Originally Posted by Dahlsim
Apparently it's not only a cost issue but also a capacity issue as in the capacity to produce DVD run volumes of disk in combo format. There apparently is not enough capacity currently to produce that many combos even if they were subsidized.
Yes, I understand this fact, but with Warner leaving the ship. It should open up 30% - 35% more capacity to print these combo disc. They only need to support 1 or 2 titles (meaning combos only with out a SD release) to put some faith back into HD DVD. This will reverse the domino effect, as it solves support on retail shelves and rentals. I doubt any business is willing to give up selling any Universal, Paramount, and Dreamworks movies. They probably only need to work with 1 studio on this idea.
If this works, you can bet that there will be more demand to do this and more facility upgrades to meet demand. The general public can still buy their HD DVD hardware in confidence as they know they can get all their HD DVD combo movies anywhere.
The issue for studio is really centered on cost. Why do they want to add HD DVD if it won't be free for them. They need to spend money to author 1080p content and then they need to spend money to print out the HD side of the combo disc.
That is why I hope Toshiba has decided to consolidate the licensing of DVD technology with HD DVD technology. There should not be 2 seperate technology, and should be considered 1 tech. The benefit of winning this war is more profitable than having 2 seperate tech license. They either lose with HD DVD or phase out DVD. So it should be 1 license. If they solve that, then it comes down to cost to produce a disc. It probably cost $2 more to make a combo than a normal SD. Put a mark up to retailers and you realistically have a combo that should be $5 more than a normal SD DVD. If you print them out in the millions, you can probably cut that number in half $1 and $2.50 respectively. This is were Toshiba should spend their money to subsidize disc cost. If they can sell 5 million of these disc to retailers and online rental services, it would cost Toshiba $2.5 million dollars in subsidies. For 2 titles, it would cost them $5 million dollars. Much cheaper than the price to get exclusivity from Warner or Fox.
We all know that consumers are not buying DVD as much anymore and studios are scared due to that. Warner says it is because of the format war. So the bonus HD DVD content of Combos should bring consumer confidence back by showing them that they can buy an SD movie, but get the HD side completely FREE! So even if BR is winning, buying a Combo is no big deal, because it is the only way to get Universal, Paramount, and Dreamworks movies and the price is the same as a SD release. In combination of a high quality low price upconverter that has a bonus HD DVD playing feature, it makes HD DVD just a great buy.
Will they do this? Of course not, because they want to FAIL!!!