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Sorry, it loaded slow as hell for me till I found out there was more. Im off to register!

Yeah, the article is loading slow.. I'll post what I have here...when you register, do you mind posting it in full?

Paramount in HD DVD blow

By Matthew Garrahan and Mariko Sanchanta in Las Vegas

Published: January 8 2008 02:49 | Last updated: January 8 2008 02:49

Paramount is poised to drop its support of HD DVD after Warner Brothers’ recent backing of Sony’s Blu-ray technology, in a move that will sound the death knell of HD DVD and bring the home entertainment format war to a definitive end.

Paramount and DreamWorks Animation, which makes the Shrek films, came out in support of HD DVD last summer, joining General Electric’s Universal Studios as the main backers of the Toshiba format.
EDITOR’S CHOICE
Editorial Comment: Betamax’s revenge - Jan-07
Lex: Sony and Blu-ray - Jan-07
Blu-ray deal hits Microsoft and Toshiba - Jan-07
Warner plumps for Blu-ray in format wars - Jan-04
Price war could break DVD deadlock - Dec-19
Studios still locked in combat over format - Dec-06

However, Paramount, which is owned by Viacom, is understood to have a clause in its contract with the HD DVD camp that would allow it to switch sides in the event of Warner Bros backing Blu-ray, according to people familiar with the situation.

Paramount is set to have a bumper 2008 with several likely blockbusters, including the latest instalment in the Indiana Jones franchise.

Paramount joining the Blu-ray camp would leave HD DVD likely to suffer the same fate as Sony’s now obsolete Betamax video technology, which lost out to VHS in a similar format war in the 1980s.

Warners decision last week to throw its weight behind Blu-ray saw it join Walt Disney, 20th Century Fox and Metro-Goldwyn-Mayer as backers of the Sony format.

The Warners move gives Blu-ray about 70 per cent of Hollywood’s output, although the format’s grip on film content will increase further when Paramount comes aboard.

It is unclear whether DreamWorks Animation has the same get-out clause in its contract with the HD DVD camp.

However, Paramount and DreamWorks have a close relationship, with Paramount distributing DreamWorks Animation films. The two companies also signed their HD DVD contracts at the same time. Meanwhile, Universal has declined to comment on its next-generation DVD plans since the Warners move.

Sir Howard Stringer, chief executive of Sony, on Monday held out an olive branch, saying the company would be “open to dialogue” with the HD DVD camp to “grow the market”. The move came as new figures showed that Blu-ray had opened up a decisive lead over the rival home entertainment format.

Sir Howard said: “We are not going to push people around. We’ll talk to anyone ... we have a lot of work to do to grow the market. We’ll be systematic and open to dialogue at all times.”

He added that Sony still had “a lot of work” to do to get Blu-ray “widely accepted” among American consumers.

“With Warner’s support you saw billboards going up in different places and you saw television commercials getting more and more sophisticated and that’s what we’ll continue doing,” said Sir Howard.

 

[Ripclawe]

http://www.reuters.com/articlePrint?articleId=USN0742944620080107

LAS VEGAS (Reuters) - Fears of a deteriorating U.S. economy and falling DVD industry sales helped drive Warner Bros's decision to back Sony's Blu-ray next generation DVD format exclusively, a top executive told Reuters on Monday.

Hollywood's biggest seller of home movies tipped the balance of power on Friday in favor of Sony (6758.T: Quote, Profile, Research) in a fight for the next generation of DVDs between the electronics giant and Toshiba Corp. (6502.T: Quote, Profile, Research), developers of the HD DVD format.

"We've typically been recession proof," Warner Bros Entertainment Group President Kevin Tsujihara said in an interview at the annual Consumer Electronics Show in Las Vegas.

"But the thing that we saw in the fourth quarter...was gas prices beginning to affect sales. And since we're considered an impulse purchase, it's beginning to impact us," he said.

Tsujihara said the company needed to quickly erase consumer and retailer confusion over dueling DVD formats before economic conditions deteriorated.

Toshiba vowed the format war was not over, but Warner's move was seen as a major setback, at least, in the race to develop a potentially multibillion-dollar market for high-definition discs.

Warner executives said the consortium of companies backing Blu-ray, including five of the seven big Hollywood Studios, could spend more than $50 million in 2008 to convince consumers to upgrade, or more than the amount spent by the backers of both HD DVD and Blu-ray in the 2007 holiday season. Budgets have not been finalized, Warner Bros said.

The movie division of media conglomerate Time Warner Inc (TWX.N: Quote, Profile, Research), out of respect for Toshiba, has kept a low profile at the annual Consumer Electronics Show in Las Vegas, the neon-lit gambling oasis in the Nevada desert not known for its subtly.

Even Sony Chief Executive Howard Stringer kept his remarks about Warner brief in public presentations.

Warner's decision is seen cementing Blu-ray's victory in what could possibly be the last physical format for movies and TV shows as technology and Internet companies race to build online distribution channels, according to Citigroup analyst Tony Wible.

A 2007 decline in DVD sales, which account for half of Hollywood's profits, and anticipated further declines in 2008 sped Warner's decision making process.

Merrill Lynch said on Monday the United States had entered its first full blown recession in 16 years.

The economy had little impact on the fourth quarter's higher sales of high definition televisions, which in turn helped boost sales of next generation DVD players, Warner Bros Home Video President Ron Sanders told Reuters.

But worsening conditions in 2008 could scupper sales of new players, and movies, even if only one format survived.

"We've hit the first 30 million" households with high definition televisions, Tsujihara said. "As we go in deeper, they'll be more cost conscious."

 

[vdo]

However, Paramount, which is owned by Viacom, is understood to have a clause in its contract with the HD DVD camp that would allow it to switch sides in the event of Warner Bros backing Blu-ray, according to people familiar with the situation.

I only saw the "Paramount is poised to drop its support of HD DVD..." sentence when I first clicked the article (the rest of the page was blank, and now I am getting a network error).

I just guessed at them having a possible clause for Warner, lol, but it looks like it could be true.

 

[SRG01]

http://www.reuters.com/articlePrint?articleId=USN0742944620080107

No one wants a repeat of the Paramount debacle, so all the execs are noticeably restrained about it.

 

[chubigans]

Yeah, the article is loading slow.. I'll post what I have here...when you register, do you mind posting it in full?

Its highly likely the same content...now the page wont load up at all.

Very weird that the contract would have a "If Warner goes Blu, you do too" clause...but at the same time, it makes perfect sense since they were both neutral at the time.

 

[Suikoguy]

If this happens, and universal and Toshiba hold out, it will be hilarious.

 

[Laurent]

When is the exclusively deal between Universal and HD-DVD camp is supposed to run out? Reports stated that Universal did not renew it... or was it bull?

 

[vdo]

Its highly likely the same content...now the page wont load up at all.

Very weird that the contract would have a "If Warner goes Blu, you do too" clause...but at the same time, it makes perfect sense since they were both neutral at the time.

Yeah, and I am thinking if this is true, Toshiba was in a more precarious situation this whole time - and they were probably very nervous when the Warner rumour's were happening as they knew it would trigger that clause. I would think that meant they were courting Warner pretty strong so that it would not all unravel, but it was probably hard in light of the market share results Warner kept seeing.

 

[chubigans]

When is the exclusively deal between Universal and HD-DVD camp is supposed to run out? Reports stated that Universal did not renew it... or was it bull?

They have...lets see...one HD-DVD title slated for this year. They've been unusually quiet.

 

[polyh3dron]

EDIT: BEATEN!

 

[Snah]

In the Insult to Injury department: Report from CES: Paramount Poised To Drop HD DVD

That's what we're all discussing

 

[polyh3dron]

Shit my bad I'm slow

 

[Ignatz Mouse]

Wooh-- wait. It's the Universal movies that I really wish I had. I didn't personaly miss much about Paramount being gone. Damn!

Still, if Paramount goes, I can't imagine Universal would be long.

 

[Bebpo]

Man, I'll be a little sad if Paramount switches back so fast. My Zodiac amazon order which was originally blu-ray and then became hd-dvd when paramount jumped, just shipped this morning as the last hd-dvd I ever plan on buying. If they bring it out on blu-ray anytime soon, lolz :\

 

[chubigans]

Ok, so how much is Toshiba really set out to lose here? Sony would have lost BIG time, with BD installed in all PS3s being near-useless if HD-DVD won.

But can't Toshiba just stop production and start making BD players? Or did they bankroll the entire HD-DVD manufacturing business?

 

[polyh3dron]

MONDAYTON YEYE

 

[Mrbob]

Oh yeah.

One hi def future.

 

[Bebpo]

Also if Paramount jumps back anytime soon, I'm changing my forcast to Universal blu-ray before June. There's no way they could sit on the sinking ship losing profits if Paramount leaves and they are the only ones left.

 

[Snah]

What an odd clause, if true.

I bet Paramount was secretly hoping Warner would switch all along.

They made out like bandits in all of this, and ironically, I wonder if it led to Warner's decision. If Warner saw the HD-DVD camp pull out all of its stops to try and turn this war -- which, they did by releasing heavily discounted players and coercing paramount to switch sides, thus bringing the largest movie of the year to their side exclusively -- then they'd be more likely to know that "it's over for HD-DVD".

 

[Laurent]

If Paramount must switch, its better to do it as fast as possible so that their user-base isn't too damaged by the double jump...

 

[chubigans]

Also if Paramount jumps back anytime soon, I'm changing my forcast to Universal blu-ray before June. There's no way they could sit on the sinking ship losing profits if Paramount leaves and they are the only ones left.

Which would be ironic, since Uni was the last studio to hop onto the DVD bandwagon.

 

[harSon]

Also if Paramount jumps back anytime soon, I'm changing my forcast to Universal blu-ray before June. There's no way they could sit on the sinking ship losing profits if Paramount leaves and they are the only ones left.

I'm sure the $150 million they received from Toshiba is a lot more then they would get through BluRay sales.

 

[Snah]

I'm sure the $150 million they received from Toshiba is a lot more then they would get through BluRay sales.

That was Paramount, not Universal.

We don't even know much about the Universal-Toshiba ties.

 

[Warm Machine]

If Paramount must switch, its better to do it as fast as possible so that their user-base isn't too damaged by the double jump...

No one has a love affair with movie studios. Its like caring about music labels. People watch tv and movies not studios. Most people can hardly remember or pay attention to what movie comes from where.

It all hinged on Warner and too bad for HD-DVD. I was hoping they would pull through and rally support but whatever.

I would be interested in what was planned by MS or the HD-DVD group for CES if this announcement didn't happen.

 

[harSon]

That was Paramount, not Universal.

We don't even know much about the Universal-Toshiba ties.

Shows how much I pay attention to the format wars :lol

 

[lupin23rd]

I would be willing to bet that any out-clause Paramount has would result in moneyhats being returned. If not... sounds like a big conspiracy from the get-go :lol

 

[polyh3dron]

 

[OokieSpookie]

I would be willing to bet that any out-clause Paramount has would result in moneyhats being returned. If not... sounds like a big conspiracy from the get-go :lol

Perhaps some of it.
HD DID get Transformers and I am sure something else though nothing pops to my mind.
The way clauses usually work though would make it like a breach of contract type situation by toshiba and not Paramount.

 

[lupin23rd]

Hey by the way, I keep forgetting this since the title change...

How is Mr. Enderle doing?

 

[Witchfinder General]

 

[Laurent]

Doesn't work, we are now at the fight AFTER Christmas... Try something else! :lol

 

[polyh3dron]

Hey by the way, I keep forgetting this since the title change...

How is Mr. Enderle doing?

He's probably telling someone about Digital Downloads or something.

 

[mr stroke]

oh snap

 

[polyh3dron]

Doesn't work, we are now at the fight AFTER Christmas... Try something else! :lol

Yeah, but it's an ESCAPE CLAUSE.

I wasn't even thinking about that part, just the blue guy against the red guy and the escape clause thing.

 

[rc213]

Whatever they do they need to do it quickly. I'm getting calls from from friends and family asking if HD-DVD players play Blu-Ray like the PS3 or just standard HD discs. :lol All the local news coverage from CES seems to be about the HD War/Warner/Blu-Ray/HD-DVD.

 

[Laurent]

Yeah, but it's an ESCAPE CLAUSE.

I wasn't even thinking about that part, just the blue guy against the red guy and the escape clause thing.

:lol I didn't even get the color fight before you mentioned it! Must be tired...

 

[Ignatz Mouse]

Was that $150M cash, or promotional money? If the latter, it'd be pretty worthless to Paramount/Dreamworks about now.

 

[Laurent]

Was that $150M cash, or promotional money? If the latter, it'd be pretty worthless to Paramount/Dreamworks about now.

It never was disclosed AFAIK...

 

[quest]

Great news hopefully stores start to liquidate hd-dvd titles dirt cheap. I could handle buying a shit load of movies at 5 dollars or less each.

 

[polyh3dron]

TV Predictions reports the Paramount thing

 

[surazal]

It's on engadget as well, but the source is still the Financial Times article. Great news if it is, but still needs an official press release for confirmation

http://www.engadget.com/2008/01/07/paramount-following-warner-out-the-hd-dvd-door/

 

[polyh3dron]

Watch them do some stupid shit like pull Zodiac ala Blades of Glory.

 

[bill0527]

I just want to say that it feels fucking great to go out and buy my first Blu-Ray discs tonight in confidence.

I had only purchased 10 Blu-Ray discs up until last summer.

When Paramount switched, it scared the hell out of me and convinced me not to invest any more in the format until the war was decided.

So in honor of that, I went to TRU, where they have a BOGO on select titles, stole one of my daughter's $3 off anything birthday TRU gift cards (relax, she's got like 10 of these cards) - ran out and purchased Cars and Ratatouille and paid a grand total of $23.48. So around $11.50 each. What a fucking deal. Can't wait to dive back in and find some more deals out there.

 

[mr stroke]

Watch them do some stupid shit like pull Zodiac ala Blades of Glory.

as long as they put it up on BR the next week

 

[Kastro]

damnit.. I'm about to order Zodiac on HD-DVD as my last HD-DVD.. I didn't feel like waiting for Paramount to jump ship, but if they're gonna do it now..

 

[gkryhewy]

Can't wait to dive back in and find some more deals out there.

If you didn't spend so much time and money on videogames, you could buy as many as you wanted without deal hunting

 

[quest]

I just want to say that it feels fucking great to go out and buy my first Blu-Ray discs tonight in confidence.

I had only purchased 10 Blu-Ray discs up until last summer.

When Paramount switched, it scared the hell out of me and convinced me not to invest any more in the format until the war was decided.

So in honor of that, I went to TRU, where they have a BOGO on select titles, stole one of my daughter's $3 off anything birthday TRU gift cards (relax, she's got like 10 of these cards) - ran out and purchased Cars and Ratatouille and paid a grand total of $23.48. So around $11.50 each. What a fucking deal. Can't wait to dive back in and find some more deals out there.

Better be doing it fast the deals will be far and few inbetween very soon.

 

[Crisis]

Cue AVS pre-meltdown. When Universal drops it (which it WILL) cue Chernobyl.

 

[HocusPocus]

Thank goodness my HD-DVD stuff is selling on Ebay. I'm getting back 90 cents on the dollar.

 

[jiggle]

ran out and purchased Cars and Ratatouille and paid a grand total of $23.48. So around $11.50 each. What a fucking deal. Can't wait to dive back in and find some more deals out there.

Wait what? BOGO on those 2 movies?