What if? (re:Paramount)

[zipbags]

If Warner went blu exclusive at CES. Would this be enough to make Paramount go back to format neutral? Also, nobody seems to know the exact wording regarding the Paramount HD-Dvd exclusive deal. Since Paramount is a publicly traded company. Wouldn't such a deal have to be made public?

Thanks!

[nails]

Originally Posted by zipbags

If Warner went blu exclusive at CES. Would this be enough to make Paramount go back to format neutral? Also, nobody seems to know the exact wording regarding the Paramount HD-Dvd exclusive deal. Since Paramount is a publicly traded company. Wouldn't such a deal have to be made public?

Thanks!

They couldn't anyway because they are under contract for the full 18 months. HD-DVD would have to completely die, and Toshiba rip up the contract before that would happen.

[Go Blu]

and as you know from Mr. Bays recent comments Micro$oft will not let that happen.

They would buy 90,000 A3's and 50 million worth of DUD movies for all of their employees before they let that happen.

[CptGreedle]

I don't think the contract is available for public display.

I think that WB is not enough to make them go neutral against their contract, however Universal, if I am not mistaken, is nearing the end of their contract and I am sure they do not want to keep looking at only 1/3 of the sales they should be making on their titles. If/When WB goes Blu-exclusive, Universal will surely follow suit shortly after. It is then that Paramount will be unable to hold up an entire format by itself, with its limited HD library.

I think that Paramount would probably go neutral again after the end of the 18 months anyways since it does mean they are loosing 2/3 of their potential sales.

[zipbags]

I keep reading that 18 month contract. I have heard lots of people on both sides say the deal length was never confirmed. Also, I find it hard to believe Paramount wouldn't give themselves an out.

Also, when is Universal's contract end? And is their any legit rumblings that they would go nuetral?

[Go Blu]

I'm sure there is an out clause in there no one in the right mind wouldn't give themselves one. However I don't think Microsoft or Toshiba will allow it to reach such a threshold.

[tiger roach]

If Warner were to go blu-exclusive at CES, HD-DVD could be in a sorry state by the time the Paramount contract expires.

Wouldn't that be awful?

[Alan Gordon]

It's been said that there are "loopholes" in the P/DW deal. What those loopholes are remains to be seen.

Could it be that HD DVD has to stay above a certain ratio for Paramount/DreamWorks to stay with HD DVD? I couldn't see Blu-ray having a 9/1 ratio and Paramount still releasing exclusively to HD DVD.

Could it be that Paramount's exclusivity is dependent on Universal and WB's HD DVD support?

Could it be that Paramount/DreamWorks can buy off their contract should Blu-ray starts a decisive victory?

It'd be interesting know.

~Alan

[zipbags]

Originally Posted by Alan Gordon

Could it be that Paramount/DreamWorks can buy off their contract should Blu-ray starts a decisive victory?

It'd be interesting know.

~Alan

I am sure Paramount did not receive the 100 million incentive in one shot. They may get it spread out. So if the contract is 18 months and at 9 months they break it off. They may not have to "buy off" Toshiba. Since they may have only gotten 50 million of the 100 million.

Also, I really am surprised that they weren't made to release the specifics of the deal. If I was a shareholder of either Paramount or Toshiba. I would like to know the info. I would think their would be some kind of disclosure rule from the SEC (Securities & Exchange Commission).

[Idealsupra]

the next question to be asked is:

Will paramount/universal/ etc go back and RE-release all of the titles that we are missing out on on HDDVD... onto Bluray? Like transformers and the bournes, and then all the catalog titles?

[haushausman]

I am almost glad Paramounts has to see huge profits slip through their hands for 18 months. Too bad once they do go Blu we're going to gobble every release up and make them all their money back.

[Sonny]

Originally Posted by CptGreedle

I don't think the contract is available for public display.

I think that WB is not enough to make them go neutral against their contract, however Universal, if I am not mistaken, is nearing the end of their contract and I am sure they do not want to keep looking at only 1/3 of the sales they should be making on their titles. If/When WB goes Blu-exclusive, Universal will surely follow suit shortly after. It is then that Paramount will be unable to hold up an entire format by itself, with its limited HD library.

I think that Paramount would probably go neutral again after the end of the 18 months anyways since it does mean they are loosing 2/3 of their potential sales.

That sure sounds nice (about Uni ) they would get on the Blu train but that's probably going Tobe the hardest nut to crack, from everything that has been said from there people. I want them Blu the most

[jorg]

Originally Posted by haushausman

I am almost glad Paramounts has to see huge profits slip through their hands for 18 months. Too bad once they do go Blu we're going to gobble every release up and make them all their money back.

lol yes i think same way and to think paramount only thought heyed make 150 million in profits over 18 months (they would of made almost 50 on transformers alone lmao)

[reiella]

Near as we know, the status of other studios has no bearing on the exclusivity contract.

I suspect their outs, are of a different nature.

[Alan Gordon]

Originally Posted by reiella

Near as we know, the status of other studios has no bearing on the exclusivity contract.

So... let's say that Warner Bros. goes exclusive to Blu-ray, as does Universal (I know the chances of this happening in the next few months are mind-boggling, but humor me). DreamWorks and Paramount are just going to be the sole (big name) studios releasing to HD DVD?

If I were Paramount/DreamWorks, I would want a clause in my contract that would leave me an out should I become the lone wolf.

Originally Posted by reiella

I suspect their outs, are of a different nature.

I named some examples I could think of, what are some examples you can think of?

~Alan

[reiella]

Originally Posted by Alan Gordon

So... let's say that Warner Bros. goes exclusive to Blu-ray, as does Universal (I know the chances of this happening in the next few months are mind-boggling, but humor me). DreamWorks and Paramount are just going to be the sole (big name) studios releasing to HD DVD?

If I were Paramount/DreamWorks, I would want a clause in my contract that would leave me an out should I become the lone wolf.



I named some examples I could think of, what are some examples you can think of?

~Alan

Off hand, more like, Production Facilities are unable to produce #s necessary. Failure rate at said production facilities exceeds certain thresholds, etc.

Having a contract clause be dependant on 3rd party actions is ... awkward.

[Bullseye]

Do Universal actually have a contract with Toshiba? And if so is there a "real" date when this contract lapses?

[jorg]

Originally Posted by Alan Gordon

So... let's say that Warner Bros. goes exclusive to Blu-ray, as does Universal (I know the chances of this happening in the next few months are mind-boggling, but humor me). DreamWorks and Paramount are just going to be the sole (big name) studios releasing to HD DVD?

If I were Paramount/DreamWorks, I would want a clause in my contract that would leave me an out should I become the lone wolf.



I named some examples I could think of, what are some examples you can think of?

~Alan

actrualy the odds are good for uni going exlusive to blu-ray but even better to go netrual and wanner there a chance of warner going exlusive(if blu-ray out paces them even more)

[Alan Gordon]

Originally Posted by reiella

Off hand, more like, Production Facilities are unable to produce #s necessary. Failure rate at said production facilities exceeds certain thresholds, etc.

Having a contract clause be dependant on 3rd party actions is ... awkward.

Let's say that Warner Bros. goes exclusive, as does Universal. Production Facilities work on Paramount (and a few small studios) HD DVD, but nobody else. Yet, Paramount has no choice but to release to HD DVD because the production facilities are able to keep up with demand?

Blu-ray takes off... selling 1 million discs for D&D releases... HD DVD is selling quarter of a million for D&D releases. Paramount has no choice but to continue to support HD DVD because production facilities are able to keep up with the demand?

I think you had some good ideas regarding clauses in their contract, but surely DreamWorks/Paramount put other clauses into their contract to allow them to exit from exclusivity should HD DVD start circling the drain?

~Alan

[Alan Gordon]

Originally Posted by Bullseye

Do Universal actually have a contract with Toshiba? And if so is there a "real" date when this contract lapses?

I'm not sure if it's ever been proved, but it's been stated many times.

As far as when it ends, I've heard as early as the the past CES (2007), or as late as next Spring.

~Alan