Dissecting the Insanity: What Does the Paramount Deal Really Mean?

When the press release was issued stating that Paramount would be supporting HD DVD exclusively, it was a huge shock to the Blu-ray community. What would drive a movie studio to abandon the more widely adopted high definition format, abandoning potentially millions of Blu-ray consumers, for an inferior, under-supported format? As we found out, it was a red suitcase filled with $150M and the promise to extend this needless format war for another 18 months. Paramount hasn't been a huge player in the high definition war thus far; they've only managed to produce 33 titles for Blu-ray. In sharp contrast, Fox/MGM has so far released 38 titles (over the course of six months) and has another 29 planned for the remainder of the year. Additionally, Paramount has been the slowest to adopt the latest technology, just recently adding AVC support (with ‘Flags of Our Fathers') and almost supporting lossless audio (a PCM track was planned for ‘Blades of Glory'). Their releases are solid, but not even close to the presentations delivered by diehard Blu-ray supporters Disney and Sony. So why did the HD DVD Promo Group pay $150M for exclusive support if that support would be weak? Very simply, they were in deep trouble heading into the forth quarter of the year. Universal, previously the only exclusive HD DVD studio, had seriously bombed in the theater during the summer months, meaning they had few if any blockbuster release for the holiday season on home video. HD DVD needed a reason to exist, and an ultra special edition of ‘Evan Almighty' just wasn't going to cut it. Essentially, they spent $150M for the exclusive rights to ‘Transformers' and ‘Shrek the Third'; and of course, potentially, any other Paramount/Dreamworks blockbusters released in the next year. What remains to be seen is if these high profile releases can do what other exclusive high profile releases have failed to achieve: sell HD DVD players. What the HD DVD Promo Group really bought was one year of life-support for the ailing format. An end to this war was penciled in for early next year, but with this recent shift in support, there is little hope for that now. The shift adds more confusion to an already confusing format war, and consumers will simply stay away until the dust settles; and who can blame them? If a studio can be so easily bought, why shouldn't they hold out until the HD DVD Promo Group is ready to buy their support as well? The obvious first reaction is what you have been witnessing on this website and others: panic. It is easy to let a big press release make you doubt why you chose Blu-ray in the first place, but Paramount's support wasn't the only reason. I can't lie, the news does sting as I have enjoyed many Paramount releases, but I won't let it sway my stance. Stay “Tru Blu” and keep supporting Blu-ray. Resist supporting an inferior technology for one or two movies, and enjoy the countless classics currently on and coming soon to Blu-ray. The best Hollywood studios, most respected producers and directors, and even Paramount's own engineering staff prefer Blu-ray over HD DVD. They all have voices, and not even $150B would be enough to silence them all. *This is an opinion piece by Josh Dreuth, and does not necessarily reflect the feelings of Blu-ray.com, its owners, employees, or members.*
Source: Blu-ray.com | Permalink	Relevant for:

Ben  » Aug 21, 2007
Thank you, Josh... excellent column!

pscoop  » Aug 21, 2007

Ah the voice of reason. Very good points. If the Paramount decision did not include Transformers I would not have had much reaction. As it stands I am not panicked but irritated with Paramount and the their motivation and the motivation of those that paid them to make this decision. I don't think 3 movies will be enough for HD DVD to claim victory, like you said, it will just prolong the inevitable.

blurayalltheway  » Aug 21, 2007

Yeah -Heck ya! M$ can suck it! I'm staying blu, or TruBlu. Fact is if enough directors like Bay and Spielburg keep crying over spilt milk, other studios will take heed. Transformers will find it's way onto BluRay. But seriously- do they think a 1 movie will make people buy a $300 player? It's going to take more than that. It's all up to Fox and Sony to make movies like Spiderman and others, available to us! I'm on the rally wagon, who's with me!!!?

Aaron  » Aug 21, 2007
Josh, It reflects my feelings. I think the whole Paramount thing is absurd. Supporting the winning format would most likely bring in more than 150$ million, and with Christmas soon, it's almost certain that it will. Oh well, everyone make stupid decisions, but this is the most ridiculous decision that one could make. It just prolonged this never ending war.

jcdDigix  » Aug 21, 2007
In the meantime let's BOYCOTT all Paramount Products (DVD, Theater releases etc.)

M_FRESH  » Aug 21, 2007
Blu 4ever. Ill keep buying my blurays every tuesday to end this asap.

ClaytonMG  » Aug 21, 2007
Great column! I think all these people who are freaked out and going nuetral need to read this!

quexos  » Aug 21, 2007

well, still it feels like a sliver out of reach, it won't kill Blu, but it will itch and irritate the whole thing. if i may say, the blu group should target europe as well cause it's the last "rich" corner of the world where nex gen ignorance is still rife. ask people in the streets in belgium or france, whether they like blu or hd-dvd best and the answer will be most of the time: what ? what is that thing you talk about ? those can be easy preys to hi-tech ignorance and fall for hd-dvd, thinking they get the best product. WARNER: if you want to do something right, this is the time to go Blu exclusive, you KNOW it is the best format, it is not rocket science to know that 50GB is better than 30 especially when HD takes so much room, you KNOW nobody likes to watch what they used to call flippers (DVD's with the movie cut thus u had to flip the dvd half way in the movie). you KNOW all that WARNER people, you have the power to cut this short, so please make sense and come BLU exclusive.

kknight  » Aug 21, 2007
Great column! I'm staying Blu forever. I haven't bought HD-DVD movies since the day I got my player (360 add-on), I don't plan on changing that because of Paramount's decision.

bluflu  » Aug 21, 2007
Paramount has lost all respect, and all my business. If it isn't on Blu-ray, it won't get bought. 100+ BDs and counting.

oldmike  » Aug 21, 2007
i think a biger shock whoud be if new line join the war as Blu-ray only

jwbbud  » Aug 21, 2007
be true, support blu!!!!!!!Well stated

BMS77531  » Aug 21, 2007

Contact Viacom With the announcement this week that Viacom's Paramount Pictures and DreamWorks Animation would exclusively support HD DVD. I want Viacom to KNOW I will NO longer watch or support the show or movies. Being average Consumer, this announcement does not support me. I own a PS3 and rent/ buy Blu-ray and with this decision I will not buy another player to watch my favorite shows and movies; in fact I don’t need to. This is just another way for a CEO to GET MORE MONEY and HANG THE REST OF US. It is no wander why pirated copies of DVD's are a problem, and if you ask me a company that thinks only of its BONUS and not it costumers DESERVES IT.

JohnH  » Aug 21, 2007
Nice post! So, bottom line, I have to wait 18 months or so to watch certain titles until the insanity dies down. So be it.

rwriley  » Aug 21, 2007
Why didn't they just price the player at $299 when HD-DVD did. This war would have been over 6 months ago. IMO - the player price is the one thing that prevented Blu-Ray from killing HD-DVD off. If, by chance Sony loses this one too (Beta), the price of the player will be debated for years. Why not take the $110 Million they are planning to spend on a promotion and use it lower the player price ?

JTK  » Aug 21, 2007
Well said, Josh!

tru blu  » Aug 21, 2007
I've said before and I'll keep typing it till I have RSI it's all about the quarterly sales figures. So if you can afford to do so go out and buy a couple of blu ray discs (especially Warner!! now the only neutral) so that blu ray can increase their ratio. Studios cannot argue sales figures. Especially Warner who can do side by side comparison e.g 300

BTBuck1  » Aug 21, 2007
Couldn't have been said better by anyone. AMEN!

ReduxInflux  » Aug 21, 2007
"They all have voices, and not even $150B will be enough to silence them all." typo or hyperbole? but nonetheless well spoken!

monkyman  » Aug 21, 2007
All the top Directors should refuse to sign a contact for any new movies unless they are released on the formats that they agree on. ( Like Speilberg ) If they perfer BD, it should be there option.

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