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Well... the high-definition format war just got more confusing for consumers, and you can thank the hubris of the folks at Microsoft for it. Their HD-DVD format (because I'm sorry, can anyone really say it still belongs to Toshiba at this point?) badly needed a shot in the arm going into the holiday season, and just got it thanks to suitcases full of cash from the Microsoft camp. You ready for this? Here it is:
Microsoft has paid DreamWorks and Paramount so much money that they've decided to join Universal in the HD-DVD exclusive camp. No kidding.
None of the participants in this deal are willing to openly disclose just how MUCH money was exchanged, but the L.A. Weekly is reporting (based in part on a confidential report from media analysis firm Pali Research) that it was in the neighborhood of $50 million in "promotional considerations" for Paramount and $100 million for DreamWorks. I'm sure they're also getting lots of free or discounted VC-1 compression and HDi authoring services, along with prime placement on Xbox Live too. Is anyone else just disgusted by Microsoft's naked, shameless financial influence in this thing? That Hollywood is a greedy place should be obvious to all by now, if it wasn't already. The HD-DVD format can't win any other way than for Microsoft to PAY studios off to stay exclusive. And then they have the balls to claim the Blu-ray Disc camp is involved in antitrust violations. Wow.
I'll tell you, this doesn't change our opinion of the eventual outcome of the format war too much. HD-DVD is never going to win this thing. The best it can hope for at this rate, even with the paid involvment of Paramount and DreamWorks, is to stay in the game. But let's face it... if money has to be involved for HD-DVD to stay in the game, that says a lot right there. And while Paramount and DreamWorks will no doubt earn lots of scorn from the rest of the industry, and they'll each make a couple extra movies with Microsoft's money while their stockholders giggle with glee, eventually business realities will dictate that they'll change their tune again. Unless Microsoft pays them more money still. One wonders if Universal just got another paycheck too.
By the way, if anyone doubts that Microsoft's real reason for involving itself in all this is to slow the adoption of next-generation discs by confusing consumers with a continuing format war so their own Xbox Live service can continue to grow and dominate the movie and TV downloading market, you'd better think twice. Because you can bet that while they'll continue to play at supporting HD-DVD, lots of those brand, spanking new high-def transfers will end up on Xbox Live too and for a lot cheaper than the discs.
Anyway, here's the official press release from Paramount and DreamWorks. And I'd like to call your attention to the final sentence in this press release, because I think it tells you EVERYTHING you need to know about this announcement:
Paramount and DreamWorks Animation Each Declare Exclusive Support for HD DVD
Movies Distributed by Paramount Home Entertainment Including Paramount Pictures, DreamWorks Animation SKG, DreamWorks Pictures, Paramount Vantage, Nickelodeon Movies and MTV Films to be Released Exclusively in HD DVD Exclusive Program To Begin with Release of "Blades of Glory," Followed by "Transformers" and "Shrek the Third," Films Representing More Than $1.5 Billion in Combined Worldwide Box Office
LOS ANGELES, Aug. 20 /PRNewswire-FirstCall/ -- Paramount Pictures, a unit of Viacom Inc. (NYSE: VIA and VIA.B) and DreamWorks Animation SKG (NYSE: DWA), each announced today that they will exclusively support the next-generation HD DVD format on a worldwide basis. The exclusive HD DVD commitment will include all movies distributed by Paramount Pictures, DreamWorks Pictures, Paramount Vantage, Nickelodeon Movies and MTV Films, as well as movies from DreamWorks Animation, which are distributed exclusively by Paramount Home Entertainment.
The companies each said that the decision to distribute exclusively in the HD DVD format resulted from an extensive evaluation of current market offerings, which confirmed the clear benefits of HD DVD, particularly its market-ready technology and lower manufacturing costs Paramount Home Entertainment will launch its exclusive HD DVD program with the release of the blockbuster comedy hit "Blades of Glory" on August 28th and follow with two of the biggest grossing movies of the year "Transformers" and "Shrek the Third". These three titles alone represent more than $1.5 billion in box office ticket sales worldwide.
"The combination of Paramount and DreamWorks Animation brings a critical mass of current box office hits to consumers with a line-up of live action and animated films that are perfect for HD DVD," stated Brad Grey, Chairman and CEO of Paramount Pictures, which is currently the leading studio in domestic box office. "Part of our vision is to aggressively extend our movies beyond the theater, and deliver the quality and features that appeal to our audience. I believe HD DVD is not only the affordable high quality choice for consumers, but also the smart choice for Paramount."
"We decided to release "Shrek the Third" and other DreamWorks Animation titles exclusively on HD DVD because we believe it is the best format to bring high quality home entertainment to a key segment of our audience -- families," stated DreamWorks Animation CEO, Jeffrey Katzenberg. "We believe the combination of this year's low-priced HD DVD players and the commitment to release a significant number of hit titles in the fall makes HD DVD the best way to view movies at home."
With the rapid increase of HD TV screens in households, and audiences wanting to enjoy the total entertainment experience, HD DVD has emerged as the most affordable way for consumers to watch their movies in high definition. In addition to pristine quality, HD DVD also offers consumers the chance to personalize the movie-watching experience, to interact with their movies and even to connect with a community of other fans.
Paramount Home Entertainment will issue new releases day and date as well as catalog titles exclusively on HD DVD. Today's announcement does not include films directed by Steven Spielberg as his films are not exclusive to either format.
How do you like THEM apples? Not exclusive to either format? Spielberg's decided his first film on high-def disc is coming out on Blu-ray Disc only. So what do Paramount and DreamWorks do? They bury that little factoid at the tail end of their press release. Nice. Okay, Spielberg hasn't made any kind of public statements to that effect that he supports only Blu-ray. But why then isn't Universal able to release any of his films on HD-DVD? Why then does this deal with Paramount and DreamWorks NOT include Spielberg titles? Because Spielberg wouldn't allow it is the only thing that makes any sense.
I'll tell you what... I'm betting Fox and MGM start making Blu-ray Disc exclusive announcements and soon. You just watch. The reaction will be swift...
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