Apparently, Paramount reserved the right to switch back to Blu-ray

[Seretur]

Oh, Penton's here! Great!

...and also sad. For him. Mansion, yo.

[darinp2]

Originally Posted by Whytewash

I find it hard to believe that there ISNT an escape clause...

I would think that if they were to go back to neutrality, they would have to "reimburse" toshiba and microsoft for some of the bribe money provided.

Not if Toshiba is the one who asks to get out of the contract. Just imagine if Toshiba is still obligated for 40% of the total figure. Why would Toshiba want to pay that if they see that it will just be money down the drain? Paramount/Dreamworks were likely worth what Toshiba was paying when it gave them a chance of winning or tying this war, but now with the odds so bad against HD DVD even with the contract, the money remaining to be paid/spent probably wouldn't be a good investment.

Also, there may be a clause that Paramount/Dreamworks can get out if sales don't meet certain figures and not have to pay anything up to that point back. If player sales are part of that, then how is Toshiba even going to get to reasonable HD DVD player sales over the next few months, when they couldn't do better than they did with Warner and New Line neutral? Unless they just close their players out at giveaway prices, in which case continuing to pay Paramount and Dreamworks likely wouldn't make business sense.

Anybody think Costco will be willing to continue to carry HD DVD players, with their great return policy, unless Toshiba or somebody else agrees to compensate them for any returns? Maybe at prices so low that people won't return them even if content stops flowing, but otherwise I think Costco will be smart enough to no longer give Toshiba a good outlet for selling their players.

IMO, Toshiba should be able to see the dominos falling and unless they are trying to save personal face, should do what makes the most business sense, stopping the money bleeding of pushing HD DVD.

--Darin

[GregBlu5]

Originally Posted by sj001

Glad to hear this, I hope they BOTH jump very soon! What will Toshiba say then?

Actually, that would be the absolute best way for Toshiba to save face. If all their studios have abandoned them, gee, you know, it's not really their fault that they are forced by circumstance to pull the plug on their format.

-Greg

[Whytewash]

Originally Posted by The Don

actually...contrary to my previous post...I swore Penton hinted at something like this...

at least that's the way I interpreted the riddle

I just find it funny that the clause has never been mentioned until now..

Penton is pretty good about putting riddles in his posts...


Didnt he mention a UNIVERSAL riddle at some point? I thought he did. Anyone got a link to that one?

[RV4BLU]

Originally Posted by Solidus

The faster the better, bring on Transformers on Blu Ray

Second that.

[The Don]

Originally Posted by Whytewash

Penton is pretty good about putting riddles in his posts...


Didnt he mention a UNIVERSAL riddle at some point? I thought he did. Anyone got a link to that one?

I think he did twice...

some people didn't really get it, but I thought it was one of his easier riddles...

that is......if he was referring to Universal.....but I am 99.9% sure he was.....it's that .1% that is always there...

I think that if Uni ends up supporting both formats...this would be enough for Paramount to ditch the red team or at least go back to the way things were...

[dragons lair]

Originally Posted by NutsAboutPS3

No it isn't, our insider Max has already told us there are out clauses. We already knew Paramount has reserved the right to switch back, however what we don't know is what conditions will permit them to exercise an out clause. What we do know (again, because Max told us) is that Warner switching to Blu-ray exclusive does NOT in itself trigger any of the out clauses.

Maybe they would not want to switch back, they will have to decide it is worth it to give up $150 million ( pro-rated of course) to switch back to BR, I know we all love BR here, but there is no way Paramount is going to make anywhere near that money this year in selling BR discs.

Also, if they ( and Universal) are looking for a big payday to switch to BR, I am not so sure they would get it, while Warner had the upper hand, Paramount and Universal has no hand because the BR Group knows they have the advantage.

The best thing to happen is that Toshiba would give up, leaving Paramount and Universal out in the cold so they have no where else to go.

Also, what about the big deal with Microsoft, the $500 million download deal they just signed, wonder how that matters, if at all.

[clownface]

Very interesting. If Paramount has a clause to return to Blu ray I wonder how long it would take for them to switch back. Also I wonder how deep Universal's commitment go for HD DVD?

[The Don]

Originally Posted by clownface

Also I wonder how deep Universal's commitment go for HD DVD?

considering how quiet they've been...

probably not as strong as it was 6 months ago....

actually...scratch out the "probably"...I don't see how it is anywhere near as supportive as it was...

[Clark Kent]

It's very likely that Paramount's escape clauses are tied to Universal's status. Even Toshiba knew that there was a possibility that Warner would go Blu-ray at one point. But going off the public reaction of the HD DVD PRG its apparent they really thought Warner would stay neutral at the very worst for the coming year.

[Li'l Nicky]

Originally Posted by vladittude0583

I personally think its amusing that Paramount is pissed off about the WB decision if this is the case

If the payment by the BDA is true. I'd be very jealous of Warner if I were Paramount. "Oh shit, we shoulda told the BDA before picking DUD".

[The Don]

Originally Posted by Li'l Nicky

If the payment by the BDA is true. I'd be very jealous of Warner if I were Paramount. "Oh shit, we shoulda told the BDA before picking DUD".

there wasn't a payoff, though

[Anthony P]

this is the only time anyone has mentioned an out clause for Paramount.

not at all.

[Li'l Nicky]

Originally Posted by The Don

there wasn't a payoff, though

Then good. lol

[mgonzo2u]

Originally Posted by Verbal

I wouldn't put too much stock in this article...this is the only time anyone has mentioned an out clause for Paramount. I find it strange that FT would know something no one else does...consumer electronics is not their game.

FT is respected by me.

I will assume they did actual research with counter checks to go on record with such commentary.

[GarettP]

I will gladly purchase Transformers, Gladiator, and Braveheart as long as all of them have a PCM Track!

[Geech]

this weekend is the best in awhile!!!!!

[toocheezy]

Originally Posted by Geech

this weekend is the best in awhile!!!!!

+1

[frenchglen]

Originally Posted by sj001

Glad to hear this, I hope they BOTH jump very soon! What will Toshiba say then?

"Bill? It's over. where's my money like you promised?

Bill?

BILL!

[sobs...]

[cartman781]

Originally Posted by Geech

this weekend is the best in awhile!!!!!

Originally Posted by toocheezy

+1

+2