At the 2008 Consumer Electronics Show in Las Vegas, the companies of the HD DVD Promotional Group recapped a breakthrough year for the high definition format, reaching nearly one million dedicated HD DVD players sold in North America and delivering on the promise of affordability, quality and a consistent experience on every machine. With a leading install base of dedicated players, there are now more than 400 titles available in the US and more than 1,000 titles available worldwide. During the key five week holiday selling period, HD DVD software sales grew at nearly twice the rate of Blu-ray, which was consistent with increased player growth.

As the industry looks for a format that can break into the mainstream consumer market, HD DVD continues...

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Enough with the rhetoric already! It is unlawful for the studios to refuse to license or sell to any disc producer, especially for Warner's admitted purpose of putting HD-DVD out of business. Toshiba: if you don't understand the phrase "Sue the bastards," contact me at phil@malterlaw.com, and I'll be happy to explain it to you.

Please understand that I'm no lawyer. I'm just asking for a little clarification on your comment.

I would assume that Warner has the right to distribute its own product in any way it chooses. If I understand you correctly, you're saying that Warner does not have the right to refuse a third party buying the product and then releasing it in a different format. Do I have that right so far? I would also assume that Warner would not only have to be paid for the intellectual rights to begin with, they'd also be entitled to a percentage of the sales. If this is true, are you saying that Warner has refused to license their product to a third party that intends to sell their product in the HD DVD format?

Henry

You forgot to mention that the HD Consumer Group canceled its news conference there, but perhaps that's not as important as some would make it out to be. Toshiba certainly denies this is the death knell for HD DVD. It would seem to me that the most positive number is the number of titles sold. In February it was 98.71 to every 100 Blu-ray titles sold, much too close to call a winner. And of course the 5 to 1 ratio of Blu-ray to HD DVD players sold is distorted by the popularity of the PS3. And even my own opinion is suspect. I bought a Betamax instead of a VHS machine. Is this payback for seeing an inferior standard adopted in the past? Am I tired of hype succeeding over technical standards?

Absolutely.

Henry

Henry,

The antitrust laws prevent Warner, or any other producer, from refusing to deal for anti-competitive purposes (which, in effect, Warner has admitted). You are correct that Warner would have to be paid by an HD-DVD producer the functionally same amount it is paid by a BR producer. My invitation was purely rhetorical, I presume that Toshiba has already been extensively briefed on this by its lawyers. There are many reasons why it would hesitate to do battle with the movie studios. I for one would like to encourage them as much as possible; breaking the studios current monopoly powers would ultimately reduce disc prices for everyone.

Phil

On the face of it, reducing the price of a disc is a worthy goal, especially if it resulted in more sales and income for the artists that created the material on the disc. But I wonder if this goal is offset by the cost to the consumer of having to purchase different machines for different products? Perhaps this wouldn't be a problem if it was like buying music on records, cassettes, CDs or DVDs. The difference between this example and video would seem to be only cost. But until the cost comes down, it would seem there is an economic advantage to the consumer in having one machine that can handle videos, games and any other high volume content.

I have no doubt that the march of technology will eventually make this question moot, but until then it would seem to me there is a definite advantage to the consumer in having one standard and one machine for all applications.

Henry

I posted the following in another forum and got 'laughed off the board' but it seems that many here had the same basic idea..
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As we know the home video rights for movies are many times sold by the studios to a third party for home video release.

What would prevent such a third party such as "Criterion Collection" or even a new company from purchasing movie rights for release on HD-DVD in the future?

Toshiba use to have a movie releasing division, what would prevent them from recreating this division and purchasing the rights to press HD-DVD's from Warner Bro's or other studios, for retail through like Amazon?

This would leave the studio as backing their "HD" and allow HD-DVD owners to have copies of movies.

--David

The history of competing formats, for example Betamax versus VHS tape, would suggest that content providers don't like multiple formats and tend to only support what they view as the format most acceptable to the public. The recent announcement by Warner to only support Blu-ray seems to confirm that a majority of content providers have made up their mind in this case. Although I wouldn't say what you suggest is impossible, I think it would be extremely unlikely at this point in time. In the case of Betamax versus VHS, for example, the decision was based on perceived public acceptance and not the quality of the recording. Personally, I think the content providers are making the right decision this time because Blu-ray better supports a larger range of applications and is therefore more future proof, a factor I suspect was part of the reasoning that led to their decision.

David,
You are right on the money; but without a lawsuit first, the studios won't permit it.
Henry--there are so many reasons why the beta/vhs analogy is inapplicable. The only thing now preventing HD-DVD from continuing to undercut and outsell BR is a lawsuit.

If you mean this is really all about money, you're right. The studios don't want to support two formats, especially in a possible impending recession. They view the continuing existence of two formats as confusing to the public and having a negative impact on total sales of high definition players. For whatever reason there seems to be the attitude of let's cut to the chase and decide for the public. Toshiba is not happy about this decision because in hardware sales they're doing pretty good right now. Consumers who have already bought HD DVD players are not happy. Microsoft is not happy because of the X-box. The reality here is that there's no solution that can satisfy everyone and, like it or not, ultimately content is king.

Henry

It depends on where you sit. If you are among the 2 million+ who have invested in one side or the other, then the best thing for those consumers is for all studios to distribute In both formats. The only consumers wanting a single format are those who have not yet invested. Sure, there are more consumers that have not invested than those who have ... But you are still alienating a large group of consumers by going to a single format this late in the game.

Bottom line, the solution that makes everyone (the consumers) happy is for all studios to release in both formats.

My opinion.

- Shane

No argument there. I'm just pointing out that the studios are taking a longer view. My guess is they are giving flexibility of the type of content as well as content length a heavy weight in their decision. I don't blame consumers for being angry at the possibility of having the rug pulled out from under them after a substantial financial investment, but they can at least console themselves that the studios are going to save them money in the long run by creating one standard for multiple, and in my view exciting, future-pointing applications.

Henry

I am thinking of writing the 'Silent Giant' in the marketing world 'Wal-Mart' about their support of the HD-DVD market or ask about an extended refund policy for the drives sold/purchased in November/December 2007.
If Wal-Mart had to make refunds on the reported 97,000+ drives ($97,000,000.00).... I think that might wake somebody up.... As we all know Wal-Mart has many 'special' DVD packages and I am sure they could do the same thing for HD-DVD.
Just think if somebody like Wal-Mart walked into Warner Bro's and said they would no longer sell their disc's due to no longer supporting HD-DVD?

--David

I don't think anybody's talking about dropping support for existing HD DVD drives for the time being. But I would expect, over the next few years, HD DVD titles would be harder to find as studios gradually put their support behind Blu-ray as the dominant format. I don't think studios would cut off a revenue nose to spite the format face of a HD drive.

Henry

In a posting else where here at HDTVMagz the company "2007 New Medium Enterprises, Inc." 'HD VMD Players' is releaseing a "RED" laser HD-Player and it seems that they have the rights to movies from almost every studio in their movie listing.
So if this company can get the rights to press disc's for their format from Paramount, Warner, and even Sony then why can't a third party do the same with HD-DVD?