Archived: Insiders Thread

[BluOgre]

Originally Posted by mdm1699

If the blu-ray(or both) format stalls, then it is still a successful campaign for them. It preserves their current revenue stream from DVD.

I forgot to say that current DVD sales has flatened out and actually the sales have been dropping. That's why studios really want a new format because they can have a new revenue stream and DVD at the same time. If you think for a second UNiversal or Paramount are thinking it's ok to stall the format or kill it, you'd be wrong. They want a highdef format so they can make money. That's why I honestly believe next year is the year UNiversal and Warner will jump ship. The new format is too important.

[bdrex28]

Originally Posted by mdm1699

"Only" 397mil? That is a lot of profit. They are a very healthy company thanks to memory business. Makes me wonder how the memory business is still profitable(quietly). Must be some price-fixing going on. Anyway, they can't keep this up for much longer. I think that they are pouring all they have into the Q1 of 2008, then reassess. Blu-ray doesn't have to die from their perspective. If the blu-ray(or both) format stalls, then it is still a successful campaign for them. It preserves their current revenue stream from DVD.

For a company that size, it's not that great.

[dialog_gvf]

Originally Posted by dobyblue

In perspective, Panasonic's profit for the same period was US$672 million.

http://panasonic.co.jp/corp/news/off...061027-2-1.pdf

So, Panasonic could afford losing $340 per player, and handing out $300 million cheques?

Toshiba is a big company with lots of divisions, and I very much doubt the shareholders want one product from one division to suck away the profits. Same for Sony and Microsoft with their game divisions.

[dobyblue]

Originally Posted by dialog_gvf

So, Panasonic could afford losing $340 per player, and handing out $300 million cheques?

Hell no! Me thinks I'd get paid less as a result.

[mdm1699]

Originally Posted by BluOgre

Yeah it's a lot of profit but the point I think was how can they continue to do things like "payoff Paramount for $150 mill" if that is what you call a lot of profit?

It is not 397-150. The 150 just becomes another expense that reduces profit for the next period. Also, we do not know how much cash they have on their BS. It may take them a few periods before they have to reach into their reserves. This is why this is called a war, and not a tiff.

[mdm1699]

Originally Posted by dobyblue

In perspective, Panasonic's profit for the same period was US$672 million.

http://panasonic.co.jp/corp/news/off...061027-2-1.pdf

That adds nothing to the discussion.

[Penton-Man]

Originally Posted by Kris Deering

While I'm not paid I can say that the reason for the DTS-HD MA track was Spielberg. He's still a big proponent of DTS (may even still own a stake in them) and requested it. This is what Paid told me at the BD festival.

Consider yourself worthy.
Only a handful of people at Sony Pictures know paidgeek’s true identity.

I doubt anyone on the internet would know either, if not for the past unethical behavior of an M$ employee.

Of course, that was just another injustice that the moderators at AVS closed their eyes to.

[mdm1699]

Originally Posted by BluOgre

I forgot to say that current DVD sales has flatened out and actually the sales have been dropping. That's why studios really want a new format because they can have a new revenue stream and DVD at the same time. If you think for a second UNiversal or Paramount are thinking it's ok to stall the format or kill it, you'd be wrong. They want a highdef format so they can make money. That's why I honestly believe next year is the year UNiversal and Warner will jump ship. The new format is too important.

There are too many variables that are rarely discussed. Toshiba's revenue stream is from royalties. Studios want a hidef format to compete with digital cable distribution. Also, revenues from dvd has also flattened out because of piracy. It is also about margins. There are just too many variables to focus on format replacement. This is not charity. Profit is indeed the motive, but for the benefit of the companies and not us.

[mdm1699]

Originally Posted by bdrex28

For a company that size, it's not that great.

It is hard to make money in tech these days. The only companies making a profit are companies with a virtual monopoly on the various aspects of the sector. Count the number of companies, then count the ones turning a profit. Toshiba is not doing too shabby. You have to realize that a lot of these profits are also from margins and effeciencies. Do not expect to see HDM at dvd prices.

[dobyblue]

Originally Posted by mdm1699

That adds nothing to the discussion.

Neither does your post here, for what it's worth.

What the ****?

[mdm1699]

Originally Posted by dobyblue

Neither does your post here, for what it's worth.

What the ****?

purrr

[dobyblue]

Originally Posted by mdm1699

It is not 397-150. The 150 just becomes another expense that reduces profit for the next period. Also, we do not know how much cash they have on their BS. It may take them a few periods before they have to reach into their reserves. This is why this is called a war, and not a tiff.

No it's called a massacre.

Matsushita and the Samsung Group dwarf Toshiba.

It if weren't for MS we'd be done by now.

[mdm1699]

Originally Posted by dobyblue

No it's called a massacre.

Matsushita and the Samsung Group dwarf Toshiba.

It if weren't for MS we'd be done by now.

MS or Warner? Don't you think that there are other Toshiba cheeleaders in the dark? Why is there a bigger war in the American market? If Sony and MS switched places who would be winning? Things are never what they appear. In a sea of yes, you should always embrace voices of dissent. It broadens your perspective. I have learned to be emotional about blu-ray from people such as yourself. I have learned to be realistic from others. We all support the format and want it to succeed. What good is dialogue if it isn't constructive?

[Kris Deering]

Originally Posted by Penton-Man

Consider yourself worthy.
Only a handful of people at Sony Pictures know paidgeek’s true identity.

I doubt anyone on the internet would know either, if not for the past unethical behavior of an M$ employee.

Of course, that was just another injustice that the moderators at AVS closed their eyes to.

I guess you missed the festival? Didn't catch you there.

[Josh]

paidgeek,

My full review of CE3K went up on HiHD. Can you tell I really enjoyed it?

[Shadowself]

Originally Posted by mdm1699

"Only" 397mil? That is a lot of profit.

Net income is not the same as profit. Net income could easily be the EBITDA number which, for many public companies, is very different than their post tax profit. It is a significant indicator of the company's health, but it does not tell the whole story.

There are many other ways companies hide income and losses. Perfect examples are Microsoft's use of allocated accounts for IR&D which grow and shrink each quarter to help meet their "net income" projections but not radically exceed them and Apple's use of spreading income for the iPhone over multiple years to keep spikes from iPhone income (both sales and revenue from AT&T) from radically affecting "net income". Both techniques conform to GAAP and both are completely legal, but make it difficult to understand what is really going on.

Sorry to hijack the Insider's Thread for the moment...

Now back to your regularly schedule broadcast.

[glenn22]

Originally Posted by Josh

paidgeek,

My full review of CE3K went up on HiHD. Can you tell I really enjoyed it?

Why a review on HiHD and not on Blu-ray.com Josh?

[shamus]

Originally Posted by Kris Deering

While I'm not paid I can say that the reason for the DTS-HD MA track was Spielberg. He's still a big proponent of DTS (may even still own a stake in them) and requested it. This is what Paid told me at the BD festival.

Makes sense... Wasn't Jurassic Park the first movie to ever use DTS?

[spam.curitiba]

WOW I totally forgot about CE3K was coming out next week. I am really excited about this movie

[mdm1699]

Originally Posted by Shadowself

Net income is not the same as profit. Net income could easily be the EBITDA number which, for many public companies, is very different than their post tax profit. It is a significant indicator of the company's health, but it does not tell the whole story.

There are many other ways companies hide income and losses. Perfect examples are Microsoft's use of allocated accounts for IR&D which grow and shrink each quarter to help meet their "net income" projections but not radically exceed them and Apple's use of spreading income for the iPhone over multiple years to keep spikes from iPhone income (both sales and revenue from AT&T) from radically affecting "net income". Both techniques conform to GAAP and both are completely legal, but make it difficult to understand what is really going on.

Sorry to hijack the Insider's Thread for the moment...

Now back to your regularly schedule broadcast.

You are adding, not taking away. Very good points. I think smoothing numbers is either illegal or unethical. I have never heard anyone question MS's accounting methods. I think that some people are going neutral from Blu, because of unrealistic expectations. I am staying blu. I do not expect HD-DVD to go away in Q4. When do you think that it will become irrelevant as a replacement for dvd? Be honest. I will stay blu, but I think we focus too much on unrealistic timelines.