Paramount and DreamWorks Animation To Support HD DVD

[Ian]

Paramount and DreamWorks Animation have announced that they will be releasing their movies exclusively on HD DVD.

http://www.comingsoon.net/news/movienews.php?id=36487

Paramount Pictures and DreamWorks Animation SKG 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.

I guess I'll need to buy an HD DVD player if I want to watch Transformers in high-def.

[Ian]

Here's their press release:

http://www.prnewswire.com/cgi-bin/stori ... 398&EDATE=

[oslik3]

"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.

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.

So the deciding factor in their exclusivity decision was the “affordability for the consumer"... Why not release both versions and let the consumers decide which version is more affordable for them ? I understand that producing two versions of the same film involves more pain and costlier for the Paramount, but come out and say, in a patronizing way, that their decision was partially made in the name of the consumer and for the good of the consumer...

[CowboySlim]

Oh-oh, my grandson is putting the sweet on me to buy him a Wii, and now I'll have to get HD DVD player for them (and granddaughter) to watch Shrek movies.

[vinnie97]

I'm doing my best to contain the ROFLs.

I've been saying (as have others) that hybrid players will become the eventual norm for all high-def viewing in the near future. Now we just have to hope that both formats aren't eclipsed by the next big thing...then the joke's on us (AND the movie studios).

[Justin42]

Well, this is annoying.

I finally get a PS3 and suddenly studios are going from neutral to exclusive? This wasn't supposed to happen!

Sigh. I'm not particularly in the BluRay camp on purpose, it's just annoying to finally have a player and then a studio decides to go the other way. And I was really looking forward to HD Transformers.

[Ian]

So the deciding factor in their exclusivity decision was the “affordability for the consumer"... Why not release both versions and let the consumers decide which version is more affordable for them ?

I think something happened behind closed doors that we don't know about. Affordable or not, you gotta be nuts to drop Blu-ray when you're selling twice as many movies in that format.

[oslik3]

I think something happened behind closed doors that we don't know about. Affordable or not, you gotta be nuts to drop Blu-ray when you're selling twice as many movies in that format.

I thought about that - the reasons that Paramount listed are just too lame and unbeleivable to be the only reasons. It just looks like they are trying to cover up some other real business-related reason. Have to look into [anti]-relationship between Viacom and Sony, I guess ? We can make just too many guesses. Hopefully the truth - real reasons - will come out.

[vinnie97]

upfront money sums involving MS cash come to mind. Who knows...I knew spending $500 or more on something devised by Sony would be a mistake...very glad I steered clear from the PS3. PS3 ought to see some near record low sales this month.

Frankly, the HD DVD set-tops have a greater chance of falling in price and winning over the Wal-Mart crowd before Blu-Ray does and that could be reason enough for Paramount.

[OoAnd1]

Now I'm very happy I went with HD DVD. Transformers is THE movie I can't wait to watch in HD.

Trying to decide between Spider-Man in Blu-Ray and Heroes in HD DVD was tough for me but now it's obvious.

Transformers, Heroes, 300, TMNT, Serenity, King Kong, plus my 5 free HD DVDs is a GREAT HD collection in just a short time. With many more to come.

Buying the 360 add-on for 150 was the best thing I could have done.

[OoAnd1]

I think something happened behind closed doors that we don't know about. Affordable or not, you gotta be nuts to drop Blu-ray when you're selling twice as many movies in that format.

I thought about that - the reasons that Paramount listed are just too lame and unbeleivable to be the only reasons. It just looks like they are trying to cover up some other real business-related reason. Have to look into [anti]-relationship between Viacom and Sony, I guess ? We can make just too many guesses. Hopefully the truth - real reasons - will come out.

The HD DVD people are just trying to get support the same way the Blu-Ray people did. It's a war, they're ALL in it for the money, they don't care about what's simpler or cheaper for us. Just whatever gets them more money in their pockets, whether it be from sales or exclusivity deals. I can't blame either side for their decisions, it's a business.

[oslik3]

Wait, it's not ALL that bad (for BluRay).... :

Today's announcement does not include films directed by Steven Spielberg as his films are not exclusive to either format.

[CowboySlim]

OK, I just went back to work.
I'll have plenty much money, so I'll just buy 'em all.

[dolphinius_rex]

Regardless of what format you support, I can't believe anyone would agree with what Paramount is doing...

Step 1 - Move from HD DVD exclusive support for format neutral support in order to determine customer demand
Step 2 - sell 2x as much on Blu-Ray as HD DVD
Step 3 - Flip the bird to 66% of your customer base and go back to HD DVD exclusive support

I'm sorry.... but where is the logic in this? This is a slap in the face of all their Blu-Ray customers, who have been supporting them from day 1. If Universal jumped immediately into Blu-Ray exclusivity at the beginning of 2008 because of the strong sales over Christmas, I would be equally appalled.

[OoAnd1]

Regardless of what format you support, I can't believe anyone would agree with what Paramount is doing...

Step 1 - Move from HD DVD exclusive support for format neutral support in order to determine customer demand
Step 2 - sell 2x as much on Blu-Ray as HD DVD
Step 3 - Flip the bird to 66% of your customer base and go back to HD DVD exclusive support

I'm sorry.... but where is the logic in this? This is a slap in the face of all their Blu-Ray customers, who have been supporting them from day 1. If Universal jumped immediately into Blu-Ray exclusivity at the beginning of 2008 because of the strong sales over Christmas, I would be equally appalled.

They don't care about their Blu-Ray or HD DVD customer base. Both makeup what, 1 % of their sales? DVD is still King. DVD is the customer base they care about. This move is about supporting a format, not trying to "help", "reach" or "support" a customer base.

It's a business, obviously they'll make more money signing a contract with HD DVD than selling a few hundred thousand Blu-Ray movies. So I think Paramount makes out good if they indeed got paid by HD DVD. HD DVD is the one who's losing money. But I can't blame them since their just trying to protect their investment (as well as mine).

[dolphinius_rex]

Well done Paramount.... you just pissed off Michael Bay, who has sworn off making Transformers 2:
http://www.shootfortheedit.com/forums/v ... sc&start=0

Steven Spielburg probably isn't too impressed either... although he did get his movie neutrality clause in the contract unlike Michael Bay.

How many big name directors/producers can Paramount afford to piss off for $150 million?

[Ian]

The animated TF movie is still being released on Blu-ray.

http://www.play.com/DVD/Blu-ray/4-/3434 ... oduct.html

[vinnie97]

Well done Paramount.... you just pissed off Michael Bay, who has sworn off making Transformers 2:
http://www.shootfortheedit.com/forums/v ... sc&start=0

Steven Spielburg probably isn't too impressed either... although he did get his movie neutrality clause in the contract unlike Michael Bay.

How many big name directors/producers can Paramount afford to piss off for $150 million?

crybabies.

[Wesociety]

And the war begins again.

[Ian]

Yep, they were paid off. Paramount got $50 million and Dreamworks $100 million.

http://www.deadlinehollywooddaily.com/d ... ormat-war/

I've learned there will be two new developments announced later this week today in the ongoing Blu-ray vs HD-DVD format war: separate HD-DVD deals with Paramount and DreamWorks Animation that involve major millions of dollars. I've got a confidential report from Pali Research managing director Richard S. Greenfield, a media analyst for entertainment and cable, that discussed the deals (see below), spinning them as "the format war is now set to intensify". But sources have given me updated details which show the HD-DVD side is paying through the nose -- I'm told $50 million to Paramount, and $100 million to DreamWorks Animation -- to try to show the strength of what we all know is a dying format.

Even with that amount of money, it still seems like a silly decision to me.

[Wesociety]

Bill Hunt at the DigitalBits is claiming that Microsoft has offered up the payment to Paramount to go HD DVD exclusive, but a spokesman from Microsoft has officially stated that Microsoft has made absolutely no cash payments whatsoever to Paramount or DreamWorks.

[oslik3]

I guess the whole situation is not unlike when Sony bought the whole studio - I forget which one - to force it to go B-Ray exclusively.
When Paramount excepts investment to go exclusively HDDVD is similar to Sony's move - and that's fine - but with one big exception: Paramount didn't mention the investment in their press release, and instead lied that it did it for the sake of consumer and "families".

[oslik3]

So now Sony has to make the next move. How about paying off Universal to go format-neutral ? That would make things interesting as in soap opera kind of interesting..

[dolphinius_rex]

I guess the whole situation is not unlike when Sony bought the whole studio - I forget which one - to force it to go B-Ray exclusively.
When Paramount excepts investment to go exclusively HDDVD is similar to Sony's move - and that's fine - but with one big exception: Paramount didn't mention the investment in their press release, and instead lied that it did it for the sake of consumer and "families".

You mean when Sony bought a movie studio years and years ago way before there was a HiDef format war?

[dolphinius_rex]

Bill Hunt at the DigitalBits is claiming that Microsoft has offered up the payment to Paramount to go HD DVD exclusive, but a spokesman from Microsoft has officially stated that Microsoft has made absolutely no cash payments whatsoever to Paramount or DreamWorks.

MS would not make cash payments for sure. But that's saying *NOTHING* about cash equivilants. MS has a lot of options that they can decide to provide freely which would deffinately be worth something to Paramount.... like free movie distribution online of their titles for the term of their contract... massive advertising deals perhaps in game or online with their console and controlled websites. MS has TONS of options there.

The funny thing is.... isn't this EXACTLY what is being looking for by that European commission that had HD DVD fans calling on the dirty tactics of the BDA (which has yet to be proven at all, and was started by suggestions from MS of all companies!!)???