on VOD the same day as their DVD release would impact the disc business."

^ from…………..
http://www.videobusiness.com/article/CA6436163.html

The TW COO would want this because it would be revenue diverted from theaters directly to TW as a content provider and cable operator.

It is clear to see why they would want this, it isn't clear that consumers want it, at least not in its current form.

The TW COO would want this because it would be revenue diverted from theaters directly to TW as a content provider and cable operator.

It is clear to see why they would want this, it isn't clear that consumers want it, at least not in its current form.
...and especially not at its current pricing (Transformers was something like $49US VOD on opening day, right?).

And now the facts . . without the whitewash done on Disney and why TW wants D/D VOD (SD PQ):

DISNEY's FALLING VIDEO REVENUE:

In the studio entertainment division, however, operating income slid 20% to $192 million, with no home video title comparable to the prior year’s The Chronicles of Narnia: The Lion, the Witch and the Wardrobe, which sold more than 18 million DVDs. Revenue in the division was up 4% to $1.8 billion.

http://www.videobusiness.com/article/CA6464900.html

Time Warner’s main bright spot for the period was its cable business, whose revenue shot up 59% to $4 billion. This boost came largely from an increase of cable system subscribers, including 184,000 additions to Time Warner Cable’s digital video consumer base, which now totals 7.7 million subscribers.

Time Warner did tout the fact that its Warner Home Video division was ranked No. 1 in U.S. DVD sales for the first half of the year, capturing an 18.4% share of the entire market.

http://www.videobusiness.com/article/CA6464851.html

If you notice, Warner execs are always making call-to-arms for the industry that reflect their own corporate interests in a very obvious way.
In the high-def optical disc war, WB reminds me of Clint Eastwood in A Fistful of Dollars.

But that aside, my greatest fear is that there has been a new trend recently with major Hollywood studios to place digital distribution directly under the same exec as homevideo....... :eek:

for example, witness the reshuffle at Uni last April with Craig Kornblau acquiring that duty when previously it was under someone else.

I think the studios were looking to HDM a few years ago as being a vast new territory of sales. Catalogs would readily be converted to HD (using already created 1080i cable masters) and would sell just like they did on DVD.

It didn't work.

The main reason is the format war of course, which has held down adoption and kept a limited demographic as the only buyers.

But more and more it looks like HDM will be at best a REPLACEMENT for DVD, even after the format war ends. It will prop up DVD sales, perhaps, keeping them from fallling, but no big increase.

Catalog titles will sell in HDM but not automatically, and the studios will have to work for the business by creating expensive new masters, multi-cut editions, and new special features.

As realism sets in (and the format war drags on), VOD/downloading is now the new frontier for increased sales and profits.

You can feel the excitement in their voices when studio execs talk about these things.

DVD and Video On Demand are mostly the same quality now anyway.

What I'd get REALLY excited about is releasing the HD/BD discs in advance of both DVD and VOD, the same sort of prime position that DVD used to get.

If you could get HD media 30 or 45 days after a movie hit the theaters, THAT would be great news.

If you could get HD media 30 or 45 days after a movie hit the theaters, THAT would be great news.

Yeah, I can just imagine the uproar exhibitors would have if the studios tried that. That's...not a good idea for the overall profitability of movies. The home video window can't get too small...that hardly benefits the bigger picture (yeah, it benefits hi-def, but I think studios care more about the bottom line).