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HD DVD Pays $150 Million to Paramount and DreamWorks to switch formats

post #1 of 53
Thread Starter 
But money talks: Paramount and DreamWorks Animation together will receive about $150 million in financial incentives for their commitment to HD DVD, according to two Viacom executives with knowledge of the deal but who asked not to be identified.

http://www.nytimes.com/2007/08/21/te...+4r1NyAsum87vQ
post #2 of 53
Quote:
Originally Posted by Elderan View Post

But money talks: Paramount and DreamWorks Animation together will receive about $150 million in financial incentives for their commitment to HD DVD, according to two Viacom executives with knowledge of the deal but who asked not to be identified.

http://www.nytimes.com/2007/08/21/te...+4r1NyAsum87vQ

lol the times always checks it sources doesn't it

If true, who cares? As if Sony doesn't buy people off.

Jeff-
post #3 of 53
Quote:
Originally Posted by JDF1384 View Post

lol the times always checks it sources doesn't it

Well, it does say two Viacom sources.
post #4 of 53
Quote:
Originally Posted by bferr1 View Post

Well, it does say two Viacom sources.

Sorry, the Times is a horrible paper, I take what ever they write with a grain of salt.

Jeff-
post #5 of 53
Quote:
Originally Posted by bferr1 View Post

Well, it does say two Viacom sources.

It was probably Bill Hunt and Beatboy masquerading as Viacom
sources.
post #6 of 53
My first preference for this "war" would be that ALL studios were format neutral, and then let the consumer decide the outcome. If this were the case, HD DVD would quickly win, as their players are half the price, and the discs are cheaper to produce.

Unfortunately, we have to have the two sides buy off different studios for exclusive support, to the detriment of the consumer. I don't like these kind of business antics, (both sides have done it) and had always thought they violated U.S. Anti-trust regulations, but apparently not.

That being said, $150 million was a cheap price to have these studios go exclusive to HD DVD. I see the "Transformers" release alone paving the way for mass adoption of HD DVD, similar to what the Matrix did for SD DVD.
post #7 of 53
Here we go with the conspiracy theories and anonymous sources to confirm it.


$150 million is awful cheap to pull Paramount away from the "inevitable" victor blu-ray even if you believe in Microsoft black helicopters.
post #8 of 53
Common sense tells a sane person the story is true. Why would you abandon a format that is outselling HD DVD by 2-3 to 1 unless one got paid for it?
post #9 of 53
Quote:
Originally Posted by Elderan View Post

But money talks: Paramount and DreamWorks Animation together will receive about $150 million in financial incentives for their commitment to HD DVD, according to two Viacom executives with knowledge of the deal but who asked not to be identified.

http://www.nytimes.com/2007/08/21/te...+4r1NyAsum87vQ

Why is this a big deal? If it read "HD-DVD invests 150 million" would it be any different? This happens all the time in business. You think Sony doesn't do the same?
post #10 of 53
I am format neutral. However, has Sony paid anyone or cut any exclusive deals with anyone? I wish that all the studios including Sony would go format neutral so this so called war could actually be decided by the consumer. Let the consumer choose and see what happens. Now that would be a novel idea.
post #11 of 53
Key words from this story are that "HD DVD exclusivity will last only 18 months".
post #12 of 53
post #13 of 53
Quote:
Originally Posted by whopper View Post

... outselling HD DVD by 2-3 to 1...

If you believe that, I have some bridges in NY for sale. Florida swampland too.
post #14 of 53
Quote:
Originally Posted by whopper View Post

Key words from this story are that "HD DVD exclusivity will last only 18 months".

Boy you hear this more and more from the BD side... I guess that's about the only thing left to hang to, eh?

Well... hate to burst the bubble but time limits are a standard thing on contracts..... which can easily be renewed. So maybe 18 months.... maybe 36 months.... maybe....
post #15 of 53
Quote:
Originally Posted by whopper View Post

Common sense tells a sane person the story is true. Why would you abandon a format that is outselling HD DVD by 2-3 to 1 unless one got paid for it?

There are some reasons given by Paramount reps, read em?
post #16 of 53
Quote:
Originally Posted by 5thDanMaster View Post

This is already posted here: http://www.avsforum.com/avs-vb/showthread.php?t=893900

Yes thank you and it was closed because there were 150 million other threads discussing it.

Oh and the OP omitted his statement which he posted on the BR forum:

"Pretty sad when you have to bribe someone to use your stuff."

Stop posting this junk --it's worthless.
post #17 of 53
Quote:
Originally Posted by delrmx01 View Post

Yes thank you and it was closed because there were 150 million other threads discussing it.

Oh and the OP omitted his statement which he posted on the BR forum:

"Pretty sad when you have to bribe someone to use your stuff."

Stop posting this junk --it's worthless.

I agree!

BD supporters are such hypocrites. This why I could never own a BD player as I would be supporting same BS that comes from the BD group. The BD business tactics are sickening to say the least. The general public is not stupid and because of this attitude BD sales will be on the fall and BD will only be a PS3 and a backup device (just like it's original design was meant for), just wait and see.

...Angelo
post #18 of 53
Quote:
Originally Posted by petmic10 View Post

It was probably Bill Hunt and Beatboy masquerading as Viacom
sources.

Blu-ray Bill? Surely not.
post #19 of 53
Quote:
Originally Posted by whopper View Post

As an HD DVD owner and Blu-Ray owner I know those reasons given by Paramount are pure ********!!

Really? Do you work for Paramount, do you know what really motivated them to make this decision?

Until paramount or HD-DVD group confirm this FUD I'll say it's FUD. The rumor of the $150mil deal spread almost immediately after Paramount made it's decision public, Details don't leak that fast. The rumor is the BDA spread this FUD. Camp BR is crapping themselves right now, If studios can be bought for $150mil then Sony can pocket a few studios as well and for all we know they did already. I love how camp BR is calling the move an act of desperation lol yeah ok. All over the net I'm reading the whine posts, That's it guys, even playing field right now, Sony needs to make a play now.

Jeff-
post #20 of 53
Quote:
Originally Posted by whopper View Post

As an HD DVD owner and Blu-Ray owner I know those reasons given by Paramount are pure ********!!

If your a supporter for both formats then isn't the current Studio Exclusives at an even playing ground for both formats? I think so. BUT your posted attitude sounds totaly BD.

STOP TROLLING as a dual supporter and stay in your BD cave.

...Angelo
post #21 of 53
Quote:
Originally Posted by whopper View Post

Common sense tells a sane person the story is true. Why would you abandon a format that is outselling HD DVD by 2-3 to 1 unless one got paid for it?

Because the future of HD optical hardware is more positive looking for HD DVD since they have stand alone players that are actually affordable and they are not relying on a video game system to promote the HD optical media format. 2:1 sales are true at the moment but lets not forget that 2:1 in a VERY small and somewhat stagnant market doesnt eman very much at all and Paramount knows this.

They prolly figured that it was time to let HD DVD have some time in the spotlight to see if they can pull in some new consumers. BD wasnt doing it, all they had was the PS3 install base which was solid...but it wasnt really growing and those attach rates were yukky.

Just my take on what they were thinking....
post #22 of 53
Wouldn't "switching sides", have to inherently mean that they were exclusively the "other" side first?? Factcheck: was Paramount exclusively b-ray before "switching" to be exclusively HD-DVD??

I think not. They previously supported "both" formats..and "chose" or decided to support HD-dvd exclusively.

Yes, it's the same deals Sony has been running around making with people (deals meant to try and "show" somekind of movement in the overall "war"....ie..the war is over and HD lost. Unfortunately for sony, and as is common with them, their marketing got a we bit ahead of where they were.

Anyway, it would appear this is all far from settled. Should be interesting
post #23 of 53
I do agree that it has thrown some a couple more logs on a fire that was dying out. I was actually shocked with all the headway BD has been seeming to make lately. I just have a PS3 right now, but told my wife the other day I wanted an HD-DVD player also. She asked why? I wanted to say, "I just want all the toys". Now I actually have an excuse, cause dammit I'm watching Transformers in HD. I was really hoping the "format war" was closer to over, but now I guess we'll all wait another 5 years or more before we can have one player again. Maybe this just ensures that a great upconverting DVD player is the way to go. That's at least what I see non-early adopters sticking too. Most can't tell the difference between an upconverted DVD and a high def disc anyway.
post #24 of 53
^ That's the way to do it snook.. as for me, I'm still waiting on BR prices to fall..then maybe I'll jump. For now, I'm glad to be an HD DVD supporter.
post #25 of 53
Sigh. Well I guess the BD trolls have received their "talking points" from the BDA. It was nice for a short while when they weren't over here.
post #26 of 53
Quote:
Originally Posted by petmic10 View Post

It was probably Bill Hunt and Beatboy masquerading as Viacom
sources.

HA! I love it!
post #27 of 53
Thread Starter 
Actually I am format neutral. I just want someone to WIN at this point because I want to get a few players and start my new HD collection be it HD DVD or Blu-Ray. I am a little upset because it looked like finally someone was about to win or getting very close. But by HD DVD doing this it brings things back into another unknown and will drag this out for un needed amount of time.
post #28 of 53
Quote:
Originally Posted by Elderan View Post

Actually I am format neutral. I just want someone to WIN at this point because I want to get a few players and start my new HD collection be it HD DVD or Blu-Ray. I am a little upset because it looked like finally someone was about to win or getting very close. But by HD DVD doing this it brings things back into another unknown and will drag this out for un needed amount of time.

Please!!! Ye of 26 posts!!!
I have heard this over and over again. Always the same crap. "All this does is muddy the waters."
Well, I got news for ya... HD-DVD was far from a dead format. What this does is level the playing field. A few weeks ago Toshiba just announced the future release of third generation HD-DVD players. Hardly sounds like a format going belly up.
I even heard someone say that this would further delay the release of Star Wars on HD because they said Lucas would only back one format. Now is that Blu Hype or what? So I ask, what is Mr. Lucas excuse for taking so long to release Star Wars on SD-DVD? He and FOX make a great pair. They can go hide all of their movies in vaults forever for fear of being copied.


Craig
post #29 of 53
http://www.pcworld.com/article/id,13...y/article.html

interview with Alan Bell indicates the deal is indefinate...
post #30 of 53
Quote:
Originally Posted by KingRat View Post

http://www.pcworld.com/article/id,13...y/article.html

interview with Alan Bell indicates the deal is indefinate...

And Microsoft denies paying paramount anything
Quote:


"Paramount and DreamWorks Animation declined to comment. Microsoft, the most prominent technology company supporting HD DVDs, said it could not rule out payment but said it wrote no checks. We provided no financial incentives to Paramount or DreamWorks whatsoever, said Amir Majidimehr, the head of Microsoft's consumer media technology group."

The blu bois are foaming at the mouth on this one.
If MS didn't buy Paramount at the rock bottom price of $150 million who did? A mystery for the Hardly Boys to be sure. A real 'who done it', that may never be solved, because it may have never happened.



From what Bell says blu Java was a major problem, they had to hire extra people to work with it and it was not reliable.
From another article the cost of producing Blu is much higher than HD. Plenty of reasons for a company that was reluctant to produce BD to go back to solely HD.

Quote:


The Blu-ray Disc Association (BDA) has long asserted that its Blu-ray (BD) format is superior to the rival HD DVD format, and BD's "revolutionary" buzz has understandably caught the fancy of certain technologists. But CEOs should be wary, because what the BDA does not sufficiently address is what lies behind those assertions. The numbers are stark: manufacturing BD discs will require an estimated US$1.7 million cost per manufacturing line. Per line!

Then, each major manufacturing facility would require the implementation of a minimum of two mastering systems, at a minimum cost of US$2 million per system. DVD, at the height of its success, resulted in an estimated 600 manufacturing lines globally. Even allowing for a decline in systems costs over time as the manufacturing base expanded, the tab for radically overhauling the media manufacturing industry would approach a billion dollars worldwide or more. Already-beleaguered CFOs will be challenged to raiseand riskthis significant amount of capital.

Compare this to the estimated cost of retooling for the HD DVD format compared to BD. HD DVD is able to utilize virtually the entire existing manufacturing infrastructure. The cost of upgrading an existing DVD line is about US$150,000less than a tenth the cost of a BD line. A DVD mastering system can be upgraded for US$145,000. Basically, HD DVD is a DVD-9a version of DVD we have enormous manufacturing experience with alreadywith a denser pit structure.

Once people realize the hidden costs of the Blu-ray format, they will also realize the extent to which it actually endangers their very industry.

Blu-ray is the Emperor's New Clothesit advances the agendas of a few select companies instead of the markets and that of the consumer. No onethe studios, the disc manufacturers, the consumer electronics manufacturerscan afford a format war today.

Rick Marquardt, former GM, Warner Advanced Media Operations,
From Ars Technica
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