Universal and Paramount – Holding Dearly onto HD DVD, for now

[vurbano]

iTWire - Universal and Paramount – Holding Dearly onto HD DVD, for now.

by Alex Zaharov-Reutt Monday, 14 January 2008

Although the concept of one high-def video format would be appear to be of universal and paramount importance, especially after the VHS vs Beta wars, we thankfully live in a world where competition, the markets and consumers determine the winners. HD DVD has certainly received what appears to be a knockout blow – but is it truly lights out for this high-def contender?


Although we’ve all seen the Variety report on Universal and Paramount set to drop support of HD DVD, both companies say they’re still releasing movies on HD DVD.

BetaNews quoted Ken Graffeo, the executive VP of HD strategic marketing for Universal Studios Home Entertainment, as saying that: “Contrary to unsubstantiated rumors from unnamed sources, Universal's current plan is to continue to support the HD DVD format”.

Of course, when Graffeo says it is Universal’s ‘current’ plan, he also says it as the co-president of the HD DVD Promotional Group .

The HD DVD Promotional Group’s member list still shows wide support across the industry, although there can be no question that each member is wondering what the future is for the format.

They’ll be wondering whether to regroup with the other members to persevere with and co-operate on the format, whether to promote dual-format players and technologies or whether to go with Blu-ray – especially those members that belong to both the Blu-ray and HD DVD associations, as had Warner.

Just think, companies like Sony were able to sustain their own proprietary formats for years, and still do. Memory Stick, MiniDisc – heck, even Beta tapes – are all still being sold. Memory Sticks have evolved and are multi-card readers are in most desktop and notebook PCs, while MiniDiscs players and recorders were manufactured by a range of companies besides Sony.

Ok, so the Beta tapes are the Betacam SP tapes used in professional camera equipment, and these have been replaced by digital Beta tapes and hard disks - but Beta didn't actually die, and has made Sony lots of money from it over the years.

If a lot of companies continue offering HD DVD as an alternative to Blu-ray, both for high-def video and up to 30GB of data on dual-layer discs, and prices continue falling to current prices for DVD burners and DVD discs, Blu-ray will still have a lot of competition on its hands, especially in the PC market.

The pressure will be on for prices of Blu-ray players, burners and discs to fall to truly wipe out HD DVD – how quickly or slowly will this happen? HD DVD hasn’t disappeared off store shelves overnight, and even if it did, Blu-ray is still challenged by the video download threat, something that is already here on PCs, Xbox 360s, TiVo’s and others.

Consumers will still need a large storage format to easily store, transport and share content in high-definition. 30GB isn’t as much as 50GB but if it’s a lot cheaper it can still be successful, especially if Blu-ray remains expensive.

What could happen if Blu-ray stays expensive and HD DVD doesn't quicky die? Please read onto page 2 for the conclusion...

An expensive Blu-ray set-up could see cracked Blu-ray movies loaded onto pirate HD DVD discs instead, something that is reported to already be happening in China, fuelling the demand for HD DVD players and recorders through the black market of piracy at the expense of a much more expensive Blu-ray world

The market is a funny thing, and doesn’t like being pushed around. HD DVD certainly appears to be mortally wounded, and the defection of Paramount and Universal – if it happens – would hurt even more, but the market – and market manipulation – sometimes makes funny things happen.

HD DVD still has a chance to be the dominant standard for data and video storage on PCs, but only if internal HD DVD burners quickly dropped to the same price as internal DVD burners today, along with pricing blank HD DVDs at the same price as blank DVDs.

If the prices of HD DVD burners didn’t fall, you’d just go for Blu-ray and get the 50GB of storage space instead.

It’s the week after CES, the week after Warner’s Blu-ray bombshell. There’s still plenty of HD DVD out there in computers, in homes, in stores, in warehouses and on manufacturing lines.

But it looks like HD DVD might end up dead as an official movie release format in an attempt to have Blu-ray definitively win over HD DVD.

Still, these moves might be too little, too late for the quick death of HD DVD, even if Paramount and Universal soon dismount. Differences should have been worked out long ago, and all this mess avoided.

In a world where the all important US consumer is suddenly caught up in the sub-prime mess, with worse still predicted to come throughout 2008, draining US consumers (and global consumers, to a degree) of spending power, if HD DVD manages to stay around and is significantly cheaper than Blu-ray, it still has a chance.

If HD DVD gains traction in the PC space, quickly replacing DVD burners, there’ll be plenty of movies on HD DVD - it’s just that none will be official. They’ll have been downloaded, burned to a blank HD DVD disc and played on a cheap HD DVD player, hooked up to a big screen TV.

If that happens, and HD DVD refuses to die, legal movies on HD DVD could well have the biggest comeback since Ben Hur.

And that would be very blue for Blu-ray. There is no winner yet. The Blu-ray and HD DVD show still has quite a few episodes to go yet before we find out if there’s another season!

 

[allargon]

Unless Sony plans to pay off Paramount and Universal, I don't see them defecting. It truly isn't in their interests at all. No studio is raking in the dough of sales of either format. A blockbuster title is lucky to do 150k units on either format vs 5 million plus on DVD.

 

[Mdvalenz]

I didn't think of Chinese bootlegs at all, or converting BR movies into HD-DVD ones using my computer. I was hoping some of the BR exclusive movies in the US would be released in HD-DVD format in Europe and I could import them; which is already happening. I guess I will get a multi reader writer for my computer and do the conversion myself, once prices for those come down. I'll still have to buy the BR movie though.

 

[gadgtfreek]

Unless Sony plans to pay off Paramount and Universal, I don't see them defecting. It truly isn't in their interests at all. No studio is raking in the dough of sales of either format. A blockbuster title is lucky to do 150k units on either format vs 5 million plus on DVD.

I think the deals have already been made. Should see some changes sooner than later.

All I care about at the moment is Paramount and Universal Neutrality.

Especially before Hulk, Iron Man, Indy and Hellboy 2 hit

 

[diogen]

I guess I will get a multi reader writer for my computer and do the conversion myself...

If you make your PC capable of reading both, why bothering with conversion?
Just attach the PC to TV and play it...

Unless you want to archive it.
But new recordable optical media loses in cost efficiency to hard drives... And probably will for a while.

Diogen.

 

[allargon]

If you make your PC capable of reading both, why bothering with conversion?
Just attach the PC to TV and play it...

Unless you want to archive it.
But new recordable optical media loses in cost efficiency to hard drives... And probably will for a while.

Diogen.

PC Blu-Ray/HD DVD combo drives are like $300--cheaper or the same as a BD only drive. The add-on is the cheapest at $179. However, it only plays DVD's and HD DVD's. MS really should lower the price of that thing to $99 or at least $129.

 

[IcEWoLF]

Holding dearly that they will join HD-DVD in the grave and put their business at risk? :shocked

 

[teamerickson]

Holding dearly that they will join HD-DVD in the grave and put their business at risk? :shocked

Paramount had a really good your last year (thanks in large part to Transformers).That was such a great HD movie. You've seen it in HD right? Oh, I forgot, you can't :neener

 

[diogen]

PC Blu-Ray/HD DVD combo drives are like $300--cheaper or the same as a BD only drive.

Exactly!
Together with an HTPC it will be around what a dual format player is today.
Whatever else the HTPC can do is a free bonus...

Diogen.

 

[charper1]

Paramount had a really good your last year (thanks in large part to Transformers).That was such a great HD movie. You've seen it in HD right? Oh, I forgot, you can't :neener

In a very short time it will be on HD PPV (if not already) and then on HD Premiums; so no big loss in waiting right?

Then what; 6, 9, 12 mos on Blu-ray Disc if everything keeps going the way it seems to be going?

 

[vurbano]

In a very short time it will be on HD PPV (if not already) and then on HD Premiums; so no big loss in waiting right?

apples and oranges in PQ and AQ.

 

[IcEWoLF]

Paramount had a really good your last year (thanks in large part to Transformers).That was such a great HD movie. You've seen it in HD right? Oh, I forgot, you can't :neener

I've seen it in HD.
Teamrickson, that is a joke right? Do you think one title will keep HD-DVD happy? No, look at the Blu-ray camp, they have more than 1 title a year that is a huge hit.
Spiderman 3, PoC3, Casino Royale, and few more...HD-DVD has only Transformers that was a big hit, they ain't got nothing coming on their way anyways...

LoR trilogy on Blu-ray exclusive = sad HD-DVD owner that can't afford to buy another player (blu-ray)

 

[diogen]

In a very short time it will be on HD PPV (if not already)...

Already for weeks...

Diogen.

 

[charper1]

So then the "non-HDDVD'ers can't view it HD" comment really is an incorrect statement then?

I don't do PPV so thats why I was unsure if it were out PPV or not.

 

[dantheman77]

LoR trilogy on Blu-ray exclusive = sad HD-DVD owner that can't afford to buy another player (blu-ray)[/QUOTE]

when?? i have not herd this?? please let me know. thanks

 

[teamerickson]

LoR trilogy on Blu-ray exclusive = sad HD-DVD owner that can't afford to buy another player (blu-ray)

I have both formats. I guess you could say I'm Bi.

 

[allargon]

I've seen it in HD.
Teamrickson, that is a joke right? Do you think one title will keep HD-DVD happy? No, look at the Blu-ray camp, they have more than 1 title a year that is a huge hit.
Spiderman 3, PoC3, Casino Royale, and few more...HD-DVD has only Transformers that was a big hit, they ain't got nothing coming on their way anyways...

LoR trilogy on Blu-ray exclusive = sad HD-DVD owner that can't afford to buy another player (blu-ray)

LoTR is still a catalog title. I would say that if New Line were still purple.

Bourne Ultimatum wasn't a hit? How did Superbad do relative to Knocked Up on high def? It should've blown KU out of the water due to a greater installed base.

Beowulf will do well, too.

 

[ONUOsFan]

when?? i have not herd this?? please let me know. thanks

It's not announced yet, that I know of... I think he was just referring to the fact that New Line is now BD-exclusive.

 

[IcEWoLF]

I have both formats. I guess you could say I'm Bi.

I wasn't referring to you, because I know you have both, but for the rest of the HD-DVD crowd that is not getting a Br player.

 

[akodoreign]

I have both formats. I guess you could say I'm Bi.

Have to admit, I have become a bit Bi-Curious myself lately....

think I need to head to the garage and hang some drywall. :up