Paramount and Dreamworks to offer exclusivity to HD DVD - AVS Forum
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post #1 of 1069 Old 08-20-2007, 06:10 AM - Thread Starter
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Oddly enough, it comes from a site who's reporter seems to be pro-blu from the way he describes HD DVD as a "dying format".

Quote:


"Based on conversations with multiple sources, we believe that Paramount is set to make the vast majority of its catalog available exclusively in the HD-DVD format (unclear whether that includes titles from its sister studio DreamWorks).

While Paramount (owned by Viacom) has some on-going commitments to release new release titles in Blu-ray, it is unclear how long that commitment lasts and how comprehensive the agreement is.

Up until now, Paramount and DreamWorks (live action) were releasing in both Blu-ray and HD-DVD formats. The reason for shifting catalog exclusivity to HD-DVD would appear to be substantial upfront dollars. We expect these dollars could have a meaningfully positive impact on Viacom's film profitability in 2H '07 and full-year 2008.

Separately, it appears that DreamWorks Animation is set to announced that 3-5 key titles (some catalog, some new releases, but details are still fuzzy) over the next several years will be made available exclusively in HD-DVD.

While we are somewhat surprised to see DWA favor a format given its smaller number of releases in a year similar to Paramount, we suspect the driving force of the decision was upfront payments to increase their support of HD-DVD. Given DWA's size, the financial impact on EPS in 2008-2010 could be a positive catalyst for the stock (we are still assuming that Shrek The Third is coming out in both formats in November 2007).

Prior to these revelations, we believe HD-DVD was essentially "dying a slow death," as Universal was the only studio exclusive to HD-DVD (and its box office was not strong enough this year to make a difference), far outweighed by the Blu-ray only studios (Sony, Fox, Disney, MGM, and Lionsgate.) Even though Sony's PS3 has been disappointing from a sales standpoint, Blu-ray DVD sales had begun to notably accelerate based on the content being made available. However, the Paramount/DWA moves alter the landscape meaningfully, as Paramount (Including DW/DWA titles) is the leading theatrical distributor year-to-date (enabling its catalog DVDs to "ride the coattails" of the success of successful theatrical films being released on DVD for the first time.)"

http://www.deadlinehollywooddaily.co...vd-format-war/
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Originally Posted by Yahoo View Post

LOS ANGELES - Paramount Pictures and DreamWorks Animation SKG announced Monday that they will offer next-generation DVDs in the HD DVD format rather than Blu-ray, a move that further complicates the race between the competing technologies.

The move by the two studios will include the upcoming blockbuster "Shrek the Third" and all movies distributed by Paramount Pictures, DreamWorks Pictures, Paramount Vantage, Nickelodeon Movies and MTV Films, as well as movies from DreamWorks Animation, which are distributed exclusively by Paramount Home Entertainment.

"Part of our vision is to aggressively extend our movies beyond the theater, and deliver the quality and features that appeal to our audience," said Brad Grey, chairman and chief executive of Paramount Pictures. "I believe HD DVD is not only the affordable high quality choice for consumers, but also the smart choice for Paramount."

The competition between Blu-ray and HD DVD has kept confused consumers from rushing to buy new DVD players until they can determine which format will dominate the market.

Studios and retailers have been choosing sides.

"Spider-Man 3" will only be available in the Blu-ray DVD format when it is released by Sony Pictures.

Likewise, people with Blu-ray players won't be able to enjoy the action-thriller "The Bourne Ultimatum," which Universal Pictures will release only in HD DVD.

(Article added by mod prior to merging threads)

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post #2 of 1069 Old 08-20-2007, 06:17 AM
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Wasn't Para (and Warner) HD DVD exclusive when this all "started"? Why would they decide to go back now if they decided to go neutral with no sales evidence at all? /shrug


2008-2010..... ummm, ok
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post #3 of 1069 Old 08-20-2007, 06:29 AM
 
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That would put HDDVD back at 50/50 in software sales.
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post #4 of 1069 Old 08-20-2007, 06:33 AM
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Wow. This is a significant development if true. Of note were the following paragraphs, which were omitted by the OP:

Quote:


Sources tell me that Paramount, which has been publishing on both Blu-ray and HD DVD, will receive $50 million to continue publishing in HD. "The deal is that anything they release on Blu-ray, they'll have to release in HD," a source told me. In addition, the studio will give the HD format exclusivity for some older titles in its catalogue.

But the $100 million from HD-DVD for DreamWorks Animation is a huge $$$ infusion for that still struggling public company. Sources tell me the money is for "promotional consideration" on future titles beginning with Shrek The Third. "Exactly what 'promotional consideration' means is that if there's an ad running for the Shrek The Third DVD, it'll mention that the pic is available on HD as well Blu-ray," an insider told me. The deal also applies to 3 or 4 future DWA titles. The HD/DreamWorks Animation deal is especially interesting because earlier this year, Jeff Katzenberg told a Bank of America conference that he expected "neither" high-def DVD format to win the war "because they're not going to become the next platform."

Essentially, Paramount and DreamWorks Animation risk nothing by doing this. HD DVD has a different demographic than Blu-ray Disc currently, and any catalog titles released by Paramount exclusively for HD DVD would probably not amount to many sales on BD for the time being. The DreamWorks Animation move is most assuredly designed to counter Disney's exclusivity.

For me personally, I will have to wait to find out which Paramount titles will be exclusive to HD DVD for me to decide its impact. Why do I see Saturday Night Fever being among them? As for DreamWorks Animation, they've nothing that interests me.
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post #5 of 1069 Old 08-20-2007, 06:34 AM
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Quote:


That would put HDDVD back at 50/50 in software sales.

I think you are grossly over-estimating the impact of this. Are you seriously trying to tell me that Paramount catalog titles and DreamWorks Animation are going to make up for the hole HD DVD has dug for itself in the 4Q?
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post #6 of 1069 Old 08-20-2007, 06:38 AM
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I wonder what kind of a list it would be.... paramount has some really big hitters that could matter alot to this war.
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post #7 of 1069 Old 08-20-2007, 06:39 AM
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Is toshiba paying 100 million or the collective hd dvd group? That's a lot of money.
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post #8 of 1069 Old 08-20-2007, 06:45 AM
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I don't know if this particular deal is true or not, but I think this type of deal is inevitable going forward.

This points out how those of us trying to analyze the financial incentive for currently exclusive studios going neutral don't really have a clue what incentives and commitments may be in place or coming. This is business and the stakes are enormous so I have no doubt studios are being courted financially.
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post #9 of 1069 Old 08-20-2007, 06:45 AM
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I hope this is true. Great news for true high-def movie fans if confirmed.

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post #10 of 1069 Old 08-20-2007, 06:46 AM
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Wow, surprising to say the least. This would be a big deal.

Hmm, the entire existing Star Trek franchise HDDVD only...
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post #11 of 1069 Old 08-20-2007, 06:49 AM
 
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Quote:
Originally Posted by LonnyE View Post

Wow, surprising to say the least. This would be a big deal.

Hmm, the entire existing Star Trek franchise HDDVD only...

NG on Star Trek The Next Gen - the masters are not on film so we will probably never see it in HD.
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post #12 of 1069 Old 08-20-2007, 06:51 AM
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Quote:


I wonder what kind of a list it would be.... paramount has some really big hitters that could matter alot to this war.

Obviously, the specific titles involved are Paramount to this discussion. However, these studios are holding all the cards, and I really don't see them holding back titles that would have a board interest across both formats.

I think the rationale for the studios involved is probably something along these lines: We'll give you exclusive titles that are more aimed toward your format's demographic, and, at such a time as BD achieves a similar demographic, we will release on that format as well. For the studios its a win-win.
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post #13 of 1069 Old 08-20-2007, 06:53 AM
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Quote:
Originally Posted by couchpotato1072 View Post

Is toshiba paying 100 million or the collective hd dvd group? That's a lot of money.

MS?

It certainly would have to be a big payoff for them to release exclusively on the lesser of the two HDM formats, giving up 2/3+ sales is a hard pill to swallow otherwise.

I really hope this isn't true, at this point I just one of the two formats to die ASAP. If this war continues through 2008, I see little chance of either HDM format EVER making it big. Why some can't see that this war continuing on indefinitely is a very bad thing, is beyond me.
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post #14 of 1069 Old 08-20-2007, 07:08 AM
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"The deal is that anything they release on Blu-ray, they'll have to release in HD,"

Sounds like this is in the first place a deal where Paramount promises not to go BD-exclusive (with some older catalogue exclusivity thrown in).

Could well be that Paramount approached Tosh with the threat of going BD exclusive and this is the outcome of the ensuing negotiations. OK, we pay you a ton of money, but you have to give me something beyond the status quo.
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post #15 of 1069 Old 08-20-2007, 07:13 AM
 
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This is a pure speculation based article. How in the world would he get access to anything that related to this "deal" if it existed. there are ALWAYS nondisclosure agreements involved in deals.

Pure FUD. But it did it's job. People are now reading the blog. Just what the author wanted - exposure.
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post #16 of 1069 Old 08-20-2007, 07:20 AM
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As Bela Lugosi would say... "pull dze strring!"

LOL

We should watch this closely.
And I hope the HD DVD marketing people do not blow this potentially huge opportunity to do some good.
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post #17 of 1069 Old 08-20-2007, 07:26 AM
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Quote:
Originally Posted by Lee Stewart View Post

This is a pure speculation based article. How in the world would he get access to anything that related to this "deal" if it existed. there are ALWAYS nondisclosure agreements involved in deals.

Pure FUD. But it did it's job. People are now reading the blog. Just what the author wanted - exposure.

While I don't often agree with Lee on this one he is right on the money. Deals involving payoffs are NEVER disclosed. Universal might be subsidized by MS and Toshiba, but you'll never know specifics and you'll never know if they are actually being paid.

Same thing with the BDA...

It's FUD designed to generate internet buzz... which it obviously has done...
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post #18 of 1069 Old 08-20-2007, 07:31 AM
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This has to be true. We all know that catalog titles are the big sellers in HDM, right?
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post #19 of 1069 Old 08-20-2007, 07:32 AM - Thread Starter
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For what it's worth, the author is the one who made reference to figures and cited it from a source. Interestingly, the actual figures were never mentioned in what the author posted as a memo from the source itself.

It's also worth noting that the author is apparently a BD fan by the choice of words he uses to describe HD DVD... Actually, a little background check states that "he" is actually a she. Anywho, you leave the article with a sense that the author wasn't too pleased with what she was reporting.

Over analyzing? Perhaps.

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post #20 of 1069 Old 08-20-2007, 07:35 AM
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I guess this is going to look real great with the investigation from the European Union.
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Quote:
Originally Posted by LiquidX View Post

For what it's worth, the author is the one who made reference to figures and cited it from a source. Interestingly, the actual figures were never mentioned in what the author posted as a memo from the source itself.


Deep Throat?

The One Armed Man?

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post #22 of 1069 Old 08-20-2007, 07:40 AM
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one of those "we'll believe it when we see it" type deals. i really dont see any reason to not release catalog titles on BD. if they wanted to save cost they could simply encode for hd-dvd and port to BD.

is it even legal to pay someone off for exclusivity if this ends up being true and public? i know manyh speculate BDA did the same thing with their exclusive studios, but if they did it was never leaked out.


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post #23 of 1069 Old 08-20-2007, 07:40 AM - Thread Starter
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Quote:
Originally Posted by Lee Stewart View Post

Deep Throat?

The One Armed Man?


I don't know Lee, you seem to know it all so tell me.

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post #24 of 1069 Old 08-20-2007, 07:40 AM
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Quote:
Originally Posted by Nescio View Post

"The deal is that anything they release on Blu-ray, they'll have to release in HD,"

Sounds like this is in the first place a deal where Paramount promises not to go BD-exclusive (with some older catalogue exclusivity thrown in).

Could well be that Paramount approached Tosh with the threat of going BD exclusive and this is the outcome of the ensuing negotiations. OK, we pay you a ton of money, but you have to give me something beyond the status quo.

Wow, someone still was able to thro some blu spin on it ,incredible!

Speculate much?

I'd love to get my hands on a Blu Monster's Ball.-LilStinky

Refering to a possible release of said movie on BD LOL
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post #25 of 1069 Old 08-20-2007, 07:41 AM
 
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Quote:
Originally Posted by LiquidX View Post

I don't know Lee, you seem to know it all so tell me.

It was the Easter Bunny! Take it to the bank!
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post #26 of 1069 Old 08-20-2007, 07:42 AM
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Quote:
Originally Posted by Lee Stewart View Post

This is a pure speculation based article.

It's not Lee.
What's true is that Paramount has been, and is now being actively courted with soft red suitcases filled full of monopoly money.

What's speculation is whether or not there is a done deal of some sort and the exact *figures* involved, as to the former, I fear the worst.
I hinted as much as I could about this development in a post early yesterday morning, hours before this reporter posted his article...

http://www.avsforum.com/avs-vb/showp...&postcount=124

^
Note the edit..c.b. stands for crystal ball.
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post #27 of 1069 Old 08-20-2007, 07:43 AM
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Quote:
Originally Posted by dpags View Post

This has to be true. We all know that catalog titles are the big sellers in HDM, right?

Naw there not. Who on earth would want Star Trek, Spiderman 1,Aliens.Close Encounters,Jurassic Park

I'd love to get my hands on a Blu Monster's Ball.-LilStinky

Refering to a possible release of said movie on BD LOL
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post #28 of 1069 Old 08-20-2007, 07:47 AM
 
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Quote:
Originally Posted by Penton-Man View Post

It's not Lee.
What's true is that Paramount has been, and is now being actively courted with soft red suitcases filled full of monopoly money.

What's speculation is whether or not there is a done deal of some sort and the exact *figures* involved, as to the former, I fear the worst.
I hinted as much as I could about this development in a post early yesterday morning, hours before this reporter posted his article...

http://www.avsforum.com/avs-vb/showp...&postcount=124

^
Note the edit..c.b. stands for crystal ball.

Let me get this straight - you are saying that Toshiba or the HD DVD PG is going to offer Paramount money to drop BD and become HD DVD exclusive . . .is that right?

And you know this how?
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post #29 of 1069 Old 08-20-2007, 07:48 AM
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Quote:
Originally Posted by LiquidX View Post

Oddly enough, it comes from a site who's reporter seems to be pro-blu from the way he describes HD DVD as a "dying format".



http://www.deadlinehollywooddaily.co...vd-format-war/

Did not see this coming, this is pretty damn huge. Star Trek and other goodies are hits with the nerd crowd. Now if this includes Dreamworks stuff later on, even more huge. No reason to think Dreamworks stuff would not come. Can you imagine Gladiator with extras on HDDVD, and no Gladiator on BD?

BD only fans are gonna have a meltdown over this.

If true, this just made the format war even more interesting.

Welcome to a prolonged war!

I'd love to get my hands on a Blu Monster's Ball.-LilStinky

Refering to a possible release of said movie on BD LOL
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post #30 of 1069 Old 08-20-2007, 07:51 AM - Thread Starter
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Quote:
Originally Posted by Lee Stewart View Post

Let me get this straight - you are saying that Toshiba or the HD DVD PG is going to offer Paramount money to drop BD and become HD DVD exclusive . . .is that right?

Lee.. This has nothing to do with Paramount completely dropping BD. It's a deal which guarantees that Paramount releases any BD titles also on HD DVD, and that they open the majority of their catalog exclusively to HD DVD.

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