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Warner, New Line, Paramount, Universal ... The Studios/Networks Thread - Part 2

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Warner, New Line, Paramount, Universal ... The Studios/Networks Thread - Part 2

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Old 01-10-08 | 02:17 AM
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From: Truth or Consequences, NM
Originally Posted by jiggawhat
They'll sell it as long as they're given promotional ad dollars to do it.


But where are those dollars coming from? Toshiba (like Sony) is losing money on HD media/players in the hopes of recouping it in the long-run. How much more money is anyone involved with HD-DVD willing to lose? If there were some chance that it could win maybe, but I highly doubt their shareholders will stand for it....
Old 01-10-08 | 03:00 AM
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Originally Posted by chanster
Firmware upgrades used to be a great thing and added functionality to devices, until CE companies realized (and this isn't a Blu specific problem) they could release poorly tested equipment into the wild and just have consumers fix their problems
Even though I'm too late to make my reply line up with your original quote, I must quote it. Firmware updates are great for things that are constantly connected to an internet connection. CE have ruined the whole idea of firmware updates, J6P has no idea how to hook up his TV to get a firmware update plus it's a pain for those of us who are technologically savvy. I feel it's an even more atrocious to release firmware updates to CE that are not universally acceptable (like needing 1GB of internal memory, I'm not picking on BR but this is the first one I thought of). I love my 360 but damn I do hate the constant updates for shoddy products.
Old 01-10-08 | 03:34 AM
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Those 2 "news" stories do not explicitly state that Universal is gong blu. All they are "reporting" is that Universal's exclusive agreement with HD-DVD has ended. Just because there is another format does not mean Universal is required to release on that format following their deal expiring. All it means is that Universal can now release on any format it so chooses.

As for the digital downloads. I will disclose up front I am 26 and have for the most part stopped purchasing CDs a couple of years ago. I have purchased 2 songs from iTunes in 10 months. (My overall lack of purchases is mostly due the lack of new quality music I like. And no not Beethoven) I prefer to purchase whole CDs of artists I like because of the quality I get when I rip it in using lossless. The compression to 128 kbps is greater than some may expect. The individual songs that pique my interest are iTunes purchases. If/when iTunes offers a monthly subscription at a reasonable price, I will immediately join. Just as when Netflix offers HD movie rentals via a variety of sources (one of the hopes of the Netflix CEO joining the MS board was the 360 being such a device) , I will join when the prices are reasonable. The only reason I do not download my movies and TV shows from XBox Live is the cost is too prohibitive. The days of me amassing physical media are gone because I find it entirely too expensive and space wasting for my tastes. I would rather send a movie back to Netflix and wait 2 days to watch the next one. Does that mean I will no longer purchase movies? No, I have purchased a handful of movies since I joined Netflix. Digital Distribution will destroy rentals if a renting model is used but will fail if a purchase model is used. There is a reason why Netflix is getting out in front of the Digital Distribution wave. The ultimate end is movies on a server, my music is already on one that is streamed throughout my house. I will say that due to the current constraints of 802.11g, the experience is slow moving 300 MB CDs to and from the server. It takes nearly 20 minutes to rip it using iTunes. Playback is bufferless for the most part. Filling a 4GB iPod takes an hour. Once 802.11n becomes fully functional and finalized you will see a large influx of network attached storage devices and playback devices. It is funny that the speed of the internet came up in this discussion. There was an article on how the US has gone from the internet leader to on-par with 3rd world nations not that long ago on either MSNBC or Cnet and how this was severely hindering the American public. There's all this hope that Internet2 will resolve all of those problems but we will see. Once 802.11n is rolled out fairly well and the internet is up to par with more developed countries, the digital distribution debate should begin. Until then it's all a pipe-dream. Physical media will never completely die just like digital distribution will never succeed to the heights people are predicting. The end will fall in between. As for the cheap internet, the US sucks. I'm trying to remember where I saw it and I think it was the same story as the speed tests and I'm beginning to think it was a 60 minutes thing because I think I remember interviews. Anyway... people throughout the world are able to get internet delivered to their homes 5 to 10 times faster than in the US for less than 1/3 of the cost. I remember something about the people of France getting one of those 3 bundles for less than $70 with better components. Shouldn't we be spending our time on improving our technology to match that of France instead of picking new names for Freedom Fries?
Old 01-10-08 | 06:43 AM
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Those stories don't say what's going to happen, sure, but Universal would be a bit foolish to stick around with HD-DVD now, wouldn't they? I'm an HD-DVD supporter but at this point, I don't see universal sticking with HD-DVD.
Old 01-10-08 | 07:04 AM
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I dunno... I just feel like there is going to be one last huge salvo fired by the HD DVD side.
Old 01-10-08 | 07:15 AM
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Originally Posted by darkside
With the little latch on some HD cases, I just push them in a bit to flex the hinge and they start closing fine. I actually like the HD DVD and BD cases and don't want them changed. I wish DVD had gone with cases this small.
I do too, but I wouldn't be sad to see that logo at the top go away once the HD DVD software disappears from shelves.
Old 01-10-08 | 07:19 AM
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Originally Posted by kefrank
if there's one thing i won't miss about the format war, it's reported speculation passed off as official statements and verified facts.
I agree. While it is the natural progression of thought to assume that if they are not exclusive, then they must have plans to launch on BD, but that is not what the article indicates, and until Universal makes an official announcement, the status quo is still in effect.

Speculate away, but don't present speculation as fact. That is something both sides have been guilty of for months.
Old 01-10-08 | 07:22 AM
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Originally Posted by bunkaroo
While all this sounds reasonable, we have to remember the retailers are already reportedly pressuring Paramount and Uni to go Blu. Once places like Best Buy get outside of the holiday return window, they may feel free to just reduce or eliminate their HD DVD sections. If they do that, it won't matter what Paramount and Uni want to do with HD DVD if the big chains don't sell it.
They may pull out of HDM all together, if they feel like they can't turn a profit.
Old 01-10-08 | 07:40 AM
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Is Reuters just full of it?

The title of this piece sounds a hell of a lot more optimistic about things than most of us here.


HD format war seen dragging on
Wed Jan 9, 2008 3:12pm EST

By Nicole Maestri

LAS VEGAS (Reuters) - The high-definition DVD format war has not been won, at least not in the minds of the retailers. Last week, Time Warner Inc's (TWX.N: Quote, Profile, Research) Warner Bros studio said it would exclusively release high-definition DVDs in Blu-ray format instead of Toshiba Corp's (6502.T: Quote, Profile, Research) competing HD DVD technology.

While the announcement was seen as tipping the balance of power in favor of the Blu-ray format, retailers at the Consumer Electronics Show in Las Vegas this week did not see the announcement as a definitive sign of a clear winner.

"I don't think we're in a position to go out and declare a winner," said Steve Eastman, Target Corp's (TGT.N: Quote, Profile, Research) vice president of consumer electronics, in an interview.

As long as there are two standards competing in public, consumers will stay away, he added.

"Until it settles completely I think we're going to continue to see consumers sitting on the sidelines," Eastman said.

That is bad news for the development of a much-needed multibillion dollar industry. U.S. sales of DVDs, which are crucial to Hollywood studio profits, fell 4.8 percent to $15.7 billion in 2007, the first significant drop since the format was introduced, according to preliminary Adams Media calculations.

"It would be our hope that by this Christmas there would be a clearer choice for the customer, instead of battling back and forth" between the formats, said Gary Severson, senior vice president in charge of electronics for Wal-Mart Stores Inc's (WMT.N: Quote, Profile, Research) U.S. stores.

"I don't know if that's going to happen or not."

THE BATTLE CONTINUES

HD DVD was developed by Toshiba while Sony Corp (6758.T: Quote, Profile, Research) developed the Blu-ray standard.

The new high-definition DVDs, with better picture quality and more capacity, were expected to help revive the slowing $24 billion global home DVD market.

But Hollywood studios split their alliances between the two standards. After the switch by Warner, studios behind some three-quarters of DVDs are backing Blu-ray. Some release in both formats, with a minority focused on HD DVD.

Similar to the Betamax-VHS battle in the 1980s, having two competing DVD standards has created customer confusion, dampened sales of both formats and put retailers in a conundrum of having to either choose sides or sell products that have a chance of becoming obsolete very quickly.

This holiday season, shelves at many consumer electronics retailers were stuffed with Blu-ray DVDs, HD DVDs, and players the supported one or both formats.

Amid the plethora of products, some retailers chose to make a decision and support a single format.

Target decided to sell only Blu-ray disc players in its stores, although it offered both formats on its Web site.

"We felt, initially because of the confusion, we had to pick one," Eastman said.

CLOSER TO A CONCLUSION?

Circuit City Stores Inc (CC.N: Quote, Profile, Research) and Best Buy Co Inc (BBY.N: Quote, Profile, Research) indicated no plans to change sales strategy after the Warner Bros announcement, although they said it was a signal that the industry was closer to backing one unified standard.

"We are very excited to see progress of any type, and we see this as significant progress," said Circuit City Chief Executive Officer Phil Schoonover at CES.

Best Buy CEO Brad Anderson also said at the conference that the decision makes it "a lot easier to see the likelihood that we get to one format, and it makes it easier for us as retailers to help push it to that one format."

Even if a winner emerges, Hollywood executives and retailers at CES say consumers still need to be convinced high definition is worth buying.

"If we were able to have one united message and say: 'Here's high definition TV, here's a high definition DVD, here's the medium to play on it,' it's a much cleaner story to customers that the industry can push, that every retailer can push and the customer goes, 'OK I get it,'" Wal-Mart's Severson said.

"Right now they're basically being taught to wait and see what happens," he said.

But one retailer is not concerned with whether the wars end this year or next year, or ever.

"We don't have to choose," said Paul Ryder, vice president of the electronics store for online retailer Amazon.com (AMZN.O: Quote, Profile, Research), which tries to offer as wide a selection of electronics products as it possibly can since it has no physical stores.

"I don't have to say I don't have enough room on my shelf."


(Additional reporting by Franklin Paul in Las Vegas, editing by Richard Chang)
Old 01-10-08 | 08:00 AM
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Variety: Universal exclusive contract with HD DVD is over
Daily Variety has confirmed that Universal's commitment to backing HD DVD exclusively has ended. And Paramount has an escape clause in its HD DVD contract allowing it to release pics on Blu-ray after Warner Bros.' decision to back that format exclusively.
Old 01-10-08 | 08:12 AM
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You're JOKING! We have never seen this story before! Especially not on page 17 of this very thread...
Old 01-10-08 | 08:23 AM
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Originally Posted by wewantflair
You're JOKING! We have never seen this story before! Especially not on page 17 of this very thread...
I don't see it, I'm only showing 12 pages in this thread.
Old 01-10-08 | 08:29 AM
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Originally Posted by RoboDad
It will be interesting to see the reaction from the HD DVD camp if it plays out this way. The expressions of betrayal and outright hatred leveled at Warner have been striking. Among the various forums I've been visiting, I've read claims of everything from "stabbing consumers in the back" to "selling out to $ony", and even worse.

If Universal and Paramount have a big push of titles, and then suddenly pull out later in the summer/fall, will those people not feel the same sense of betrayal?
Probably... and it will be equally misplaced as claims of betrayal are now. It has become pretty obvious (to me anyways) that most of those who are in this format war didn't really expect there to be a loser (in the disappearing sense)... but that both formats would continue to co-exist. That belief is completely unreasonable.
Old 01-10-08 | 08:46 AM
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Wow, will these same people be claiming this Universal situation means nothing also feel the same about a candidate dropping out of a two person race come this November? For a short time it could be said that the other candidate hasn't won until the election folks officially declare a winner, but in a contest win only two real options, one situation does result in the other without question.

This isnt a "Dewey Wins" scenario. Nobody is projecting anything here, only going with the facts. Unless it's a factual error, in these cases an end of a exclusive contract only has one meaning. That the studio will at the very least manufacture both formats. I don't see anybody claiming when it will definitively start or that anybody will switch and be exclusively Blu. In other words, they are sticking with the facts.

If you want to dispute the facts, go for it. But I don't see anybody disputing that these exclusive contracts are ending. Unless the word exclusive suddently has a different meaning, the flip side of an exclusive contract ending is quite clear.

Last edited by cardaway; 01-10-08 at 08:48 AM.
Old 01-10-08 | 08:52 AM
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Originally Posted by sracer
Probably... and it will be equally misplaced as claims of betrayal are now. It has become pretty obvious (to me anyways) that most of those who are in this format war didn't really expect there to be a loser (in the disappearing sense)... but that both formats would continue to co-exist. That belief is completely unreasonable.
I agree. Given the total lack of promises by anybody that both formats would be supported for any length of time, I find these comments aobut the studios totally ridiculous.

This is a piece of entertainment equipment, not a car. I can see people being upset that a car would no longer be supported by the manufacturer, but not a DVD player. It's not like the players and discs are defective, they just will no longer be made.
Old 01-10-08 | 09:09 AM
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Originally Posted by cardaway
Wow, will these same people be claiming this Universal situation means nothing also feel the same about a candidate dropping out of a two person race come this November? For a short time it could be said that the other candidate hasn't won until the election folks officially declare a winner, but in a contest win only two real options, one situation does result in the other without question.

This isnt a "Dewey Wins" scenario. Nobody is projecting anything here, only going with the facts. Unless it's a factual error, in these cases an end of a exclusive contract only has one meaning. That the studio will at the very least manufacture both formats. I don't see anybody claiming when it will definitively start or that anybody will switch and be exclusively Blu. In other words, they are sticking with the facts.

If you want to dispute the facts, go for it. But I don't see anybody disputing that these exclusive contracts are ending. Unless the word exclusive suddently has a different meaning, the flip side of an exclusive contract ending is quite clear.
Nobody is claiming it means nothing. The problem is when people draw inappropriate and overreaching conclusions based on a set of incomplete data (read: thread entitled "Universal Going Blu"). Just for reference, it was reported that WB's BDA membership lapsed at the end of October, I believe. This fueled nutty rumors over on AVS for a few weeks. In the end, it meant nothing. Ultimately, Universal's contractual end with HD DVD means only one thing: they are free to stop producing HD DVD's. Since Universal has no financial interest (patent interest such as WB) in the success of BD relative to HD DVD, it may very well release nothing on Blu Ray until the market matures, especially given the low sales volume to this point. Do I think this is likely? Not particularly. But it's about as certain an outcome as "Universal to release on Blu" based on our current data set.
Old 01-10-08 | 09:13 AM
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Originally Posted by wewantflair
Nobody is claiming it means nothing. The problem is when people draw inappropriate and overreaching conclusions based on a set of incomplete data (read: thread entitled "Universal Going Blu").
took the words out of my mouth. it's not that it means nothing. it's just that it does not explicitly mean that which some have claimed it does. that kind of thing has been happening on both sides since the format war started and it's extremely tiring.
Old 01-10-08 | 09:18 AM
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Originally Posted by wewantflair
Nobody is claiming it means nothing. The problem is when people draw inappropriate and overreaching conclusions based on a set of incomplete data (read: thread entitled "Universal Going Blu").
The only people overreaching IMO are the ones trying to tell people there is nothing to see here. The conclusion is a given since in this case the flip side of exclusive only has one meaning.

If people want to step in and join the studios in these word games, be my guest. But it doesn't mean anybody else is wrong for refusing to play with you.
Old 01-10-08 | 09:20 AM
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Originally Posted by Peep
Please, your theory has already been debunked. What Warner is doing is not a layoff, at least not in terms of a traditional cost-cutting measure. They, like a bunch of other studios, are using the writers' strike as an excuse to sever a lot of unprofitable development deals which they would not have been able to get out of otherwise.

Whenever a writer gets hot, a studio tries to lock him/her in for a multi-picture /show deal. Really successful writers get to bring in a large support staff. Sometimes these development deals flop and the studios are stuck carrying what they believe is dead-weight for many years. The 60 days of inactivity caused by the strike lets them sever any deal that they want to.

That's why any amount of money Warner might have gotten to go Blu didn't have an impact on the "layoffs" - because they weren't layoffs. In some ways, the strike was the best thing that could happen to the studios. They lose a little money short-term but they get to sever a bunch of painfully unproductive deals. I've read several articles in the LA Times quoting people who predicted that the studios wanted the strike to last a minimum of 60 days for just such a reason.

Only time will tell.

Wow -- I guess I've been told!

Look, I posted the news originally because it has to do with the current state of affairs at Warner, about whom this thread primarily seems to be devoted. My "theory" was really nothing more than wild-eyed conjecture, no different than much of what goes on here already. The only real difference being that I never really expected it to be taken seriously, which, apparently, you did, even in spite of the "wink" in my previous post. I apologize for having been so vague.
Old 01-10-08 | 09:24 AM
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That Reuters article sounds more optimistic because a lot of the quotes are from retailers... Retailers who don't want a FLOOD OF RETURNS on recently purchased HD DVD players and discs... The average person who just got an HD DVD player probably isn't keeping up on news like we do, so this kind of story might be the only one they see... and it won't send them into a panic and retailers won't lose money...
Old 01-10-08 | 09:28 AM
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Originally Posted by applesandrice
Wow -- I guess I've been told!

Look, I posted the news originally because it has to do with the current state of affairs at Warner, about whom this thread primarily seems to be devoted. My "theory" was really nothing more than wild-eyed conjecture, no different than much of what goes on here already. The only real difference being that I never really expected it to be taken seriously, which, apparently, you did, even in spite of the "wink" in my previous post. I apologize for having been so vague.
I know I knew you were joking, but it did get me thinking. WHo knew what, and when? Sure gives those awesome sales on HD-DVD players at the end of the year a new meaning. If somebody was to put on their tin foil hat and go nuts they could wonder if these retailers knew something was coming.
Old 01-10-08 | 09:40 AM
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Originally Posted by mdc3000
That Reuters article sounds more optimistic because a lot of the quotes are from retailers... Retailers who don't want a FLOOD OF RETURNS on recently purchased HD DVD players and discs... The average person who just got an HD DVD player probably isn't keeping up on news like we do, so this kind of story might be the only one they see... and it won't send them into a panic and retailers won't lose money...
This is just anecdotal evidence but I have a friend who is the media supervisor of the Galleria Best Buy in Houston which is one of the bigger ones in the greater Houston area. I asked him if there was any adverse reaction to the Warner announcement and he said they have been getting an unusual amount of returns for hd-dvd as "christmas returns". I asked him if it also applied to players but he said he did not know about that.
Whether this has to to do with the warner shift or uninformed buyers, I have no idea.
Old 01-10-08 | 09:42 AM
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Originally Posted by cardaway
The only people overreaching IMO are the ones trying to tell people there is nothing to see here. The conclusion is a given since in this case the flip side of exclusive only has one meaning.

If people want to step in and join the studios in these word games, be my guest. But it doesn't mean anybody else is wrong for refusing to play with you.
no matter how much you want it to be, variety reporting that universal's HD DVD-exclusive agreement has ended is not the same thing as universal announcing blu-ray releases. will universal do that at some point? it is highly likely. do you know that with absolute certainty? no. that's called speculation.

additionally, your logic is flawed. an exclusivity agreement ending does not have just one flip side. it simply means universal now has the freedom to release whatever they want. they could continue to exclusively release on HD DVD. they could release on Blu-ray and HD DVD. they could drop HD DVD and release on Blu-ray only. there are many possibilities based on the reported "facts" and educated speculation suggests they will release on Blu-ray soon, but that is still speculation until universal gives an official announcement.

that's been my whole point. speculation treated as absolute fact is an obnoxious exercise in this format war and i'm not going to miss it. don't get me wrong - i firmly believe, along with you, that universal will be releasing on blu-ray soon (within the year at the very least), but i'm not going to present that as a fact until universal announces it.
Old 01-10-08 | 09:56 AM
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Interesting that everybody telling others their logic is "flawed" is sneaking in disclaimers that they agree since the conclusion IS there for everybody to see. Nobody willing step up and say that an other conclusion will happen. Just a bunch of wordplay and hot air.

It's now obvious, that what I guess is two sides here, will never agree. I'll end my posts on this subject with this;

I'm glad that the people writing these acrticles, and the people posting them here, are not afraid of the backlash from people who want join the studios in their word games.

I would rather see these articles give the facts as we know them now rather than wait for what some people seem to want to see happen. Wait until the final anouncement, after they ahve purchased countless more of HD-DVDs. Then they can whine even more than the studios did them wrong. They can claim that Universal didn't tell them that they were switching till (enter date months from now), and it's Universal's fault that they bought (insert movie here) on HD-DVD when they could have waited to get it on Blu-Ray later in the year. Unbelievable, but maybe that's just me.

Last edited by cardaway; 01-10-08 at 10:19 AM.
Old 01-10-08 | 09:59 AM
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Originally Posted by wewantflair
Nobody is claiming it means nothing. The problem is when people draw inappropriate and overreaching conclusions based on a set of incomplete data (read: thread entitled "Universal Going Blu"). Just for reference, it was reported that WB's BDA membership lapsed at the end of October, I believe. This fueled nutty rumors over on AVS for a few weeks. In the end, it meant nothing. Ultimately, Universal's contractual end with HD DVD means only one thing: they are free to stop producing HD DVD's. Since Universal has no financial interest (patent interest such as WB) in the success of BD relative to HD DVD, it may very well release nothing on Blu Ray until the market matures, especially given the low sales volume to this point. Do I think this is likely? Not particularly. But it's about as certain an outcome as "Universal to release on Blu" based on our current data set.
Exactly. There are four options, three of which many people are completely discounting. The first is that they renew their contract with HD DVD (unlikely IMO) , the second is that they go with BD (possible), the third is that they back both (most likely IMO) and the fourth is that they step away from HDM all together.

The problem with a lot of these opinions dressed as stories is that there are nuggets of news in them. If Obama drops out tomorrow does that mean Hillary wins? Maybe, but someone else could come along and win too. So the story would be "Obama drops out," not "Hillary wins." The twisting of fact to suit a preference and presenting of opinion as fact has got to stop.

Last edited by Qui Gon Jim; 01-10-08 at 10:32 AM.


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