Microsoft Pays Off Dreamworks & Paramount to Drop BluRay
Well… the high-definition format war just got more confusing for consumers, and you can thank the hubris of the folks at Microsoft for it. Their HD-DVD format (because I’m sorry, can anyone really say it still belongs to Toshiba at this point?) badly needed a shot in the arm going into the holiday season, and just got it thanks to suitcases full of cash from the Microsoft camp. You ready for this? Here it is:
Microsoft has paid DreamWorks and Paramount so much money that they’ve decided to join Universal in the HD-DVD exclusive camp. No kidding.
None of the participants in this deal are willing to openly disclose just how MUCH money was exchanged, but the L.A. Weekly is reporting (based in part on a confidential report from media analysis firm Pali Research) that it was in the neighborhood of $50 million in “promotional considerations” for Paramount and $100 million for DreamWorks. I’m sure they’re also getting lots of free or discounted VC-1 compression and HDi authoring services, along with prime placement on Xbox Live too. Is anyone else just disgusted by Microsoft’s naked, shameless financial influence in this thing? That Hollywood is a greedy place should be obvious to all by now, if it wasn’t already. The HD-DVD format can’t win any other way than for Microsoft to PAY studios off to stay exclusive. And then they have the balls to claim the Blu-ray Disc camp is involved in antitrust violations. Wow.
I’ll tell you, this doesn’t change our opinion of the eventual outcome of the format war too much. HD-DVD is never going to win this thing. The best it can hope for at this rate, even with the paid involvment of Paramount and DreamWorks, is to stay in the game. But let’s face it… if money has to be involved for HD-DVD to stay in the game, that says a lot right there. And while Paramount and DreamWorks will no doubt earn lots of scorn from the rest of the industry, and they’ll each make a couple extra movies with Microsoft’s money while their stockholders giggle with glee, eventually business realities will dictate that they’ll change their tune again. Unless Microsoft pays them more money still. One wonders if Universal just got another paycheck too.
By the way, if anyone doubts that Microsoft’s real reason for involving itself in all this is to slow the adoption of next-generation discs by confusing consumers with a continuing format war so their own Xbox Live service can continue to grow and dominate the movie and TV downloading market, you’d better think twice. Because you can bet that while they’ll continue to play at supporting HD-DVD, lots of those brand, spanking new high-def transfers will end up on Xbox Live too and for a lot cheaper than the discs.
Anyway, here’s the official press release from Paramount and DreamWorks. And I’d like to call your attention to the final sentence in this press release, because I think it tells you EVERYTHING you need to know about this announcement:
Paramount and DreamWorks Animation Each Declare Exclusive Support for HD DVD
Movies Distributed by Paramount Home Entertainment Including Paramount Pictures, DreamWorks Animation SKG, DreamWorks Pictures, Paramount Vantage, Nickelodeon Movies and MTV Films to be Released Exclusively in HD DVD Exclusive Program To Begin with Release of “Blades of Glory,” Followed by “Transformers” and “Shrek the Third,” Films Representing More Than $1.5 Billion in Combined Worldwide Box Office
LOS ANGELES, Aug. 20 /PRNewswire-FirstCall/ — Paramount Pictures, a unit of Viacom Inc. (NYSE: VIA and VIA.B) and DreamWorks Animation SKG (NYSE: DWA), each announced today that they will exclusively support the next-generation HD DVD format on a worldwide basis. The exclusive HD DVD commitment will include 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.
The companies each said that the decision to distribute exclusively in the HD DVD format resulted from an extensive evaluation of current market offerings, which confirmed the clear benefits of HD DVD, particularly its market-ready technology and lower manufacturing costs Paramount Home Entertainment will launch its exclusive HD DVD program with the release of the blockbuster comedy hit “Blades of Glory” on August 28th and follow with two of the biggest grossing movies of the year “Transformers” and “Shrek the Third”. These three titles alone represent more than $1.5 billion in box office ticket sales worldwide.
“The combination of Paramount and DreamWorks Animation brings a critical mass of current box office hits to consumers with a line-up of live action and animated films that are perfect for HD DVD,” stated Brad Grey, Chairman and CEO of Paramount Pictures, which is currently the leading studio in domestic box office. “Part of our vision is to aggressively extend our movies beyond the theater, and deliver the quality and features that appeal to our audience. I believe HD DVD is not only the affordable high quality choice for consumers, but also the smart choice for Paramount.”
“We decided to release “Shrek the Third” and other DreamWorks Animation titles exclusively on HD DVD because we believe it is the best format to bring high quality home entertainment to a key segment of our audience — families,” stated DreamWorks Animation CEO, Jeffrey Katzenberg. “We believe the combination of this year’s low-priced HD DVD players and the commitment to release a significant number of hit titles in the fall makes HD DVD the best way to view movies at home.”
With the rapid increase of HD TV screens in households, and audiences wanting to enjoy the total entertainment experience, HD DVD has emerged as the most affordable way for consumers to watch their movies in high definition. In addition to pristine quality, HD DVD also offers consumers the chance to personalize the movie-watching experience, to interact with their movies and even to connect with a community of other fans.
Paramount Home Entertainment will issue new releases day and date as well as catalog titles exclusively on HD DVD. Today’s announcement does not include films directed by Steven Spielberg as his films are not exclusive to either format.
How do you like THEM apples? Not exclusive to either format? Spielberg’s decided his first film on high-def disc is coming out on Blu-ray Disc only. So what do Paramount and DreamWorks do? They bury that little factoid at the tail end of their press release. Nice. Okay, Spielberg hasn’t made any kind of public statements to that effect that he supports only Blu-ray. But why then isn’t Universal able to release any of his films on HD-DVD? Why then does this deal with Paramount and DreamWorks NOT include Spielberg titles? Because Spielberg wouldn’t allow it is the only thing that makes any sense.
I’ll tell you what… I’m betting Fox and MGM start making Blu-ray Disc exclusive announcements and soon. You just watch. The reaction will be swift…
August 21st, 2007 at 1:39 am
When it comes to money, it’s rare the consumer wins. No joke here folks.
August 21st, 2007 at 1:36 pm
NO offence, but you should write about Sony buying out FOX & Lian Gate several quarts ago. To me & everybody reading this new info is just bull. No proof that MS paid. Blu-Ray from the start was a failed technology. The only reason why they’ve made a mild comeback is due to the PS3 which is also a failure unto itself.
I would predict that Warner will be next in line to become HD DVD exclusive. I mean, the last thing we all need is a SONY monopoly. Technology speaks for itself, and HD DVD is superior then Blu-Ray. Facts are Facts.
Disney will also be looking into HD DVD after Paramount releases Shrek 3.
August 21st, 2007 at 4:43 pm
Microsoft is the stupid no-personality-having rich kid at school that PAYS for friends. They get out of trouble because of money, and they’re never required to anything particularly well, because of their money.
I HATE that company.
Oh yeah, Paramount is stupid. I swear, some top level exec got his wallets personally padded by Microsoft because this idea is in no way a benefit to the company as a whole. I mean DAMN, if BLOCKBUSTER has already chosen Blu-Ray, how in the hell do you choose HD-DVD? That’s just stupid.
August 22nd, 2007 at 2:54 am
Jason, Viacom owns Paramount and Blockbuster. Oprah will just tell her audience which is her favorite thing. Who do you think gives Oprah her pay check?
Mark Presely, hate to inform you, Sony is a monoploy.
August 22nd, 2007 at 2:57 am
Mark, your comment is absolute nonsense. Blu-ray and PS3 failed technologies? A Blu-ray disk (25GB single layer, 50GB double layer) is nearly twice the capacity of HD-DVD (15GB single layer, 30GB double layer). Blu-ray is scratch resistant and offers more protection against piracy (illegal copies of the disk).
Playstation 3 is by far the most advanced gaming console. PS3 (0-1% failure rate) is much, much more reliable than Microsoft’s XBox 360 (30-40%+ failure rate). While XBox has an advantage in games right now due to games being developed on it for over 3 1/2 years compared to just over 1 year for PS3, PS3 will catch and surpass XBox 360 in quantity of quality games by Q2 of 2008. The Playstation 3 has dozens of features XBox 360 does not have, and has a long, strong future whereas you’ll probably be seeing another XBox 2009 or 2010, as it will try to get another jump on Sony to compete, while PS3 is built for a longer term, more reliable, with more capable technology.
“Facts are facts”? Where’s yours?
August 22nd, 2007 at 2:59 am
Toshiba leads the HD DVD consortium, which also includes consumer electronics manufacturers Sanyo and NEC. Entertainment companies on board are HBO, New Line Cinema, Paramount Home Entertainment, Universal Studios Home Entertainment and Warner Home Video.
Blu-ray’s consumer electronics list is longer, with Sony, Panasonic, Philips, Samsung, Sharp, Pioneer and LG Electronics. PC makers that support it are Dell, HP and Apple Computer. Also on board are video game maker Electronic Arts and entertainment companies Twentieth Century Fox, Vivendi Universal and Walt Disney.
What are HD DVD and Blu-Ray Disc?
Today’s conventional DVDs can hold 4.7GB of information, but many want a higher-capacity successor to accommodate the larger data demands of high-definition video. HD DVD and Blu-ray both use blue lasers to read and write data; because blue has a shorter wavelength than the red used in DVD and CD lasers, information can be packed more densely on a disc and a single disc can hold more. Both HD DVD and Blu-ray drives are able to read current-generation DVDs.
August 22nd, 2007 at 3:05 am
Conclusion, expect a recorder/player with both formats on one machine. Think of DVD-RW and DVD RW, there was no winner so the solution was to offer DVD recorders which use both formats.
August 22nd, 2007 at 3:10 am
Conclusion, expect a recorder/player with both formats on one machine. Think of DVD-RW and DVD RW, there was no winner so the solution was to offer DVD recorders which use both formats.
HD DVD/Blu-Ray recorder/player. You heard it here first. Of course, by the time these come out they will be dinosaurs. Every two years is a light year in technology.
August 22nd, 2007 at 3:12 am
G-d, I hate typos. “DVD-RW and DVD RW”
August 22nd, 2007 at 3:13 am
Also, Mark, you mention Blu-ray’s “mild comback”.. Blu-ray outselling HD-DVD by over 2-1 is a mild comback? You’re an obvious Microsoft/XBox/HD-DVD fanboy. You stated no facts, just lies. Sony’s Playstation 3 is superior to Microsoft’s XBox 360 in almost every way except for ammount of quality games at the moment, which won’t be the case for long, and XBox Live (which you have to pay extra for and renew again and again for more and more $$$), which may also not be the case due to PS3’s Home which will have many new, interactive features, not just a numbers, achievements and stats page.
It is Fact that PS3 is much more advanced and capable than XBox 360 and it is Fact that Blu-ray has nearly twice the capacity of HD-DVD and is outselling it by over 2-1.
I would like to see some facts that prove otherwise, not just your opinions, predictions, and lies.
August 22nd, 2007 at 3:14 am
Geez, the “plus sign” refuses to appear. Oh well.
August 22nd, 2007 at 3:40 am
BTW, HBO which is on the HD DVD is owned by Time Warner AOL.
August 27th, 2007 at 1:02 am
I used my PS2 as a dvd player and I own more than 1000 dvds. Now I have a PS3 and it is much better than I ever expected. I have it connected to a hd tv with 1080p w/ hdmi connections. The picture and sound quality is so life like, maybe better. I will continue to buy movies, but in blu ray. I think this is just desperation on the part of hddvd and with a little patience the winner will be blu ray. Blu ray is truly next gen and hddvd is just a good dvd player. I was looking forward to Transformers on blu ray, but I guess I will just have to wait. I will never buy a hddvd player.