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What incentives are there to stay exclusive?

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What incentives are there to stay exclusive?

Old 02-15-07, 10:48 PM
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What incentives are there to stay exclusive?

I just see it as excluding yourself from a large amount of consumers.

What are the advantages for companies like Fox/Disney to be strictly BR?
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Old 02-15-07, 10:59 PM
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Originally Posted by Depression
I just see it as excluding yourself from a large amount of consumers.

What are the advantages for companies like Fox/Disney to be strictly BR?

Blu-Ray's anti piracy protections are a major factor.
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Old 02-15-07, 11:00 PM
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They believe Blu-Ray offers superior copy protection.
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Old 02-15-07, 11:14 PM
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Perhaps the better question to ask right now is what incentive does Universal have in staying exclusive?
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Old 02-15-07, 11:23 PM
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Universal got burned by UMD.
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Old 02-16-07, 06:08 AM
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Originally Posted by Suprmallet
Universal got burned by UMD.
along with everyone else. I thought they hated Sony for other reasons as well.
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Old 02-16-07, 08:50 AM
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Originally Posted by Fandango
Perhaps the better question to ask right now is what incentive does Universal have in staying exclusive?
No, both questions are equally important. So far, the only company without its head up its ass is Warner. Sony, Fox, and Universal are exclusive-only () and Paramount releases a movie every 6-8 weeks (or so it seems).
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Old 02-16-07, 08:57 AM
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Universal and Sony have been locked in battle over a couple different things.

Universal Remote Control Sony - Flat search it on Google - there is ton of things that they've been feuding over between each other on a large scale (music - media files - entertainment gaming - etc.)

Its kinda like your enemy shaking hands with the other guy.
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Old 02-16-07, 10:01 AM
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Do the exclusive studios really need a reason at this point?

We're not even 1 year into this thing, and the # of units sold on both sides is pitifully small. It wouldn't surprise me if the "exclusive" studios are in a holding pattern simply because there isn't enough reliable data to make a decision yet.

We as early adopters have our own opinions and conclusions, and are swayed by the propaganda put out by the various sides, but do you really think those press announcements have any sway on industry giants? They've seen this all before.

The numbers aren't there yet in order to make anyone shift positions. Any movement would be premature at this point.
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Old 02-16-07, 10:19 AM
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Originally Posted by waylonsmithers
Blu-Ray's anti piracy protections are a major factor.
But now that Blu-ray's been hacked (as has HD), what's the point?
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Old 02-16-07, 10:30 AM
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I see no point in studios staying exclusive. Even though the market is small, they are all still losing guaranteed sales. For example, if Disney released Pirates of the Caribbean on both formats and it sells 25,000 Blu-ray discs, they would probably sell at least 15,000 HD DVDs too. This format war seems to be one of the few instances in which companies who are in business to make money, literally do not want everyone's money.
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Old 02-16-07, 10:57 AM
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Originally Posted by fryinpan1
I see no point in studios staying exclusive. Even though the market is small, they are all still losing guaranteed sales. For example, if Disney released Pirates of the Caribbean on both formats and it sells 25,000 Blu-ray discs, they would probably sell at least 15,000 HD DVDs too. This format war seems to be one of the few instances in which companies who are in business to make money, literally do not want everyone's money.

With the fact that Blu-Ray discs are more expensive to manufacture, plus whatever kick-up they have to give Sony, I'd think the profit margin would be higher for HD-DVD.
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Old 02-16-07, 11:08 AM
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Originally Posted by slop101
But now that Blu-ray's been hacked (as has HD), what's the point?
AACS, the same copy-protection HD has, has been hacked on BD. However, BD also has an additional copy-protection scheme called BD+ built into the spec. I don't think any BDs have utitlized this additional copy-protection scheme yet, but it was this additional layer of security that led studios like Disney and Fox to chose it, lest AACS was ever cracked.
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Old 02-16-07, 11:09 AM
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It always puzzles me when they pick exclusives.

I mean look at video games when 3rd party companies stay exclusive. However, in more recent news...Video Game companies are starting to have all cross-platform games. Virtua Fighter 5, Resident Evil....which used to be Sony exclusives.

Here's hoping The BD/HD-DVD become "less" exclusive, as BD seems to have the lead in that.
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Old 02-16-07, 11:58 AM
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Originally Posted by fryinpan1
I see no point in studios staying exclusive. Even though the market is small, they are all still losing guaranteed sales. For example, if Disney released Pirates of the Caribbean on both formats and it sells 25,000 Blu-ray discs, they would probably sell at least 15,000 HD DVDs too. This format war seems to be one of the few instances in which companies who are in business to make money, literally do not want everyone's money.
IIRC, the top selling title to date on either format has moved 7,500 copies. That is a pathetically small number, an infintessimal fraction of DVD sales. The studios at this point are digging in with their chosen formats and hoping for growth, but at this point it simply isn't worth the startup expense it would take to invest in the competing format.
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Old 02-16-07, 12:10 PM
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Originally Posted by Josh Z
IIRC, the top selling title to date on either format has moved 7,500 copies. That is a pathetically small number, an infintessimal fraction of DVD sales. The studios at this point are digging in with their chosen formats and hoping for growth, but at this point it simply isn't worth the startup expense it would take to invest in the competing format.
I believe that was Crank that sold around 7,500 copies its first week. I recall reports from last year that said M:i:III and X-Men 3 both sold more than that. Nevertheless, the fact remains that studios are turning away money and sales by not releasing on both formats.
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Old 02-16-07, 02:04 PM
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Originally Posted by fryinpan1
I believe that was Crank that sold around 7,500 copies its first week. I recall reports from last year that said M:i:III and X-Men 3 both sold more than that. Nevertheless, the fact remains that studios are turning away money and sales by not releasing on both formats.
It costs more for them to release on both formats than they would make in sales.
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Old 02-16-07, 02:17 PM
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Originally Posted by Josh Z
It costs more for them to release on both formats than they would make in sales.

I was under the impression that producing HD-DVD discs isn't much more expensive than producing SD discs, whereas Blu-Ray costs more just to produce the disc, and then there are royalties to Sony on top of that. Am I wrong?
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Old 02-16-07, 04:30 PM
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Originally Posted by applesandrice
I was under the impression that producing HD-DVD discs isn't much more expensive than producing SD discs, whereas Blu-Ray costs more just to produce the disc, and then there are royalties to Sony on top of that. Am I wrong?
If you're talking about the pure cost of pressing the discs, you're correct. But you also have to factor in things like software programming, authoring, possibly investing in a different compression format, new packaging and marketing materials, and the added staffing and man-hours it would cost to add a new product to their release slate. All of that adds up. If after all that you only sell a couple thousand copies of a given title, you've lost a lot of money.
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Old 02-16-07, 04:51 PM
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Originally Posted by Josh Z
If you're talking about the pure cost of pressing the discs, you're correct. But you also have to factor in things like software programming, authoring, possibly investing in a different compression format, new packaging and marketing materials, and the added staffing and man-hours it would cost to add a new product to their release slate. All of that adds up. If after all that you only sell a couple thousand copies of a given title, you've lost a lot of money.

That's still not quite what I was getting at, but all of those things definitely add up. Aside from the cost of pressing the discs, I understood that the licensing for Blu-Ray is a lot more expensive than it is for HD-DVD. Also, given that the two can use so many of the same files and basic elements, I wouldn't think that a studio which produces Blu-Ray discs would have to invest that much more than they've already invested in order to produce HD-DVDs. Even selling 5-7,000 copies of a title (to pull some figures right out of the air) I would think the move would at least pay for itself, given the lower overall production costs for HD-DVD.
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Old 02-17-07, 02:23 AM
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Why would a studio chose to chase a small pile of cash in the short term when they're looking at a far larger pile in the long term? My guess is that most have looked at their research and seen that consumers want a single format before they mass-adopt. Releasing on both formats pushes that day out into the more distant future.
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