Originally Posted by aka_dnv
Hi Dave, no offense to you, I'm sure you're being straight about what your sources are telling you. But with all the speculative info flying around these days I would respectfully prefer to get corroborative information. Your sources may have dated info, you may have heard of problems that may have occurred in the past and may now be resolved.
The first I was made aware of this was in early July. I was able to confirm this information early last week after the Paramount news broke.
As I stated above, I am awaiting pricing from independent replicators to help resolve the issue.
You will be waiting a while for this, since they can't get yields above 10% on their lines thus far. Sony is trying to help them, but replicating BD50's is not a simple process.
Dave, not to get off topic, but since you brought up Paramount's decision, I do have a few questions for you.
Why do you think Paramount decided to pull Blu Ray production of a movie, Blades of Glory, which was already under way?
I normally receive Paramount titles 3 weeks before their release date. Blades of Glory was the first title that this hasn't happened on in the 4 years I have been reviewing Paramount titles. This deal wasn't done overnight.
Do you think it makes business sense to pull support for previous Blu Ray movies that have already been mastered, with packaging, and replication contracts in place?
Why not take the extra profit?
Because there is no profit from these releases. They all lose money. I know that is hard for people to understand, but it is a fact right now. In order for a disc to show a profit, it needs to sell over 100,000 copies just to make up for most of the producing costs (encoding, royalties, etc). That is why they won't print anymore discs. Also, if they are BD50's, then I doubt Sony would subsidize them so they would lose even more money!
For me, being the skeptical type, it appears that immediately dropping everything to do with Blu Ray is evidence that there was some sort of agreement made.
And I'm not even going to mention the other circumstantial evidence pointing to a deal.
You can bet there was an agreement made, but that doesn't mean that $150 million changed hands. They made a business decision, plain and simple. It's no different than a company handing out paychecks on a Friday afternoon and then deciding to hand out pink slips to everyone on Monday because they are shipping all of their manufacturing overseas in order to make more profit or to cuts costs because of competition. It is called business! The studios want to make money, regardless of the format. If HD DVD (or BD for that matter) starts selling 100,000 copies of every movie released because adoption rates climb as well as an installed base, the accountants and stockholders are going to demand that the studio adopt the format that is selling and they can make money on...they can't lose money forever.
Thanks for your input Dave.