Hypersonic

I think we need a new forum section for high-tech etc.

Warner Bros. to release high-def DVDs exclusively in Blu-ray

By ALEX VEIGA
AP Business Writer

LOS ANGELES (AP) -- Warner Bros. Entertainment said Friday it will release movie discs only in the Blu-ray format, becoming the latest studio to reject the rival HD DVD technology and further complicating the high-definition landscape for consumers.

Warner Bros., owned by Time Warner Inc., was the only remaining studio releasing high-definition DVDs in both formats.

It is the fifth studio to back Blu-ray, developed by Sony Corp. Only two support the HD DVD format, developed by Toshiba Corp.
Both formats deliver crisp, clear high-definition pictures and sound. But they are incompatible with each other, and neither plays on older DVD players, which means consumers seeking top-quality playback face a dilemma.

Warner said it decided to go with Blu-ray because consumers have shown a stronger preference for that format than HD DVD.
"The window of opportunity for high-definition DVD could be missed if format confusion continues to linger," Warner Bros. chairman and Chief Executive Barry Meyer said in a statement.
"We believe that exclusively distributing in Blu-ray will further the potential for mass market success and ultimately benefit retailers, producers and, most importantly, consumers," the statement said.

The company said sales of Blu-ray discs in the U.S. generated $169 million last year, while sales of discs in the HD DVD format totaled $103 million.

About 60 percent of Warner's sales of U.S. high-definition discs were Blu-ray titles and the other 40 percent were HD DVD, said Kevin Tsujihara, president of Warner Bros. Home Entertainment Group.

Outside the U.S., the divide was far wider, with Warner's Blu-ray discs outselling titles in HD DVD in Britain and Japan, among other markets, Tsujihara said.

Sales of set-top high-definition disc players in the fourth quarter of 2007 also factored into Warner's decision.

The company saw an acceleration in sales of Blu-ray players at the end of the quarter, particularly in December, Tsujihara said.
"We always viewed set-tops as the most significant indicator" of consumers' format preference, he said.

Still, one alarming trend Warner keyed on was that consumers didn't appear motivated by price reductions on high-definition disc players.

"When we saw that was not impacting sales in the level that it should have, and the consumer research that we did indicated that the consumers were holding back from buying either one of the two formats ... we thought it was the right time to act," Tsujihara said, noting that even sales of standard DVDs were affected because consumers appeared unsure over which format to go with.

"That was kind of the worst of all worlds for us," he said.
There are some differences between the formats. Blu-ray discs can hold more data - 50 gigabytes compared with HD DVD's 30 GB - but the technology's new manufacturing techniques boosted initial costs.

HD DVDs, on the other hand, are essentially DVDs on steroids, meaning movie studios can turn to existing assembly lines to produce them in mass.

Warner Home Video will continue to release new titles in HD DVD until the end of May.

Pali Capital analyst Rich Greenfield said in a Web posting Friday that he expects the HD DVD format to "die a quick death, versus a prolonged format war."

"While we still expect overall consumer spending on DVDs to decline at least 3 percent in 2008, the risk of an even worse 2008 DVD environment has most likely been avoided by Warner's early 2008 decision," Greenfield wrote.

The North American HD DVD Promotional Group Inc., a trade association that promotes the HD DVD format, did not have an immediate comment Friday.

Calls to representatives for Toshiba, Sony and the Blu-ray Disc Association were not immediately returned.

Studios and retailers have been choosing sides in the high-def format war in recent months.

Blu-ray got a big boost in June when Blockbuster Inc. announced it would stock only Blu-ray titles as it expands its high-definition offerings.

Target Inc., the nation's second-largest retailer, decided in July to sell only Blu-ray DVD players.

Among the other major studios that have decided to go with Blu-ray: The Walt Disney Co., Sony Corp.'s Sony Pictures, News Corp.'s Twentieth Century Fox and Metro-Goldwyn-Mayer.

Viacom's Paramount Pictures, which also owns DreamWorks SKG, dropped its support for Blu-ray and said it would start distributing films exclusively in the HD DVD format.

Universal Pictures, a unit of General Electric, also releases films only in HD DVD.
Time Warner shares slipped 42 cents, or 2.5 percent, to $15.91 Friday.



Toshiba defiant after Warner decision to drop HD DVD in favor of Blu-ray

LAS VEGAS (AP) -- Toshiba Corp. executives had a tough moment Sunday, when they had to face reporters just two days after its HD DVD movie disc format was dealt a potentially fatal blow by the defection of Warner Bros. Entertainment to a rival technology.

"It's difficult for me to read the comments of the pundits that HD is dead," said Jodi Sally, vice president of marketing for digital audio and video at Toshiba America Consumer Products. She was speaking at a news conference ahead of the International Consumer Electronics Show, which starts here Monday.

Sally indicated that Toshiba would continue its fight with a Sony Corp.-led group to dominate the market for a replacement to the DVD.

"We've been declared dead before," Sally said.
Only two major U.S. studios now support HD DVD, while five support Sony's Blu-ray disc. Warner is the last studio to put out movies in both formats, but will stop publishing HD DVDs in May.

Akio Ozaka, head of Toshiba America Consumer Products, said the company was surprised by Warner's announcement Friday.

"We were particularly disappointed that the decision was made in spite of the significant momentum HD DVD has gained," Ozaka said.

HD DVD players, practically all of which are made by Toshiba, had their best sales ever in the fourth quarter of last year, Ozaka said.

Sally said HD DVD players represented 49.3 percent of the players for high definition discs sold as of Dec. 22, quoting figures from market research firm NPD. However, the figures don't include sales of Sony Corp.'s PlayStation 3 game console, which plays Blu-ray discs. The format also has consistently beaten HD DVD in the number of discs sold.

While Toshiba sounded a defiant note, a media event scheduled for Sunday evening by the North American HD DVD Promotional Group, which includes Intel Corp. and Microsoft Corp., was canceled because of Warner's defection.

"We are currently discussing the potential impact of this announcement with the other HD DVD partner companies and evaluating next steps," the group said in a statement.

Warner said its decision to drop HD DVD was based on consumers' preference for Blu-ray.

The availability of two competing formats, and the confusion and uncertainty it's sowed among buyers, has been widely blamed for the slow adoption of high-definition players in general.
Warner Bros. Entertainment is owned by Time Warner Inc.

- ONLY REGISTERED AND ACTIVATED USERS CAN SEE ALL LINKS - CLICK HERE TO REGISTER

Curb Zone

 

Michael

I have been wondering about this. I personally like Blue-ray because I believe, based on something I read a while ago, it holds more information. Nevertheless, this is going to turn out ugly since they are adamently only releasing certain movies in certain formats.

BMW Power

I have been following this 'format war' for quite some time and I am glad to say that it seems like the war is almost over. With Blu Ray now having the favourable 4 studios under its belt, its just a matter of time before blu ray becomes the true successor of our time.

Sony should be thanking their lucky stars as IMO this will be a boost for the PS3's disappointing sales. Lotsa ppl are now going to purchase the PS3 since its the cheapest blu ray player currently availalble on the market.

Centurion

I'm in the HD-DVD camp and I hope that non of the supporting studios change their minds and jump on the Bluray wagon.

As it is not it seem like Sony is for the first time ever, winning a format war. Hello root-kit!!

Michael

I see. Thank you for tha graph. It shows that BB is on top. Nice.

Mikael

Blu-ray has its flaws too (mainly region coding, unfinished specifications + many features that are mandatory in HD-DVD are optional in Blu-ray) but it's good for the consumers and the industry if we get a single standard and right now it looks like Blu-ray should be it.



This is the latest rumor:



Posted Jan 7th 2008 10:29PM
by Richard Lawler

The Financial Times is reporting that Paramount is preparing to use a get out clause in its HD DVD exclusivity deal, and go back to Blu-ray, about 4 months after ending its dual-format release schedule. The move would be a result of Warner's switch to Blu-ray, using a "get out" clause in Paramount's promotional agreement with the HD DVD camp. No details on what it might take to rip up the contract and make Michael Bay very, very happy, but if the rumor proves true this could make the slow death he predicted for HD DVD a very, very fast one.


Source: - ONLY REGISTERED AND ACTIVATED USERS CAN SEE ALL LINKS - CLICK HERE TO REGISTER

BMW Power

thought this was amusing, considering there is a slightly similar "format war" going on.

betamax vs vhs, net postings from 1984
- ONLY REGISTERED AND ACTIVATED USERS CAN SEE ALL LINKS - CLICK HERE TO REGISTER
- ONLY REGISTERED AND ACTIVATED USERS CAN SEE ALL LINKS - CLICK HERE TO REGISTER

lol,remember the goold old days how the VCR tapes wouldn't rewind themselves? You bought a separate device to rewind?

and the video store would have a big sticker on all the tapes saying :
"please be kind and rewind"


damn life moves by fast!

Centurion

All rumors. Paramount have stated that at the moment their duty is to support HD-DVD.

The Artist

HD DVD is gay like a little cho cho train

Mikael

Yeah, the Paramount spokesman denied it. I saw the news yesterday but was too lazy to post it at the moment. However the exclusivity deal Paramount has with the HD DVD camp will end in February 2009 so just over a year from now. If there indeed is a clause in the deal that allows Paramount to retreat I wouldn't be surprised if they used it. Universal has been quiet for some time and I don't think there is much that prevents them from jumping on the Blu-ray bandwagon. I see some bad clouds over HD DVD right now...


LMAO

Curb Zone