Why post this? Well it means that you PS3 owners and early adopters of Blu-Ray will not be able to purchase Transformers in that format. Its DVD and HD-DVD only. No details of the Transformers was released but I am thinking its still on track for the last week or two of November.
So why HD-DVD. My take is theoretically HD-DVD is losing the format wars, but that is based on sales of the two formats that is pretty darn small compared to DVDs. Its also based on standalone hardware sales, including the PS3. If take the PS3 out of the equation, the lead is not so substantial. Since most movie sales is based on hardware, not gaming hardware, its the standalone, non-PS3 hardware sales combined with the disc sales that will determine the final "winner."
Of course the hybrid format may become king as the studios throw up their hands and say screw it, but right now the goal is eek out as much of a percentage of profit per sale as can and producing hybrid discs or for both formats is counter to that. By that it means they have to produce content that will play in both formats and it also limits how much they mine their library as they don't want to produce alot of content for a format that disappears. Basically they are taking a gamble that HD-DVD will reign supreme and if correct, they will have a lead on the format and benefit from it. If wrong, then oops (but the $150 million deal with HD-DVD folks paid Paramount will soften the blow).
Also, as AICN points out, Toshiba is coming very close to produce HD-DVD that is less then $300 by end of the year why Blu-Ray seems it will remain at $500 (hence why PS3 is a good deal if HD quality matters to you). Price point of the hardware often dictates the winner in the format wars as consumers in general will flock to the cheaper (yet better to DVD) format. They also added that its cheaper to convert mass production from DVD to HD-DVD then to Blu-Ray.
So the formula is simple: cheaper production costs + cheaper manufacturing costs + $150 million deal + larger mining of library + a gamble HD-DVD winning the format war = HD-DVD exclusive for Paramount.
The press release:
PARAMOUNT AND DREAMWORKS ANIMATION EACH DECLARE EXCLUSIVE SUPPORT FOR HD DVD
Movies Distributed by Paramount Home Entertainment Including Paramount
Pictures, DreamWorks Animation SKG, DreamWorks Pictures, Paramount Vantage,
Nickelodeon Movies and MTV Films to be Released Exclusively in HD DVD
Exclusive Program To Begin with Release of “Blades of Glory,” Followed
by “Transformers” and “Shrek the Third,” Films Representing More Than $1.5
Billion in Combined Worldwide Box Office
Los Angeles, CA, August 20,
2007 – Paramount Pictures, a unit of Viacom Inc. (NYSE: VIA and VIA.B) and
DreamWorks Animation SKG (NYSE:DWA), each announced today that they will
exclusively support the next-generation HD DVD format on a worldwide basis. The
exclusive HD DVD commitment will include all movies distributed by Paramount
Pictures, DreamWorks Pictures, Paramount Vantage, Nickelodeon Movies and MTV
Films, as well as movies from DreamWorks Animation, which are distributed
exclusively by Paramount Home Entertainment.
The companies each said
that the decision to distribute exclusively in the HD DVD format resulted from
an extensive evaluation of current market offerings, which confirmed the clear
benefits of HD DVD, particularly its market-ready technology and lower
manufacturing costs. Paramount Home Entertainment will launch its exclusive HD
DVD program with the release of the blockbuster comedy hit “Blades of Glory” on
August 28th and follow with two of the biggest grossing movies of the year
“Transformers” and “Shrek the Third”. These three titles alone represent more
than $1.5 billion in box office ticket sales worldwide.
“The combination
of Paramount and DreamWorks Animation brings a critical mass of current box
office hits to consumers with a line-up of live action and animated films that
are perfect for HD DVD,” stated Brad Grey, Chairman and CEO of Paramount
Pictures, which is currently the leading studio in domestic box office. “Part of
our vision is to aggressively extend our movies beyond the theater, and deliver
the quality and features that appeal to our audience. I believe HD DVD is not
only the affordable high quality choice for consumers, but also the smart choice
for Paramount.”
“We decided to release “Shrek the Third” and other
DreamWorks Animation titles exclusively on HD DVD because we believe it is the
best format to bring high quality home entertainment to a key segment of our
audience – families,” stated DreamWorks Animation CEO, Jeffrey Katzenberg. “We
believe the combination of this year’s low- priced HD DVD players and the
commitment to release a significant number of hit titles in the fall makes HD
DVD the best way to view movies at home.”
With the rapid increase of HD
TV screens in households, and audiences wanting to enjoy the total entertainment
experience, HD DVD has emerged as the most affordable way for consumers to watch
their movies in high definition. In addition to pristine quality, HD DVD also
offers consumers the chance to personalize the movie-watching experience, to
interact with their movies and even to connect with a community of other fans.
Paramount Home Entertainment will issue new releases day and date as
well as catalog titles exclusively on HD DVD. Today’s announcement does not
include films directed by Steven Spielberg as his films are not exclusive to
either format.
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