Universal and Paramount's contract end date?

[Maxell]

Yeah I too think Universal will be the last one to jump off the hddvd ship. They seem to be their most loyal supporter.

[blindcat87]

I basically agree with you, except for the comparison to LD. LD did not go out with a whimper after a fight with DVD. LD faded out like any older format that hs become obsolete, but it had a long distinguished run. HD DVD is going to go out with a real whimper like DIVX. Still remember the white flag being posted on their official web page. That was one beautiful day. Also like DIVX's Dick Sharp, I think Ken Graffio and others will sail away on golden parachutes.. They'll need them because I think they will need to find another industry to get a job in.

I'm fine with these two coming to the dance last. If they are forced to come, hat in hand, begging enterance to the party, it puts the BDA in a good position to dictate terms. I would love to see a no low bitrate, skimped audio ports and no over edge enhanced, DNR crayoned over transfers embarrasing the format.

One more thought that has occured to me while pondering the most recent rumblings. WB is still the lynchpin, but if the retaillers are really so sick of this and decide to revolt, WB might not want to draw things out. Their weight might be lessened if major retaillers decide on their own to dump HD DVD. WB better make the most of their current importance before others steal their thunder. Just one point of view, but something to think about.

Chris

Originally Posted by 2blu2

It is all about Warner.

I think neither studio will move unless Warner moves.

It allows them to "save face". If warner moves and sales become more lopsided (80:20 consistantly) they can say "we tried HD DVD but consumers have spoken and we are now supporting Blu".

IHMO Warner is the key player in this war. If they go Blu, HD DVD will die. It will not be overnight but you will see all reds go neutral, stores stop stocking HD DVD, no new players announced. It will not be a bang rather a whimper like laser disc did.

It just seems strange to me that Warner hasn't announced anything yet and are speaking at HD DVD event during CES. If Warner doesn't go Blu I see this war lasting a long time (Christmas 08).

[2blu2]

Originally Posted by blindcat87

One more thought that has occured to me while pondering the most recent rumblings. WB is still the lynchpin, but if the retaillers are really so sick of this and decide to revolt, WB might not want to draw things out. Their weight might be lessened if major retaillers decide on their own to dump HD DVD. WB better make the most of their current importance before others steal their thunder. Just one point of view, but something to think about.

Chris

True. I think that makes sense also. It is a complicated game with various checks & balances. No position is perfectly protected but I do think Warner managed to maneuver themselves into the best spot. They are now extremely valuable and made the most money selling to both formats. If the drop red they will be able to double dip many of those red buyers with blu versions again. Not to mention the pent up demand from the blu side for big hitters like Matrix, V for Vendetta, Batman, etc.

Of course retailers usually consult with their partners before a big move. Most retailers would not want to risk upsetting a supplier of a product that basically sells itself. "Sorry you didn't get your shipment of Ironman Best Buy. All the other retailers got theirs. Of course this has nothing to do with you dropping HD DVD before we were ready to go blu. Just a coincidence your shipment was misrouted. Too bad it is estimated to bring in $5 million on it's first week. I am sure we can get you a shipment in time for next week. You will consult with us on any future changes to our product lineup right?" About the only retailer I think who has the balls to tell the studios how it will be is Walmart.

[Zyclone]

i think warner will be a big blow but i don't see HD DVD going over night , universal seem pretty tight with toshiba and i think they will be releasing on HD DVD to the bitter end.

[MOONPHASE]

bring matrix, batman begins and the dark knight on blu then wb will be going to blu because most people who want those movies have blu-ray players not hd-dvd players but i hear the video transfer on the matrix sucked but then again i believe it has their famous crappy VC-1 video encoding so which means on blu the only thing they can improve is the audio since hd-dvd is ruining us on the wb movies

[Need0fMany]

Originally Posted by jason_grumpy

...
Universal claims they no longer have an HD-DVD contract. These are the ones that I would be most concerned about for hold outs. They are voluntarily supporting HD-DVD and are one of the most outspoken supporters of it. They do not say anything negative about it, and are one of the main figureheads spearheading the HD-DVD cause......

Universal does not need a contract, politics binds them. Universal own NBC, MSNBC is a partnership of Microsoft and NBC. That's just one of the many examples. They have a lot of "relations", there is also GE as common link. See quotes below, interesting when you pay attention to the TV and printed media involved.

Universal I fear will be the very last studio to start supporting Blu-ray. Just my opinion; I'm not an insider, just an observer.


From: http://www.nbcuni.com/About_NBC_Univ...pany_Overview/

"NBC Universal is one of the world's leading media and entertainment companies in the development, production, and marketing of entertainment, news, and information to a global audience. Formed in May 2004 through the combining of NBC and Vivendi Universal Entertainment, NBC Universal owns and operates a valuable portfolio of news and entertainment networks, a premier motion picture company, significant television production operations, a leading television stations group, and world-renowned theme parks. NBC Universal is 80% owned by General Electric and 20% owned by Vivendi."


From: http://en.wikipedia.org/wiki/MSNBC

"MSNBC is a 24-hour cable news channel in the United States and Canada. Its name is a combination of Microsoft Network and NBC.

A separate company, msnbc.com, is the news website for the NBC News family, featuring original stories and video as well as content from NBC News and partners[citation needed] such as The New York Times, Newsweek and The Washington Post.

Two partnerships with the name MSNBC were founded in 1996 by Microsoft and General Electric's NBC unit, which is now NBC Universal. Although Microsoft and NBC shared operations of MSNBC cable at its founding, it was announced on December 23, 2005 that NBC Universal would purchase a majority stake in the television network, which left Microsoft with 18%. The two companies remain 50-50 partners in msnbc.com."

[Polyh3dron]

Bingo, it's all about GE's relationship with Microsoft.

[blindcat87]

Actually, that scenario is not really likely particularly with big retaillers like BB and Wal-Mart. As proud of their properties as any studio may be they all know that no matter the value of their product, they are just one set of SKUs in a vast sea. Moves like that would have far too many potential backfires for studios than retaillers. They might take the risk of punishing a smaller retailler that way, but it doesn't work for those that account for large percentages of the entire market's sales. Too much chance of something like "Don't worry about it, this or that BDA studio stepped in to fill in the gap. They thank you for the extra shelf space. Good luck pushing those titles yourselves."

Even if not for the range of pitfalls, it still is not a viable threat in the current situation. While the HDM numbers may have grown enough to be a good indicator of trends and such, they are not large enough to be a signifigant carrot or stick. If you think that studios are going to risk anything that would damage the sliding SD DVD stream any more, think again. Imagine the stockholder meeting. "So, our profits on DVD were already expected to slip by 3% or more this year, and you are messing with shipments to one of our biggest customers in a snit over them having enough of the hassles we forced on them in a market like this?"

As I said, I do think WB has put themselves in a great position, but dragging it out could backfire with retailler impatience, and if the big boys in the retail world get tired of it, there is little in the way of payback that they could dish out that wouldn't hurt them worse or risk giving a competitor an advantage with the people who sell their product. If such tactics had any viability, you think this wouldn't already have been employed upon Target and Blockbuster?

Remember that scene in Blazing Saddles where the sheriff holds himself hostage? Works in a comedy film, in real life, pulling that trigger costs the hostage taker a lot more than anyone else. Again, not saying WB isn't still in the key position. Just that with major retaillers grumbling, it is no longer a blank check with a blank date and they will have to keep that in mind.

Chris

Originally Posted by 2blu2

True. I think that makes sense also. It is a complicated game with various checks & balances. No position is perfectly protected but I do think Warner managed to maneuver themselves into the best spot. They are now extremely valuable and made the most money selling to both formats. If the drop red they will be able to double dip many of those red buyers with blu versions again. Not to mention the pent up demand from the blu side for big hitters like Matrix, V for Vendetta, Batman, etc.

Of course retailers usually consult with their partners before a big move. Most retailers would not want to risk upsetting a supplier of a product that basically sells itself. "Sorry you didn't get your shipment of Ironman Best Buy. All the other retailers got theirs. Of course this has nothing to do with you dropping HD DVD before we were ready to go blu. Just a coincidence your shipment was misrouted. Too bad it is estimated to bring in $5 million on it's first week. I am sure we can get you a shipment in time for next week. You will consult with us on any future changes to our product lineup right?" About the only retailer I think who has the balls to tell the studios how it will be is Walmart.

[CasualCat2001]

I suspect that if Ken Graffeo's and Craig Kornblau's employment contracts were to be terminated, that Universal's red's exclusivity would as well.

With any luck maybe Mr. Immelt will decide he's tired of their crap and help us out soon.

[xvdbx]

[w_tanoto]

paramount's is February 2009
Universal, some said 18 October 2007 (contract ended)