Warner Goes Blu-Ray Exclusive, biggest payoff yet

Discussion in 'DVD Video' started by caliman.john@gmail.com, Jan 4, 2008.

  1. Guest

    Just days before CES 2008, Warner Home Video has announced that they
    are going to stop supporting HD-DVD and support the Blu-Ray format
    exclusively. There are rumors that this decision was made after Sony
    paid Warner 1.8 billion dollars to sign an exclusive contract, one of
    the largest payoffs yet (the second largest being 150 million to
    Paramount and Dreamworks to go HD-DVD exclusively.)

    Warner's official response, however, was:
    "In response to consumer demand, Warner Bros. Entertainment will
    release its high-definition DVD titles exclusively in the Blu-ray disc
    format beginning later this year" it was announced today by Barry
    Meyer, Chairman & CEO, Warner Bros. and Kevin Tsujihara, President,
    Warner Bros. Home Entertainment Group.

    After August 2007, Sir Howard Stringer, CEO of Sony said that the Blu-
    Ray format was in a stalemate. "It's a difficult fight. We were trying
    to win on the merits, which we were doing for a while, until Paramount
    changed sides," Howard Stringer told the AP.

    Blu-Ray was winning the HD format war in North America and Asia, but
    not Europe, until the Dreamworks/Paramount buyout.

    Many consider this new Warner Home Video buyout to be the end of the
    format war completely.
     
    , Jan 4, 2008
    #1
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  2. Tarkus Guest

    wrote:
    > Many consider this new Warner Home Video buyout to be the end of the
    > format war completely.


    Pretty much, yeah.
     
    Tarkus, Jan 5, 2008
    #2
    1. Advertising

  3. wrote:

    > Just days before CES 2008, Warner Home Video has announced that they
    > are going to stop supporting HD-DVD and support the Blu-Ray format
    > exclusively. There are rumors that this decision was made after Sony
    > paid Warner 1.8 billion dollars to sign an exclusive contract, one of
    > the largest payoffs yet (the second largest being 150 million to
    > Paramount and Dreamworks to go HD-DVD exclusively.)


    Although Home Media Magazine, in their studio-exec interview year-end
    wrapup, tell a different story--
    As Warner's Ron Sanders and Steve Einhorn were clearly trying to put a
    happy (or at least corporately tactful) face on the fact that it Just
    Wasn't Fun Being Neutral Anymore:
    http://www.nxtbook.com/nxtbooks/questex/hom123007/index.php?startpage=48

    ---
    Q: Some said Q4'07 was supposed to be the breakout time, and Q4'06
    before that. Why are things taking longer than projected?
    Einhorn: "Dueling formats have restrained our ability to launch
    large-scale industry-wide marketing initiatives directed toward
    providing purchasers with the simple, direct, and compelling story to
    drive consumer interest and packaged media sales."

    Q: It's not just consumers who are confused--Store-level retailers are
    sending mixed messages to customers. Who needs to take the lead in
    educating the masses?
    Sanders: "Unfortunately, the dueling formats created an information
    logjam in what should have been our conversation with consumers. It's
    just not necessary, it's crucial that we as an industry make
    communication with the consumer THE priority."
    ---

    (And yeah, that Harry Potter mixup--and footing the bill for the
    replacement program--probably WAS the Camel's Straw.)

    Derek Janssen (so, lemme guess, which camp came up with the "They were
    probably bribed!" theory, with "Sony musta done it!" embellishments? 9_9 )
     
    Derek Janssen, Jan 5, 2008
    #3
  4. Jim Thompson Guest

    On Fri, 04 Jan 2008 16:57:40 -0800, Tarkus
    <> wrote:

    > wrote:
    >> Many consider this new Warner Home Video buyout to be the end of the
    >> format war completely.

    >
    >Pretty much, yeah.


    Sorta VHS versus Beta de ja vu all over again ;-)

    ...Jim Thompson
    --
    | James E.Thompson, P.E. | mens |
    | Analog Innovations, Inc. | et |
    | Analog/Mixed-Signal ASIC's and Discrete Systems | manus |
    | Phoenix, Arizona Voice:(480)460-2350 | |
    | E-mail Address at Website Fax:(480)460-2142 | Brass Rat |
    | http://www.analog-innovations.com | 1962 |

    America: Land of the Free, Because of the Brave
     
    Jim Thompson, Jan 5, 2008
    #4
  5. In article <HDAfj.914$EN6.627@trndny07>,
    Derek Janssen <> wrote:

    > wrote:
    >
    > > Just days before CES 2008, Warner Home Video has announced that they
    > > are going to stop supporting HD-DVD and support the Blu-Ray format
    > > exclusively. There are rumors that this decision was made after Sony
    > > paid Warner 1.8 billion dollars to sign an exclusive contract, one of
    > > the largest payoffs yet (the second largest being 150 million to
    > > Paramount and Dreamworks to go HD-DVD exclusively.)

    >
    > Although Home Media Magazine, in their studio-exec interview year-end
    > wrapup, tell a different story--
    > As Warner's Ron Sanders and Steve Einhorn were clearly trying to put a
    > happy (or at least corporately tactful) face on the fact that it Just
    > Wasn't Fun Being Neutral Anymore:
    > http://www.nxtbook.com/nxtbooks/questex/hom123007/index.php?startpage=48
    >
    > ---
    > Q: Some said Q4'07 was supposed to be the breakout time, and Q4'06
    > before that. Why are things taking longer than projected?
    > Einhorn: "Dueling formats have restrained our ability to launch
    > large-scale industry-wide marketing initiatives directed toward
    > providing purchasers with the simple, direct, and compelling story to
    > drive consumer interest and packaged media sales."
    >
    > Q: It's not just consumers who are confused--Store-level retailers are
    > sending mixed messages to customers. Who needs to take the lead in
    > educating the masses?
    > Sanders: "Unfortunately, the dueling formats created an information
    > logjam in what should have been our conversation with consumers. It's
    > just not necessary, it's crucial that we as an industry make
    > communication with the consumer THE priority."
    > ---
    >
    > (And yeah, that Harry Potter mixup--and footing the bill for the
    > replacement program--probably WAS the Camel's Straw.)
    >
    > Derek Janssen (so, lemme guess, which camp came up with the "They were
    > probably bribed!" theory, with "Sony musta done it!" embellishments? 9_9 )
    >


    Rumor has it that over a Billion$ was involved this time. But who
    cares?

    Let's assume that this is the death-knell of HDDVD for the moment. Did
    BluRay win? NO!!

    Well, not unless you count holding on to a 1-2% niche as winning. To
    gain the mass-market, they need a sub $200 player, imo. But Sony, as
    well as others, have insisted that they are not interested in going to
    the low price model that permeates the SD DVD market today. So now
    we'll see just how badly they really want the mass market.

    Will we see a sub-$200 player soon?
    What about all those sales that have pushed the actual selling price of
    BD movies to the $15 pricepoint? Will they still happen?

    Watching this unfold should be interesting and it certainly isn't the
    time to give up the old Netflix subsrcription... :)
     
    Lloyd Parsons, Jan 5, 2008
    #5
  6. Lloyd Parsons wrote:
    >
    > Let's assume that this is the death-knell of HDDVD for the moment.


    <obMaxBialystock> ASSUME away... :)

    > Well, not unless you count holding on to a 1-2% niche as winning. To
    > gain the mass-market, they need a sub $200 player, imo. But Sony, as
    > well as others, have insisted that they are not interested in going to
    > the low price model that permeates the SD DVD market today. So now
    > we'll see just how badly they really want the mass market.
    >
    > Will we see a sub-$200 player soon?
    > What about all those sales that have pushed the actual selling price of
    > BD movies to the $15 pricepoint? Will they still happen?


    They will as soon as companies can stop holding back production and the
    cost of equipment to a "niche" level, and begin to accept one product as
    being more available in the mainstream--
    Thus making the parts, disks, and production more available at a lower
    cost, thus lowering the costs of movies and players across the board,
    and, UNLIKE last-ditch fire sales, *keeping* prices lower.

    Which's kind of the whole point of the "There can only be One" war in
    the first place.
    Some of us remember the days before June 1999, and we're not itching to
    have $799 DVD players and $39.95 disks back again.

    Derek Janssen (some of us old-timers remember how the system works)
     
    Derek Janssen, Jan 5, 2008
    #6
  7. Kuskokwim Guest

    On Fri, 4 Jan 2008 15:42:09 -0800 (PST), wrote:

    > Just days before CES 2008, Warner Home Video has announced that they
    > are going to stop supporting HD-DVD and support the Blu-Ray format
    > exclusively. There are rumors that this decision was made after Sony
    > paid Warner 1.8 billion dollars to sign an exclusive contract..................


    "Warner Home Entertainment President Kevin Tsujihara says the studio took
    no pay-offs to exclusively back Blu-ray"
    The rest of the story:
    http://www.highdefdigest.com/news/show/Warner/Warner:_No_Payoff_for_Move_to_Blu-ray/1327
    or if that link does not work for you:
    http://tinyurl.com/yrc89a
     
    Kuskokwim, Jan 5, 2008
    #7
  8. Tarkus Guest

    Jim Thompson wrote:
    > On Fri, 04 Jan 2008 16:57:40 -0800, Tarkus
    > <> wrote:
    >
    >> wrote:
    >>> Many consider this new Warner Home Video buyout to be the end of the
    >>> format war completely.

    >> Pretty much, yeah.

    >
    > Sorta VHS versus Beta de ja vu all over again ;-)


    Except this time Sony wins.
     
    Tarkus, Jan 5, 2008
    #8
  9. On Fri, 04 Jan 2008 18:00:45 -0700, Jim Thompson
    <> wrote:

    >Sorta VHS versus Beta de ja vu all over again ;-)



    Absolutely nothing like it.
     
    ChairmanOfTheBored, Jan 5, 2008
    #9
  10. T.B. Guest

    wrote:

    > Just days before CES 2008, Warner Home Video has announced that they
    > are going to stop supporting HD-DVD and support the Blu-Ray format
    > exclusively. There are rumors that this decision was made after Sony
    > paid Warner 1.8 billion dollars to sign an exclusive contract, one of
    > the largest payoffs yet (the second largest being 150 million to
    > Paramount and Dreamworks to go HD-DVD exclusively.)
    >
    > Warner's official response, however, was:
    > "In response to consumer demand, Warner Bros. Entertainment will
    > release its high-definition DVD titles exclusively in the Blu-ray disc
    > format beginning later this year" it was announced today by Barry
    > Meyer, Chairman & CEO, Warner Bros. and Kevin Tsujihara, President,
    > Warner Bros. Home Entertainment Group.
    >
    > After August 2007, Sir Howard Stringer, CEO of Sony said that the Blu-
    > Ray format was in a stalemate. "It's a difficult fight. We were trying
    > to win on the merits, which we were doing for a while, until Paramount
    > changed sides," Howard Stringer told the AP.
    >
    > Blu-Ray was winning the HD format war in North America and Asia, but
    > not Europe, until the Dreamworks/Paramount buyout.
    >
    > Many consider this new Warner Home Video buyout to be the end of the
    > format war completely.


    Glad I picked the right HD format. I wouldn't call this the death-knell for
    the so-called format war just yet though.

    And seriously, no one in their right mind should expect Universal to roll
    over and start churning out BR titles by Spring. Also, I wonder where this
    leaves Paramount and Dreamworks. Are those studios stuck releasing their
    product on HD-DVDs for the next couple of years or however long their
    "agreement" with Toshiba/Microsoft is supposed to last?

    Considering the writer's strike dragging on and no to the point it'll likely
    kill the Fall tv season as well as delay a lot of production on various
    movies, I wonder if studios will be more apt to rush release a lot of
    product to compensate for lost revenue?

    T.B.
     
    T.B., Jan 5, 2008
    #10
  11. T.B. wrote:
    >
    > And seriously, no one in their right mind should expect Universal to
    > roll over and start churning out BR titles by Spring.


    Universal's not happy, but they're still Microsoft's personal prison-b*tch--
    And their orders are to go down with Toshiba/MS's "Look at all the cheap
    prices!" corporate-line ship, till the last bubble.

    > Also, I wonder where this leaves Paramount and Dreamworks. Are those studios stuck
    > releasing their product on HD-DVDs for the next couple of years or
    > however long their "agreement" with Toshiba/Microsoft is supposed to last?


    Their "agreement" was 18 months, ending (conveniently) in Feb. '09.

    And yeah, from what we've seen from sales and statements, they'll just
    RUSH to renew contracts like a house a'fire... 9_9

    Derek Janssen
     
    Derek Janssen, Jan 5, 2008
    #11
  12. Tarkus Guest

    T.B. wrote:
    > Glad I picked the right HD format. I wouldn't call this the death-knell
    > for the so-called format war just yet though.


    I would. Even the staunchest HD DVD supporters are conceding defeat in
    the HD forums. It's not "officially" over, but it's only a matter of
    time now. I wouldn't be surprised if Toshiba pulled the plug long
    before their remaining exclusive contracts expire.
     
    Tarkus, Jan 5, 2008
    #12
  13. In article <FTAfj.31$xA6.19@trndny09>,
    Derek Janssen <> wrote:

    > Lloyd Parsons wrote:
    > >
    > > Let's assume that this is the death-knell of HDDVD for the moment.

    >
    > <obMaxBialystock> ASSUME away... :)
    >
    > > Well, not unless you count holding on to a 1-2% niche as winning. To
    > > gain the mass-market, they need a sub $200 player, imo. But Sony, as
    > > well as others, have insisted that they are not interested in going to
    > > the low price model that permeates the SD DVD market today. So now
    > > we'll see just how badly they really want the mass market.
    > >
    > > Will we see a sub-$200 player soon?
    > > What about all those sales that have pushed the actual selling price of
    > > BD movies to the $15 pricepoint? Will they still happen?

    >
    > They will as soon as companies can stop holding back production and the
    > cost of equipment to a "niche" level, and begin to accept one product as
    > being more available in the mainstream--
    > Thus making the parts, disks, and production more available at a lower
    > cost, thus lowering the costs of movies and players across the board,
    > and, UNLIKE last-ditch fire sales, *keeping* prices lower.
    >
    > Which's kind of the whole point of the "There can only be One" war in
    > the first place.
    > Some of us remember the days before June 1999, and we're not itching to
    > have $799 DVD players and $39.95 disks back again.
    >
    > Derek Janssen (some of us old-timers remember how the system works)
    >


    You haven't been paying attention to Sony, et al. They have been very
    vocal that they will not go down the el-cheapo road with BluRay. We'll
    see if they can hold to that or not.

    But they HAVE to do something to attract the masses if they want to be
    anything other than a niche product. That something is at least one
    sub-$200 player, you gotta hit that impulse buy pocket. $350+ for a
    player doesn't get that done.

    And then there is the MSRP on BD disks. Fox's are almost always at $40,
    others not too far below. The WAR got us the BOGO sales and others to
    drive down the real cost to $15. So let's see what happens to all those
    sales, and really let us see what happens to MSRP.

    There is serious dollar considerations that haven't been addressed to
    bring HiDef DVDs to the masses.
     
    Lloyd Parsons, Jan 5, 2008
    #13
  14. Tarkus Guest

    Lloyd Parsons wrote:
    > You haven't been paying attention to Sony, et al. They have been very
    > vocal that they will not go down the el-cheapo road with BluRay. We'll
    > see if they can hold to that or not.
    >
    > But they HAVE to do something to attract the masses if they want to be
    > anything other than a niche product. That something is at least one
    > sub-$200 player, you gotta hit that impulse buy pocket. $350+ for a
    > player doesn't get that done.
    >
    > And then there is the MSRP on BD disks. Fox's are almost always at $40,
    > others not too far below. The WAR got us the BOGO sales and others to
    > drive down the real cost to $15. So let's see what happens to all those
    > sales, and really let us see what happens to MSRP.
    >
    > There is serious dollar considerations that haven't been addressed to
    > bring HiDef DVDs to the masses.


    It's not like Sony is the only one that's going to be selling players
    and movies. I think this will actually accelerate reduction in prices,
    now that people can embrace one format. It means more buyers, and thus,
    more competition for their money.

    One only has to look at history with VHS, CD and DVD formats. They all
    rapidly decreased in price as they got more mainstream.
     
    Tarkus, Jan 5, 2008
    #14
  15. In article <>,
    Tarkus <> wrote:

    > Lloyd Parsons wrote:
    > > You haven't been paying attention to Sony, et al. They have been very
    > > vocal that they will not go down the el-cheapo road with BluRay. We'll
    > > see if they can hold to that or not.
    > >
    > > But they HAVE to do something to attract the masses if they want to be
    > > anything other than a niche product. That something is at least one
    > > sub-$200 player, you gotta hit that impulse buy pocket. $350+ for a
    > > player doesn't get that done.
    > >
    > > And then there is the MSRP on BD disks. Fox's are almost always at $40,
    > > others not too far below. The WAR got us the BOGO sales and others to
    > > drive down the real cost to $15. So let's see what happens to all those
    > > sales, and really let us see what happens to MSRP.
    > >
    > > There is serious dollar considerations that haven't been addressed to
    > > bring HiDef DVDs to the masses.

    >
    > It's not like Sony is the only one that's going to be selling players
    > and movies. I think this will actually accelerate reduction in prices,
    > now that people can embrace one format. It means more buyers, and thus,
    > more competition for their money.
    >
    > One only has to look at history with VHS, CD and DVD formats. They all
    > rapidly decreased in price as they got more mainstream.


    That is exactly the history that Sony and others don't want to happen.
    Between DRM and holding the profits up on the movies and players, which
    is what Sony was pushing all of them with, don't expect lowering of
    prices anytime soon.

    I think it will happen, just as slowly as they can drag it out. They
    want to make their bundle before the downward price pressure takes over.
    It's either that or get relegated to niche status.

    Now BD is in the real war, with standard DVD's. This is a different
    animal. Well entrenched, cheap and good enough for most of the average
    viewer. It is potentially a very tough nut to crack.
     
    Lloyd Parsons, Jan 5, 2008
    #15
  16. Telstar Guest

    "Lloyd Parsons" <> wrote in message
    news:...
    > In article <FTAfj.31$xA6.19@trndny09>,
    > Derek Janssen <> wrote:
    >
    >> Lloyd Parsons wrote:
    >> >
    >> > Let's assume that this is the death-knell of HDDVD for the moment.

    >>
    >> <obMaxBialystock> ASSUME away... :)
    >>
    >> > Well, not unless you count holding on to a 1-2% niche as winning. To
    >> > gain the mass-market, they need a sub $200 player, imo. But Sony, as
    >> > well as others, have insisted that they are not interested in going to
    >> > the low price model that permeates the SD DVD market today. So now
    >> > we'll see just how badly they really want the mass market.
    >> >
    >> > Will we see a sub-$200 player soon?
    >> > What about all those sales that have pushed the actual selling price of
    >> > BD movies to the $15 pricepoint? Will they still happen?

    >>
    >> They will as soon as companies can stop holding back production and the
    >> cost of equipment to a "niche" level, and begin to accept one product as
    >> being more available in the mainstream--
    >> Thus making the parts, disks, and production more available at a lower
    >> cost, thus lowering the costs of movies and players across the board,
    >> and, UNLIKE last-ditch fire sales, *keeping* prices lower.
    >>
    >> Which's kind of the whole point of the "There can only be One" war in
    >> the first place.
    >> Some of us remember the days before June 1999, and we're not itching to
    >> have $799 DVD players and $39.95 disks back again.
    >>
    >> Derek Janssen (some of us old-timers remember how the system works)
    >>

    >
    > You haven't been paying attention to Sony, et al. They have been very
    > vocal that they will not go down the el-cheapo road with BluRay. We'll
    > see if they can hold to that or not.
    >
    > But they HAVE to do something to attract the masses if they want to be
    > anything other than a niche product. That something is at least one
    > sub-$200 player, you gotta hit that impulse buy pocket. $350+ for a
    > player doesn't get that done.
    >
    > And then there is the MSRP on BD disks. Fox's are almost always at $40,
    > others not too far below. The WAR got us the BOGO sales and others to
    > drive down the real cost to $15. So let's see what happens to all those
    > sales, and really let us see what happens to MSRP.
    >
    > There is serious dollar considerations that haven't been addressed to
    > bring HiDef DVDs to the masses.


    Another issue IMO is that neither format has produced PC RW drives that are
    anywhere near a decent pricepoint and energy efficiency.
     
    Telstar, Jan 5, 2008
    #16
  17. Keith Guest

    I will NEVER use Blu-Ray! Sony SUCKS! They're like the Galactic Empire
    from Star Wars!

    Keith

    wrote:
    > Just days before CES 2008, Warner Home Video has announced that they
    > are going to stop supporting HD-DVD and support the Blu-Ray format
    > exclusively. There are rumors that this decision was made after Sony
    > paid Warner 1.8 billion dollars to sign an exclusive contract, one of
    > the largest payoffs yet (the second largest being 150 million to
    > Paramount and Dreamworks to go HD-DVD exclusively.)
    >
    > Warner's official response, however, was:
    > "In response to consumer demand, Warner Bros. Entertainment will
    > release its high-definition DVD titles exclusively in the Blu-ray disc
    > format beginning later this year" it was announced today by Barry
    > Meyer, Chairman & CEO, Warner Bros. and Kevin Tsujihara, President,
    > Warner Bros. Home Entertainment Group.
    >
    > After August 2007, Sir Howard Stringer, CEO of Sony said that the Blu-
    > Ray format was in a stalemate. "It's a difficult fight. We were trying
    > to win on the merits, which we were doing for a while, until Paramount
    > changed sides," Howard Stringer told the AP.
    >
    > Blu-Ray was winning the HD format war in North America and Asia, but
    > not Europe, until the Dreamworks/Paramount buyout.
    >
    > Many consider this new Warner Home Video buyout to be the end of the
    > format war completely.
    >
     
    Keith, Jan 5, 2008
    #17
  18. On Sat, 05 Jan 2008 00:07:45 -0600, Keith <> wrote:

    >I will NEVER use Blu-Ray! Sony SUCKS! They're like the Galactic Empire
    >from Star Wars!
    >
    >Keith



    See, folks? Now THIS GUY is an example of a troll.
     
    StickThatInYourPipeAndSmokeIt, Jan 5, 2008
    #18
  19. StickThatInYourPipeAndSmokeIt wrote:
    > On Sat, 05 Jan 2008 00:07:45 -0600, Keith <> wrote:
    >
    >
    >>I will NEVER use Blu-Ray! Sony SUCKS! They're like the Galactic Empire

    >
    >>from Star Wars!


    >
    > See, folks? Now THIS GUY is an example of a troll.


    No, y'see, he was showing what life was back WAYYY, way back in 2006!

    Without historical recreation actors, you might never be able to picture
    such a primitive, backwards time, back when we thought the formats were
    <quote-fingers> "equal", and that the whole battle was some
    good-vs.-evil to prove how "evil" Sony was...

    Derek Janssen (oh, watch, now he'll say something about Rootkits and
    ATRAC!--I love performance art!) :)
     
    Derek Janssen, Jan 5, 2008
    #19
  20. On Sat, 05 Jan 2008 07:54:04 GMT, Derek Janssen
    <> wrote:

    >StickThatInYourPipeAndSmokeIt wrote:
    >> On Sat, 05 Jan 2008 00:07:45 -0600, Keith <> wrote:
    >>
    >>
    >>>I will NEVER use Blu-Ray! Sony SUCKS! They're like the Galactic Empire

    >>
    >>>from Star Wars!

    >
    >>
    >> See, folks? Now THIS GUY is an example of a troll.

    >
    >No, y'see, he was showing what life was back WAYYY, way back in 2006!
    >
    >Without historical recreation actors, you might never be able to picture
    >such a primitive, backwards time, back when we thought the formats were
    ><quote-fingers> "equal", and that the whole battle was some
    >good-vs.-evil to prove how "evil" Sony was...
    >
    >Derek Janssen (oh, watch, now he'll say something about Rootkits and
    >ATRAC!--I love performance art!) :)
    >



    Not at all, dipshit.

    More like about how Sony owns too goddamned much as it is. They are
    worse than Microsoft is.
     
    StickThatInYourPipeAndSmokeIt, Jan 5, 2008
    #20
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