Universal 'tight-lipped' today on its next move - Canadian TV, Computing and Home Theatre Forums

darrylr · 2008-01-06, 03:47 PM

Quote:

Universal has been the format’s biggest champion but it was tight lipped on Sunday about its next move. It was unclear whether the studios backing HD-DVD would change sides, although it is understood that Paramount has reserved the right to switch its backing to Blu-ray.

http://www.ft.com/cms/s/8d56c2a8-bc8...0779fd2ac.html

Do people think that Universal (or Paramount) will change their format support in the near term?

Hoowaa · 2008-01-06, 03:51 PM

Quote:

it is understood that Paramount has reserved the right to switch its backing to Blu-ray.

Is that a fact ????

darrylr · 2008-01-06, 03:52 PM

You would think they have some kind of out clauses before the end of the 18 months expire but this is the 1st i've heard a statement like that.

james99 · 2008-01-06, 03:53 PM

If Paramount bails than so will Universal.

You can't expect these decisions to be made overnight (unless they had a heads up regarding the WB move).

JohnnyCanuck · 2008-01-06, 04:01 PM

If there is an out clause, it would have a financial penalty attached.

Universal's not the only one being tight lipped. So's Toshiba, Microsoft, Sony, the BDA ... everyone but Warner has had nothing to say short of a one paragraph press release from Toshiba.

I wouldn't read anything more into Universal's silence than I would anyone else's at this point. It's a weekend and everyone is probably holding their own counsel at this point. Tomorrow will likely be very interesting ... and I'll be off skiing so I won't know, and frankly ... won't care

99semaj · 2008-01-06, 04:04 PM

Quote:

Originally Posted by Hoowaa

Is that a fact ????

Yes, it's a fact. Their HD DVD commitment expires in January 2009. I'm in the air most of tomorrow, but I'll be logging into good ol DHC as soon as I land

darrylr · 2008-01-06, 04:05 PM

Well Toshiba did devote 5 minutes today to HD DVD in their press conference

RigPig · 2008-01-06, 04:09 PM

......'something' will happen much sooner than later.....any Uni/Para 'hddvd' executives that aren't putting the wheels in motion for an exit strategy should be skidded.

polaris · 2008-01-06, 04:22 PM

Not overnight, but quickly. Next few weeks we'll see where their place their bets.

JohnnyCanuck · 2008-01-06, 05:07 PM

Why RigPig?

To be totally contrary, but might it not be in Universal and Paramount's best interest to prolong the format war to the point where it sewers Blu and forces everyone back into the DVD Forum tent for a true HDM common spec? It would certainly be in Toshiba's pure financial interest.

Playing devil's advocate ... but if an exit strategy to Blu means no licensing income (that is, and always has been, the underlying purpose behind everything the BDA and the HD DVD PG have been doing), why might it not be in your best interests simply to do whatever you can to ensure current HDM format failure?

I am not remotely advocating or hoping for that. But if I'm in Universal's executive, I am considering the pros and cons of that very thing (along with maintaining status quo, going dual format, going Blu, or trying to negotiate a common spec within the current HDM formats).

Nanuuk · 2008-01-06, 05:13 PM

Quote:

Originally Posted by JohnnyCanuck

Why RigPig?

To be totally contrary, but might it not be in Universal and Paramount's best interest to prolong the format war to the point where it sewers Blu and forces everyone back into the DVD Forum tent for a true HDM common spec? It would certainly be in Toshiba's pure financial interest.

JohhnyCanuck, then the Law of Deep Pockets kicks in. There are more 'backers' of the Blu-ray hardware (Sony, Panasonic, etc.) than Toshiba can boast. This wouldn't be in their shareholders interests, IMO.

polaris · 2008-01-06, 05:16 PM

I cant see Toshiba justifying dragging this on, but we'll see. They need to make a business decision on how to proceed. I cant see fighting a losing battle making much sense.

JohnnyCanuck · 2008-01-06, 05:20 PM

Remember, I said devil's advocate. I'm not suggesting they will do it, but you better believe they've analyzed it.

You have to remember how much money DVD licensing has put in Toshiba's pockets over the years. The prospect of that ending, or diminishing, with no stream to replace is huge for Toshiba. Regardless of the short and near term fallout, Toshiba needs a strategy to deal with that.

Look at JVC. They went from being a 10,000 pound gorilla to just another CE company because they didn't have a good post-VHS strategy. Granted, Toshiba is bigger and has better diversification, but they didn't get there with only short-term share price management in mind.

My point was responding to a post in which it was said that Universal and Paramount execs who don't get out of HD immediately need to lose their jobs. I was simply pointing out that the level of analysis that any of these companies have to do is significantly beyond simply how many discs move off a shelf. I was doing so to point out the legitimacy of what would appear to be, on the surface, an assannine proposition solely to point out that there are plenty of legitimate business decisions that may not seem to make much sense from the perspective of a poster at DHC that are, in fact, in the best interests of the company making them.

dezzpayne · 2008-01-06, 05:25 PM

Well the $150M may not have been up from cash but as was rumored promotional dollers. Perhaps opting out early simply means they lose out on whatever promotional dollers have not been spent yet?

JohnnyCanuck · 2008-01-06, 05:30 PM

Well no doubt they would lose the promotional money, but likely the contract either outright prohibits them from Blu, which means their hands are tied (liquidated damages for that kind of breach of contract would be massive). Or, there would be a specific sum that would allow Paramount to revert back to dual format or go Blu. That sum would likely be significant, high enough that Sony would not simply cough it up.

2008-01-06, 04:09 PM	#8
RigPig Join Date: Aug 2004 Location: Edmonton Posts: 222	......'something' will happen much sooner than later.....any Uni/Para 'hddvd' executives that aren't putting the wheels in motion for an exit strategy should be skidded. __________________ Integra Research RDC-7.1, Bryston 9B-SST, NHT vt2, vs2 & sw2, Sony 65XBR10w, Moto 6416iii, PS3-250, Sony BDP-s550

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2008-01-06, 03:52 PM	#3
darrylr Veteran Join Date: Feb 2004 Location: Nepean, Ontario Posts: 2,980	You would think they have some kind of out clauses before the end of the 18 months expire but this is the 1st i've heard a statement like that.

2008-01-06, 03:53 PM	#4
james99 Moderator Join Date: Mar 2002 Location: Burlington Posts: 24,791	If Paramount bails than so will Universal. You can't expect these decisions to be made overnight (unless they had a heads up regarding the WB move).

2008-01-06, 04:01 PM	#5
JohnnyCanuck Moderator Join Date: Feb 2004 Location: Vancouver, BC Posts: 4,645	If there is an out clause, it would have a financial penalty attached. Universal's not the only one being tight lipped. So's Toshiba, Microsoft, Sony, the BDA ... everyone but Warner has had nothing to say short of a one paragraph press release from Toshiba. I wouldn't read anything more into Universal's silence than I would anyone else's at this point. It's a weekend and everyone is probably holding their own counsel at this point. Tomorrow will likely be very interesting ... and I'll be off skiing so I won't know, and frankly ... won't care

2008-01-06, 04:05 PM	#7
darrylr Veteran Join Date: Feb 2004 Location: Nepean, Ontario Posts: 2,980	Well Toshiba did devote 5 minutes today to HD DVD in their press conference

2008-01-06, 04:22 PM	#9
polaris Join Date: Jun 2007 Location: Vancouver Posts: 1,314	Not overnight, but quickly. Next few weeks we'll see where their place their bets.

2008-01-06, 05:07 PM	#10
JohnnyCanuck Moderator Join Date: Feb 2004 Location: Vancouver, BC Posts: 4,645	Why RigPig? To be totally contrary, but might it not be in Universal and Paramount's best interest to prolong the format war to the point where it sewers Blu and forces everyone back into the DVD Forum tent for a true HDM common spec? It would certainly be in Toshiba's pure financial interest. Playing devil's advocate ... but if an exit strategy to Blu means no licensing income (that is, and always has been, the underlying purpose behind everything the BDA and the HD DVD PG have been doing), why might it not be in your best interests simply to do whatever you can to ensure current HDM format failure? I am not remotely advocating or hoping for that. But if I'm in Universal's executive, I am considering the pros and cons of that very thing (along with maintaining status quo, going dual format, going Blu, or trying to negotiate a common spec within the current HDM formats).

2008-01-06, 05:16 PM	#12
polaris Join Date: Jun 2007 Location: Vancouver Posts: 1,314	I cant see Toshiba justifying dragging this on, but we'll see. They need to make a business decision on how to proceed. I cant see fighting a losing battle making much sense.

2008-01-06, 05:20 PM	#13
JohnnyCanuck Moderator Join Date: Feb 2004 Location: Vancouver, BC Posts: 4,645	Remember, I said devil's advocate. I'm not suggesting they will do it, but you better believe they've analyzed it. You have to remember how much money DVD licensing has put in Toshiba's pockets over the years. The prospect of that ending, or diminishing, with no stream to replace is huge for Toshiba. Regardless of the short and near term fallout, Toshiba needs a strategy to deal with that. Look at JVC. They went from being a 10,000 pound gorilla to just another CE company because they didn't have a good post-VHS strategy. Granted, Toshiba is bigger and has better diversification, but they didn't get there with only short-term share price management in mind. My point was responding to a post in which it was said that Universal and Paramount execs who don't get out of HD immediately need to lose their jobs. I was simply pointing out that the level of analysis that any of these companies have to do is significantly beyond simply how many discs move off a shelf. I was doing so to point out the legitimacy of what would appear to be, on the surface, an assannine proposition solely to point out that there are plenty of legitimate business decisions that may not seem to make much sense from the perspective of a poster at DHC that are, in fact, in the best interests of the company making them.

2008-01-06, 05:25 PM	#14
dezzpayne Join Date: Mar 2006 Location: Barrie, ON Posts: 1,374	Well the $150M may not have been up from cash but as was rumored promotional dollers. Perhaps opting out early simply means they lose out on whatever promotional dollers have not been spent yet?

2008-01-06, 05:30 PM	#15
JohnnyCanuck Moderator Join Date: Feb 2004 Location: Vancouver, BC Posts: 4,645	Well no doubt they would lose the promotional money, but likely the contract either outright prohibits them from Blu, which means their hands are tied (liquidated damages for that kind of breach of contract would be massive). Or, there would be a specific sum that would allow Paramount to revert back to dual format or go Blu. That sum would likely be significant, high enough that Sony would not simply cough it up.