Can Paramount back out their 18 month HD-DVD contract?

[metalore]

Who are they obligated to if they break the contract? What if everyone else goes Blu-Ray?

[bigkurz]

That's the [150] million dollar question. I doubt a company would enter into a contract without some sort of "out clause," but who knows? I think we'll find out more in the next few days.

[181]

There has to be an escape clause in their contract. Otherwise the legal counsel of Paramount is an idiot.

[Stinkin Mushroom]

Originally Posted by 181

There has to be an escape clause in their contract. Otherwise the legal counsel of Paramount is an idiot.

he was an idiot by taking the 150 million anyway

[Bullseye]

Originally Posted by Stinkin Mushroom

he was an idiot by taking the 150 million anyway

Actually it was a great deal for them if there is a get out clause.

[quetzalcoatl]

Originally Posted by Stinkin Mushroom

he was an idiot by taking the 150 million anyway

Not sure how you figure that. Since as of right now there are only 9 movies that have sold over 100K copies in both formats. I did not like the move either but if was sound from a business standpoint. In order for them to loose money on it they would have to sell almost 14K discs a day at $30 over the course of 18 months. Or 5 mil movies.
Has there even been 2 mil sold since inception? I doubt it.

[Corrupteddragon]

No one but Paramount really knows. Who knows if there is a clause, and if there is what it was. It could have been revenue projections to be met, or could be if other studios go BD exclusive they could leave, meaning they dont want to be the only studio doing HD DVD. Time will tell. But at the very least, 2009 will see Paramount BD.

[jorg]

yes the contract is to back hd dvd exlclusivly

[Clark Kent]

Every contract of this size and importance has out clauses. That is a fact. The real question is what are the conditions in the contract that would allow Paramount to break it. The real killer for Paramount is Q4 of 2008. Can they go through that period without releasing one Blu-ray? By then HD DVD will be dead at retail and Blu-ray will have a massive userbase. I'm sure if Paramount has done their due diligence they have a strategy in mind for this contingency.

[GTsmokeya]

Here's a question skip para for a sec, what about univ? What would it take for them to switch to blu?

GTsmokeya

ps. sorry if it was talked about already, I didnt see it.

[JTK]

Originally Posted by nyg

Even if they can't get out of their contract, which I doubt is the case, we've got what 13 months left till they are free to release on Blu-ray? That's not so long that we can't wait it out. They haven't really released a lot of HDM anyway.

I don't think we're waiting 13 months for out clauses and such to come into effect via an obvious domino effect.

[Drewza89]

I think Paramount will be stubborn about their situation. I think they will stay with HD DUD until the contract is up.

[Eddie who?]

Originally Posted by Bullseye

Actually it was a great deal for them if there is a get out clause.

Unless the 'Opt-out clause' involves the re-payment of all funds given for the exclusive announcement.

[WickyWoo]

I think Paramount will be stubborn about their situation. I think they will stay with HD DUD until the contract is up.

I think with every passing day they don't surrender past the earliest exit point (which the BD camp has undoutedly found out), the punishment for their treachery will get worse