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Forums - Sales Discussion - Warner paid 500$ to be BR exclusive !!!

If Onimusha tried to end the argument, then there's no reason to continue it.



 

 

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Damn it, Sony won.



@ Montana

OK, sorry. :(



The people who say that BD will nevr be as popular as DVD are blind. For one everything is going HD. With a single HD format now a reality, I would bet that the movie studios will not support DVD for longer than 2 maybe 3 years. With people freaking out over the whole digital conversion thats happening in 09, a lot of people have already purchased HD sets, and continue to do so daily. Its really up to the movie studios at this point what is more popular. Once the players get into the 99$ range is when its feasible to pull the plug on DVDs. Then anyone who wants a movie needs to get a BD player. They dont really have to wait that long, but I would think that once the players drop to 99 bucks the plug will for sure be pulled as you dont need to have a HDTV in order to use the BD player.



When DVD came out, people were eager to adopt a digital format that wouldn't decay over time and could be navigated without fast forwarding or rewinding. DVD was a break through in convenience.

HD Formats just offer a prettier picture if you have an HD-TV. You'll forgive the consumer if they're not as motivated to begin rebuilding the library they've spent the last ten years building.



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This according to NY Times, confirming Howard Stringers involvement in the Warner decision.

 

Warner Backs Blu-ray, Tilting DVD Battle

By BROOKS BARNES
The New York Times
Published: January 5, 2008

LOS ANGELES — The high-definition DVD war is all but over.

Hollywood’s squabble over which of two technologies will replace standard DVDs skewed in the direction of the Sony Corporation on Friday, with Warner Brothers casting the deciding vote in favor of the company’s Blu-ray discs over the rival format, HD DVD.

In some ways, the fight is a replay of the VHS versus Betamax battle of the 1980s. This time, however, the Sony product appears to have prevailed.

“The overwhelming industry opinion is that this decides the format battle in favor of Blu-ray,” said Richard Doherty, research director at the Envisioneering Group, a market research firm in Seaford, N.Y.

Behind the studio’s decision are industrywide fears about the sagging home entertainment market, which has bruised the movie industry in recent years as piracy, competition from video games and the Internet, and soaring costs have cut into profitability. Analysts predict that domestic DVD sales fell by nearly 3 percent in 2007, partly because of confusion in the marketplace over the various formats.

HD DVD, however, is not dead. Two major studios, Paramount Pictures and Universal Pictures, have deals in place to continue releasing their movies exclusively on HD DVD, as does DreamWorks Animation. Warner Brothers, part of Time Warner, will also continue to release its titles on both formats until the end of May.

But by supporting Blu-ray, Warner Brothers, the largest player in the $42 billion global home entertainment market, makes it next to impossible for HD DVD to recover the early momentum it achieved.

While the specifics of the Blu-ray and HD DVD skirmish might be of interest only to insiders, the consequences of deciding a winner are not. Consumers have been largely sitting on the sidelines, waiting to buy high-definition players until they see which will have the most titles available. Retailers have been complaining about having to devote space to three kinds of DVDs. And the movie business has delayed tapping a lucrative new market worth billions. High-definition discs sell for a 25 percent premium.

“Consolidating into one format is something that we felt was necessary for the health of the industry,” Barry M. Meyer, the chief executive of Warner Brothers, said in a telephone interview. “The window of opportunity for high-definition DVD could be missed if format confusion continues to linger.”

In addition to Sony, a consortium of other electronics makers back Blu-ray. For Sony, Warner’s decision is a chance to rewrite history: the company faltered in its introduction of Betamax in the consumer market in the 1980s. Many analysts say the HD DVD players now risk becoming the equivalent of Betamax machines, which died out in large part because it became harder for consumers to find Betamax movies as studios shifted allegiance to VHS.

With Warner on board, Blu-ray now has about 70 percent of the market locked up; Walt Disney, 20th Century Fox, MGM, Lionsgate and, of course, Sony are all on Blu-ray’s team. Warner Brothers has some of the bigger releases in 2008, including “Speed Racer,” the Batman sequel “The Dark Knight” and the sixth Harry Potter installment.

“This doesn’t necessarily kill the HD DVD format, but it definitely deals it a severe blow,” said Paul Erickson, an analyst at the NPD Group’s DisplaySearch. “When a consumer asks a store clerk which format to buy, that clerk is now going to have a hard time arguing for HD DVD.”

In a prepared statement, Toshiba said it was “quite surprised” and “particularly disappointed” by Warner’s decision. “We will assess the potential impact of this announcement with the other HD DVD partner companies,” the company said. Universal Pictures declined to comment.

Warner Brothers has been courted for months by both sides. Toshiba dispatched Yoshihide Fujii, the executive in charge of its HD DVD business, to the studio three times in recent months, according to Time Warner executives who were granted anonymity because the negotiations were confidential. Sony has aimed even higher: Howard Stringer, the conglomerate’s chief executive, has leaned on Jeffrey Bewkes, the new chief executive of Time Warner.

Money was an issue. Toshiba offered to pay Warner Brothers substantial incentives to come down on its side — just as it gave Paramount and DreamWorks Animation a combined $150 million in financial incentives for their business, according to two executives with knowledge of the talks who asked not to be identified.

Kevin Tsujihara, president of the Warner Brothers Home Entertainment Group, declined to comment on whether any payments were offered for support of Blu-ray. “This market is absolutely critical to our future growth,” he said in a telephone interview. “You couldn’t put a number on that.”

For his part, Mr. Meyer said, “We’re not in this for a short-term financial hit.”

Which high-definition technology is better has been the subject of intense debate in Hollywood and electronics circles for years. HD DVD players have been much cheaper than Blu-ray machines, but Blu-ray discs have more storage space and more advanced protections against piracy. Both versions deliver sharp resolution.

Consumers were inundated with marketing from both sides during the recent holiday season. Wal-Mart, as part of a temporary promotion, offered Toshiba players for under $100. Sony and its retailing partners, including Best Buy, responded by dropping prices on Blu-ray players, although not to the same level. Blu-ray players can now be purchased for under $300.

Still, Blu-ray was emerging as a front-runner as early as August. Blu-ray titles have sharply outsold HD DVD offerings — by as much 2 to 1, according to some analysts — and some retailers like Target started stocking only Blu-ray players. Blockbuster said last summer that it would carry Blu-ray exclusively.

“We’ve been monitoring the situation with consumers for a while now and they have clearly made their choice,” Mr. Meyer said. “We followed.”


Onimusha12 said:
When DVD came out, people were eager to adopt a digital format that wouldn't decay over time and could be navigated without fast forwarding or rewinding. DVD was a break through in convenience.

HD Formats just offer a prettier picture if you have an HD-TV. You'll forgive the consumer if they're not as motivated to begin rebuilding the library they've spent the last ten years building.

Actually the thing that sold DVD over VHS was the fact you could put a lot more on a DVD (extras). Guess what, even in HD you can put more on Blu-ray than on DVD. Again you don't have to rebuild your library when Blu-Ray players can play DVDs.



Smidlee said:
Onimusha12 said:
When DVD came out, people were eager to adopt a digital format that wouldn't decay over time and could be navigated without fast forwarding or rewinding. DVD was a break through in convenience.

HD Formats just offer a prettier picture if you have an HD-TV. You'll forgive the consumer if they're not as motivated to begin rebuilding the library they've spent the last ten years building.

Actually the thing that sold DVD over VHS was the fact you could put a lot more on a DVD (extras). Guess what, even in HD you can put more on Blu-ray than on DVD. Again you don't have to rebuild your library when Blu-Ray players can play DVDs.


And how do you figure that? Considering extra features and bonus content  didn't even have a nitche until well after DVD was established I think we can handily call your reasoning the well wishing of someone who wants to believe HD formats will recieve the same warm welcome.

A format that is easier to navigate and won't decay is far more appealing to a consumer anyday than tacky extras which were what DVDs had, if that their first couple of years.



Onimusha12 said:
Smidlee said:
Onimusha12 said:
When DVD came out, people were eager to adopt a digital format that wouldn't decay over time and could be navigated without fast forwarding or rewinding. DVD was a break through in convenience.

HD Formats just offer a prettier picture if you have an HD-TV. You'll forgive the consumer if they're not as motivated to begin rebuilding the library they've spent the last ten years building.

Actually the thing that sold DVD over VHS was the fact you could put a lot more on a DVD (extras). Guess what, even in HD you can put more on Blu-ray than on DVD. Again you don't have to rebuild your library when Blu-Ray players can play DVDs.


And how do you figure that? Considering extra features and bonus content  didn't even have a nitche until well after DVD was established I think we can handily call your reasoning the well wishing of someone who wants to believe HD formats will recieve the same warm welcome.

Well I'm only going on by what the experts said on world news of why DVD was one of the fastest selling product ever. The very first dvd movie I remember renting had extras.

 



Well, I for one am glad it's over.  I've posted before that I wished one side would just prevail...EITHER side, even though I personally had hoped a little for BD to win due to the space advantage and it's durability/scratch protection.  However, even with the market leaning blu, there was no question that at least until the 1.1 spec came out, HD-DVD was the more mature product.  Regardless, it's all but over now.

I wonder when Universal's deal is up?  Whenever it is, expect them to go BD exclusive; it simply will make business sense for them now, no question about it.  Paramount is  kind of left without a chair as the music stops; wonder if they have an escape clause they could use?

 For those saying that Warner was paid....well first, if it was, how is that different from how the HD-DVD camp paid Paramount?  And in this case, we're actually hearing that Warner WASN'T paid.  In any case, does it make a difference now?  No!  By the way, if Warner was paid we'll see for sure when they release their quarterly report as that kind of a deal would legally have to be documented.

To those saying that digital distribution will take over instead of BD or any HD format...have you checked reality lately?  First, well publicized problems with performance and bandwidth (see XBLA as one reference) have proved that we're not quite there yet.  For real at least DVD quality movies to be downloaded do you really think people will wait for a movie to download to then be able to watch it on their TV?  That's a good bit of time wasted when you could pop in a disk.  For HD content?  You have to be kidding me.  A 25-50GB download?  No thanks man, not at current speeds!

The music market has shown that while people DO like to download music, there's still the majority in sales going to the physical media.  People like having a "hard copy" in hand.  Print media has been there for longer than music in download form...have we seen libraries and bookstores going away?  Again, people like having something IN HAND, especially when they pay money for it.  This method of distribution hasn't even worked out great for software and gaming.  So how do you expect it to suddenly take off over the next few years?  Ain't gonna happen.

Also, there's a BIG misperception among the tech savvy and gaming crowd about people's access to broadband.  A recent GAO (Government Accounting Office) study showed that in 2006 only 30 million households had access to broadband (DSL on up).  That's 28%.  Link: http://209.85.173.104/search?q=cache:6aL0bEnpAfcJ:www.gao.gov/new.items/d06426.pdf+percentage+of+high+speed+internet+access+in+United+States&hl=en&ct=clnk&cd=2&gl=us&client=safari#46

A similar study in 2000 showed that only approx 7.8 million households and businesses had this access.  If you extrapolate on that basis (about 22 million in growth over 6 years) you'd hit about 50% of households in 2012.  Now, while that's a very rough extrapolation to say the least as there could be many other factors, that should at least tell us something.  And by the way, satellite was included in the study as "broadband" ever tried downloading something big over satellite?  Yet, that's the way the same study says most people especially in rural areas will likely get such access.  Point is, broadband hasn't reached "mass adoption" yet and isn't likely to in the next 5 years or so.

HD video provides a big difference over DVD.  More content on fewer disks and much better quality.  People saying that upscaling is just as good or close make me laugh. Upscaling doesn't add detail, folks!  It may make things look less grainy and sharper on your big HDTV, but the detail still doesn't magically appear.  I've seen a lot of people claim at first that they don't see a big difference but after a few months that seems to go away and the same people are complaining about grain or the lack of detail on regular channels, DVD's, etc.

Given people's reluctance to NOT have something in their hand, I think that full digital distribution is even further off than the access to make it possible.  People will have to get used to and get over the lack of physical product, which will take longer even when they have the technology available to them.  Only the tech crowd will gravitate to that technology quickly.

 Bottom line, it's good for everyone that this format war be over.  Disappointing for some, sure, but the end result is good and that's what you get when you're an early adopter.  So many people I know have been hanging back because of the uncertainty in whether to get blu-ray or hd-dvd.  Now they can go ahead and buy it.  HD will slowly gain momentum over 2008 and I think 2009 will see a lot of growth as people panic over the digital TV switchover.  That ignorance will drive sales and don't think that manufacturers and studios will mind. :)

In any case, there's no reason to dance for joy on people's heads OR to be bitter and claim some kind of dirty dealing. This just IS.  I also don't think this is a cause for PS3 fans to throw a party.  Hey, I have one too, but if BD had died, it wouldn't have affected the PS3 much.  Maybe a few less sales from people also looking to get a movie player, but games still would have been on BD, just like UMD and the PSP.  Now with BD winning, there may be a slight positive effect on sales, but it won't be huge.  After all, first and foremost, it's a game system.  Some of the name recognition of Blu-Ray may paint it in a more positive light but again, no earth-shattering sales movement.  The PS3 played it's part in Sony's strategy and DID probably help BD a lot.  I know a lot of people who bought at least a few movies to "try out" on their PS3.  So, a little bit of help to Sony.  Big deal.  I think the same reasoning will have a slight, but even slighter negative effect on the 360.  After all, the 360 doesn't have the HD-DVD drive built in, it's an add on.  So really, only sales of that peripheral are likely to be affected.  Again, no cause for a party.

In the end, we have our new format for the next 8-10 years.  Computers will be using it, costs will certainly plunge as the adoption of the format rises and any cost disadvantages it had will quickly be eroded.  I still don't think HD media will reach mass adoption till players hit about the $100 range and moves are $20 or less, but we're getting there.  Prices on average are already much lower than they were a year ago and that will just continue as per normal.  I remember bitching about the cost of DVD's and DVD players when they came out.  Actually, I don't think the cost of DVD players plummeted from the $1000 and up range down to $3-400 as fast as BD has....anyone?  In any case, it will get cheaper quickly and in a few years we'll all be laughing about this.  That is....until the NEXT format war! :)