Archived: Ask the Insiders: Judgment Day Edition

[ottscay]

Originally Posted by JasonS

Maxpower, You've indicated that the "get out of contract" amount is about $50 million.

No, he was pointing out that that (as corroborated in the original press as reports) only $50 million of the $150 was paid to Paramount itself, while $100 was paid to Dreamworks. So if Paramount has to buy itself out of it's contract, it will be some fraction of $50 million, not $150.

That also means that it may be much cheaper for Paramount to get out than it will be for Dreamworks, and with a much smaller catalogue, it may be that Dreamworks won't bother trying (unless they really go to Universal, and then Univeral may have an opinion on the subject, especially if they've recently switched to BD support...).

My question is why Neutral? That would give Blu-ray all but one major studio so who would touch HD DVD with a ten foot pole at that point? Seems like being "Neutral" would kill their HD DVD sales.

The penalty may be smaller to buy out of exclusivity but still support HD DVD, so they wouldn't care about sales but rather not having to pay as much. Also, there may be agreements with Toshiba in other areas, so Viacom may decide that it's not wise to be that completely cold whil exercising an escape clause.

No insider info, just basic business decision-making.

[Azumi]

Originally Posted by Maxpower1987

As I am not personally involved in negotiations this time, I can't give a first hand account, but from what I have heard people within my company are saying "everything is going as expected", which to me and you means well.

Max, thanks very much for your answer (not just mine, but the others you've provided too)!

Cheers,

[elwaylite]

With everything jumping on paramount now and staying quiet on Uni, I have to think somethings going on.

Id have to say Uni is being quiet to see what Para does.

I doubt we'll see Para go 100% BD, maybe announce 50/50 for a certain WB style term.

[jopemoro]

Originally Posted by Azumi

Hi. A question to Maxpower1987:

We're currently in a phase that I would categorize as "almost there but not quite":

The Warner announcement had a tremendous impact and things are truly looking good for Blu-ray on all counts (numbers, perception, retailers, film companies). But at the same time the format war isn't over yet. What is still missing is the final chapter -- and hence this feeling of unification that will pave the way for the consumers at large to invest *with confidence* into Blu-ray.

Aside from the talks that may be talking place now, do you feel that there is a consensus from all the parties involved, to reach a favorable outcome within the next few weeks to clear the road for the general audience?

In short, are the involved companies interested to put the format war behind us once and for all - and the sooner the better, or are there still icebergs ahead that might take longer to circumnavigate?

Remember what Penton-man said (paraphrasing): there would not be a 'final blow' to HD DVD coming out of CES, but a string of good news starting these days would make clear the eventual outcome...

So, me, I'm thinking Warner+BD players at CES is the start, and we may still see some other news shortly, although possibly nothing like the Warner announcement...

[stockstar1138]

this is all starting to come together.

remember when sony or the bda said that they were sure Paramount would be back. sounded cocky at the time, but now it makes perfect sense.

ill give it til the end of CES, certainly they would like to make a splash.

[zMadMonk]

Max,

I've got to give you props, man. I don't post at AVS (longtime lurker there - just like I was a long term lurker HERE, until I recently signed up).

Anyway, you really do play it cool. I don't think that I could respond to some of those inbred f**k-knuckles with as much dignity and grace. (Obviously not, as I use terms that aren't very graceful in this very post...)

I think that BOTH forums benefit not only from the wealth of information that you bring, but from your over-all presence and demeanor.

So, thank you. (The same thanks go out to ALL of our insiders here.)

[WickyWoo]

So you're saying it was burnt on a BD-R50?

I think it was a bandwidth issue. Long movie+Lossless+7GB extras=full disc

[elwaylite]

Originally Posted by jopemoro

Remember what Penton-man said (paraphrasing): there would not be a 'final blow' to HD DVD coming out of CES, but a string of good news starting these days would make clear the eventual outcome...

So, me, I'm thinking Warner+BD players at CES is the start, and we may still see some other news shortly, although possibly nothing like the Warner announcement...

This is true, BUT I dont think anyone quite knew how Para and Uni would act once WB made their pick. That is what we are about to see now.

[richteer]

Originally Posted by eat_me_cool

Before we get excited at Paramount, didn't MAX say that their get-out clause would NOT be invoked even if Universal or Warner went exclusive?

Which suggests that Paramount would have to buy themselves out of the contract.

Not likely to happen soon.

Max said that Para***** can't get out of their contract if Warner or Universal went Blu-exclusive. He said nothing about what Para***** could do if both Warner and Universal went Blu...

[CptGreedle]

Wow.. I have finally caught up on the insiders forum...
So informative. I am just jumping with joy in my seat here...
I have to send out a HUGE "Thank you" to all our Insiders

*ahem*
THANK YOU!


On a different note, I was wondering that since WB announced Blu-exclusivity before CES, if there are to be any other major changes, either in studio loyalty or retailer support, when would be a likely time we would hear such news?
Obviously not everything will happen at CES. Penton said there would be no death strike to HD DVD at CES, but looking at the WB news, if anything else major happens like that, I think it could be a death strike.

[CptGreedle]

Originally Posted by Maxpower1987

I'll clarify this now before it gets out of hand.

These two single events were not part of the agreement, but other events were included and when put together it has activated a release clause.

Did you just say "it has activated a release clause?"

[Spankey]

Originally Posted by Maxpower1987

but other events were included and when put together it has activated a release clause.

I'll take this as meaning the clause has in fact been triggered.

Just my assumptions...Warner going Blu, Sales figures for year, etc.

[degas]

Originally Posted by Maxpower1987

I'll clarify this now before it gets out of hand.

These two single events were not part of the agreement, but other events were included and when put together it has activated a release clause.

...exxxcellent....

[elwaylite]

You guys werent supposed to notice that!

[BPHusker]

Originally Posted by Spankey

I'll take this as meaning the clause has in fact been triggered.

Just my assumptions...Warner going Blu, Sales figures for year, etc.

I wonder if this is the case, when we will hear anything about them going neutral.

[The Don]

from the sounds of things...

saying that the warner move wouldn't trigger a release clause...and now it does...

I wonder if there was some sort of deadline and Max just didn't expect things to get wrapped up so fast...

I could be way off...and probably am...

unless it was a couple of things that triggered the clause....

like..say...Paramount being the last major studio left?

I could be way off again....but yeah...

[Texitura]

Originally Posted by CptGreedle

Did you just say "it has activated a release clause?"

If Max was trying to to prevent things getting out of hand, this won't help.

[Spankey]

Originally Posted by elwaylite

You guys werent supposed to notice that!

Unlike other forums, we value reading comprehension.

[The Don]

Originally Posted by elwaylite

With everything jumping on paramount now and staying quiet on Uni, I have to think somethings going on.

Id have to say Uni is being quiet to see what Para does.

I doubt we'll see Para go 100% BD, maybe announce 50/50 for a certain WB style term.

I personally think that Uni is within 30 days of going Blu....and shortly after Paramount will come...

silence is golden....and that's what Uni has given.....

nothing..

[The Don]

Originally Posted by Spankey

Unlike other forums, we value reading comprehension.

I really wish it wasn't noticed...

I didn't want to respond to it after I read it because I wondered if he meant to word it like that and I wanted to leave it alone ahah...