Studio presidents "look ahead to 2008"

[Grubert]

Source: Home Media Magazine special issue

Some nuggets:

Bob Chapek, Disney
"Our year-end numbers show that studios, retailers, manufacturers and consumers are committed to Blu-ray Disc and its superior technological advancements."

Mike Dunn, Fox
"Every indicator [is] favoring Blu-ray's inevitable success."
"Some of the blowout pricing seen by the other format appears to have been counterproductive, as software sales showed no dramatic increase."
"Blu-ray is 'future proof' technology with the capacity to grow and evolve, rather than the one that faces near-term obsolescence."
"In some parts of the world the software sales ratios are as high as 10-to-1 in favor of Blu-ray."

Steve Beeks, Lionsgate
"We are very confident that 2008 will be, if not a breakout year, then a solid year for Blu-ray."

Steve Einhorn, New Line
"Dueling formats have restrained our ability to launch large-scale, industry wide marketing initiatives"

Kelley Avery, Paramount
"HD DVD has done a nice job of creating an attractive and affordable value proposition and makes a lot of sense for our audience."

David Bishop, Sony
"The installed base is expected to more than double [in 2008]."
"As the format war dissipates, consumer interest in Blu-ray will be spurred to coincide with the increased demand for high-definition entertainment."
"Even in the weeks with the most compelling HD DVD offerings, Blu-ray has continued to win the software battle between the competing formats, going back to December 2006. This continuing 2-to-1 sales ratio leaves little doubt that Blu-ray will win the war in the end."

Craig Kornblau, Universal
"Pricing is critical, which HD DVD is achieving with sub-$199 players."
"HD DVD is cheaper to make, offers a combo disc option for consumers and has fewer compatibility issues than other formats."
"The HD DVD companies continue to stand behind our value proposition, which offers consumers a compelling and consistent high-def experience at the most affordable price."

Ron Sanders, Warner
"Unfortunately, the dueling formats created an information logjam in what should have been our conversation with consumers."

[little_boy_blu]

Interesting quotes.. what are thier sources?

[Bullseye]

Originally Posted by Grubert

Ron Sanders, Warner
"Unfortunately, the dueling formats created an information logjam in what should have been our conversation with consumers."

Interesting comment.

[Pilam69]

Originally Posted by little_boy_blu

Interesting quotes.. what are thier sources?

Holy crap, source is noted (and hyperlinked) at the top. Wow.

[little_boy_blu]

Originally Posted by Pilam69

Holy crap, source is noted (and hyperlinked) at the top. Wow.

Missed it. Thanks for politely pointing that out.

[Seretur]

And I just read this, thanks to your link in the sales sticky.

I dunno, I didn't DARE expect the outlook to be so Blu. First of all, Paramount seemed reluctant to trumpet HD DVD at all, whereas all the Blu-ray studio chiefs were very bullish about the format. Secondly, they didn't mention any of their catalog releases coming to HD DVD, whereas all the Blu-ray studio chiefs did just that. Is it me, or do P/DW really just go through the motions of their contract, not truly committing to the format beyond the recent releases, which were probably stipulated anyway.

Kornblau kept tooting the cheapo horn, but noone seemed to listen.

And there's a palpable sense that everyone wants the war to end and one format to emerge. Even in the editorial, you can feel it.

Lovely.

[hc666]

Good post. Thanks for sharing!!!

[JAGUAR1977]

LOl, Blu-ray studios sound extremely confident.

HD-DVD studios say ho, hum, it's.............ok, at least we're CHEAP, which is increasingly irrelevant.

Warner/New Line, we're going exclusive SOON.

[Elandyll]

I just had to post a translation, because the Paramount and Universal quotes make little sense...

*Kelley Avery, Paramount
"HD DVD has done a nice job of creating an attractive and affordable value proposition and makes a lot of sense for our audience."

Translation: We think our Audience is mostly made of Xbox users. At least, That's what Bill Gates told us.

*Craig Kornblau, Universal
"Pricing is critical, which HD DVD is achieving with sub-$199 players."
"HD DVD is cheaper to make, offers a combo disc option for consumers and has fewer compatibility issues than other formats."
"The HD DVD companies continue to stand behind our value proposition, which offers consumers a compelling and consistent high-def experience at the most affordable price."

Translation: Pricing is critical, which is why we hear that the Samsung and Sony players have sold out at many places at $299 while Walmarts still have A2's in many places, and the PS3 40Gb is selling faster than the Xbox. This being said the HD DVD companies continue to stand behind .. erm, scratch that (an assitant scratches the name "Onkyo").. our value proposition (loud noise from the back with a Venturer salesperson asking nervously to a Toshiba Rep why their players are priced so low that they can't get in the US market) which offers consumers a compelling (an assitant hides quickly the software sales charts showing 52 weeks of Blu Ray domination) and consistent high def experience (Computer: "You've got Mail!" - he looks, oh just another guy who is upset he has problem with Bourne. Only 20% though), at the most affordable price. What? What do you mean you can find 1080p Blu Ray players at $249?

[Innerloop]

Interesting quotes, if these each represent the most enthusiastic soundbites from each.

It seems that the BD studios are generally all uniformly predicting a "Win" whereas all the HD studios are standing on is the "value" and "cost" issues. Not exactly the most enthusiastic quotes, especially from Warner.

It was interesting to see how the HMM adverts all similarly toed the company line.

[Shin-Ra]

Kelley Avery, Paramount
"HD DVD has done a nice job of creating an attractive and affordable value proposition and makes a lot of sense for our audience."

I bet the 'proposition' was 'attractive' and 'affordable'.

[sj001]

The Blu studios, especially the outspoken ones, like Mike Dunn of Fox are EXTREMELY bullish.

The HD-DVD ones, are kind of wishy-washy... and New Line and Warner DEFINITELY again sounded like they are going to abandon a format, by the tone, most likely HD-DVD.


It's funny too, Bob Chapek of Disney even quotes Michael Bay, with his line, "As a director, my critical eye is that Blu-ray is where the money is." Gotta love that.

[Blu-Light]

Originally Posted by Grubert

Source: Home Media Magazine special issue

Ron Sanders, Warner
"Unfortunately, the dueling formats created an information rdjam in what should have been our conversation with consumers."

[JohnGalt]

Originally Posted by Innerloop

Not exactly the most enthusiastic quotes, especially from Warner.

True but the quote from Warner is the most interesting of all in that it illustrates a clear recognition that the split between two high def optical formats is impacting their ability to bring the new revenue stream online as quickly as they'd like. Consider that in the context of their alleged upcoming decision between the two competing formats which will see them either: 1. guarantee an indefinite stalemate; or 2. bring a relatively quick end to the contest.

[Marcusarilius]

Originally Posted by Grubert

Kelley Avery, Paramount
"HD DVD has done a nice job of creating an attractive and affordable value proposition and makes a lot of sense for our audience." Craig Kornblau, Universal
"Pricing is critical, which HD DVD is achieving with sub-$199 players."
"HD DVD is cheaper to make, offers a combo disc option for consumers and has fewer compatibility issues than other formats."
"The HD DVD companies continue to stand behind our value proposition, which offers consumers a compelling and consistent high-def experience at the most affordable price."

Funny how both Paramount and Universal are reading from the same mindless script. Almost quoting each other's "successful" View and business plan for HD DVD. Only one problem. None of it is turing out to be true no matter how cheap they go. By the way, why is a studio commenting on Players in the first place? As though it had somethiing to do with increased sales of HD DVD disks and the format they support. Truley as sad commentary that they are still living in a land of self delusion.

[STI Jaguar]

A really weak commentary by Paramount and Universal. Both them of them should have said- we were both bought off and are now paying the price. A warning to Warner not to make the same mistake.

[Tulsa]

That was certainly pathetic ponderings for the red camp.

What's the slogan for red?

"Come buy our cheap shit, it's umm, really cheap!"

Great sales pitch, red!

[Esox50]

Here's what the HD DVD j*rk*ffs would take from those comments...
"The Lion's Gate guy hedges by saying it could only be a 'solid' year rather than a 'breakout' year. Therefore, they are going neutral at CES."

[Jim L]

Originally Posted by sj001

The HD-DVD ones, are kind of wishy-washy... and New Line and Warner DEFINITELY again sounded like they are going to abandon a format, by the tone, most likely HD-DVD.

Both Warner and New Line are complaining about the "dueling formats" and the "logjam", which they are a part of.

If they sincerely want to resolve the situation, there are 3 things they could do:

1. Stay neutral
2. Go HD DVD exclusive
3. Go Blu-ray exclusive

• Option 1 continues the current state of affairs
• Option 2 solifies the standoff with an almost 50-50 split of studio output.
• Option 3 give Blu-ray an overwhelming advantage of around 3-to-1 in studio output and would hasten the rapid decline of HD DVD amongst consumers and retailers. At the same time, the public perception of Blu-ray would be as the winner and successor of DVD. At that point Blu-ray would experience tremendous growth in consumer support.

When you look at what Warner/New Line really want, the choice for them is clear as it is to many of us.

[Scrapanatchi]

Warner also had an ad for suporting both, saying that others should join them