Version: 2008

Comments on: Toshiba 'disappointed' over Warner Bros. decision

The biggest hardware backer of the HD DVD format responds to Warner Bros. recent decision to back Blu-ray exclusively.

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DOJ Needs to investigate the format war
by ballssalty January 6, 2008 1:15 PM PST
It's clearly obvious that Sony or other studios backing Blu-Ray paid WB a boatload of money to abandon HD-DVD just as Toshiba probably paid Paramount a boatload. The DOJ needs to investigate Sony and Toshiba as well as the major studios over how this whole thing has played out and there is most likely collusion going on here.
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Common knowledge...
by KCL January 6, 2008 1:25 PM PST
It's common knowledge that Paramount received $150M from
Toshiba, Microsoft or other HD-DVD backer. No need to call in the
DOJ, here.
What's there to investigate?
by fredtheviking January 6, 2008 1:25 PM PST
It is not illegal not to support HD-DVD. No one is legal required to support it. Also, there is always DVD, which is supported by all major studios. Actually, it is probably cheaper to support one format. So, supporting one or the other makes sense. I think the best bet at the moment is Blue-ray.
View reply
Tin foil hat club member?
by BCF1968 January 7, 2008 11:37 PM PST
Maybe WB made a FINACIAL decision. Right now they were the only one supporting 3 formats, DVD, HD-DVD and blu-ray. They'd like to support ONE. That one being one of the 2 HD formats. To do that you have to kill off DVD. You don't kill off DVD when you have a format war which keeps people from jumping to HD. So the common sense approach is to jump to one side or another. Jumping to HD-DVD most likely would have prolonged the war since both formats would have 50% of the market. Also Warner saw the numbers from the holiday season and saw despite huge price cuts for HD-DVD it made little difference in blu-ray's 2:1 sales ratio of discs. If it had made a difference they may have chosen to continued to support both.

Microsoft could have ended this war a long time ago by including a HD-DVD drive on the 360. Sony's gamble by including blu-ray on the PS3 paid off.
View reply
I bought Blu-ray
by paulsecic January 9, 2008 10:46 AM PST
Enough. Blu-ray won!
DOJ Needs to investigate the format war
by ballssalty January 6, 2008 1:15 PM PST
It's clearly obvious that Sony or other studios backing Blu-Ray paid WB a boatload of money to abandon HD-DVD just as Toshiba probably paid Paramount a boatload. The DOJ needs to investigate Sony and Toshiba as well as the major studios over how this whole thing has played out and there is most likely collusion going on here.
Reply to this comment
Common knowledge...
by KCL January 6, 2008 1:25 PM PST
It's common knowledge that Paramount received $150M from
Toshiba, Microsoft or other HD-DVD backer. No need to call in the
DOJ, here.
What's there to investigate?
by fredtheviking January 6, 2008 1:25 PM PST
It is not illegal not to support HD-DVD. No one is legal required to support it. Also, there is always DVD, which is supported by all major studios. Actually, it is probably cheaper to support one format. So, supporting one or the other makes sense. I think the best bet at the moment is Blue-ray.
View reply
Tin foil hat club member?
by BCF1968 January 7, 2008 11:37 PM PST
Maybe WB made a FINACIAL decision. Right now they were the only one supporting 3 formats, DVD, HD-DVD and blu-ray. They'd like to support ONE. That one being one of the 2 HD formats. To do that you have to kill off DVD. You don't kill off DVD when you have a format war which keeps people from jumping to HD. So the common sense approach is to jump to one side or another. Jumping to HD-DVD most likely would have prolonged the war since both formats would have 50% of the market. Also Warner saw the numbers from the holiday season and saw despite huge price cuts for HD-DVD it made little difference in blu-ray's 2:1 sales ratio of discs. If it had made a difference they may have chosen to continued to support both.

Microsoft could have ended this war a long time ago by including a HD-DVD drive on the 360. Sony's gamble by including blu-ray on the PS3 paid off.
View reply
I bought Blu-ray
by paulsecic January 9, 2008 10:46 AM PST
Enough. Blu-ray won!
In their shoes
by HIPAR January 6, 2008 2:17 PM PST
Wow .. just imagine you had to stand up there and present for Toshiba.

Sure glad I'm not the one who put on the striped jacket, straw hat and taped my cane doing the song and dance.

--- CHAS
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In their shoes
by HIPAR January 6, 2008 2:17 PM PST
Wow .. just imagine you had to stand up there and present for Toshiba.

Sure glad I'm not the one who put on the striped jacket, straw hat and taped my cane doing the song and dance.

--- CHAS
Reply to this comment
Did you even read what I wrote?
by ballssalty January 6, 2008 2:22 PM PST
Collusion is against the law. All the movie studios are supposed to be in competition with themselves. If it's found that ANY of the movie studios that backed Blu-Ray paid WB to ditch HD-DVD that would be COLLUSION and ILLEGAL.
Reply to this comment
Do you even know what collusion is??
by mbenedict January 6, 2008 3:27 PM PST
By legal definition, "collusion" is an agreement between competing parties to perform an illegal act, such as price fixing.

Note: for collusion to happen, the underlying act the parties agree to must be illegal. Examples include price fixing, predatory pricing, tied-products, etc.

However, giving an incentive for a company to support a particular standard or format IS PERFECTLY LEGAL. There are no laws nor regulations which prohibits such an incentive. Therefore by itself such an act cannot be deemed anti-competitive.

Regulators tend to focus on *products* instead of *formats*. For example, it would be illegal if Blu-Ray supporters were required to buy laser diodes exclusively from Sony, or to sell their products at particular price-points, or to "divide up" the B-R market share at fixed percentages. BUT IT IS LEGAL FOR EACH OF THEM TO EXCLUSIVELY SUPPORT BLU-RAY.
View reply
Did you even read what I wrote?
by ballssalty January 6, 2008 2:22 PM PST
Collusion is against the law. All the movie studios are supposed to be in competition with themselves. If it's found that ANY of the movie studios that backed Blu-Ray paid WB to ditch HD-DVD that would be COLLUSION and ILLEGAL.
Reply to this comment
Do you even know what collusion is??
by mbenedict January 6, 2008 3:27 PM PST
By legal definition, "collusion" is an agreement between competing parties to perform an illegal act, such as price fixing.

Note: for collusion to happen, the underlying act the parties agree to must be illegal. Examples include price fixing, predatory pricing, tied-products, etc.

However, giving an incentive for a company to support a particular standard or format IS PERFECTLY LEGAL. There are no laws nor regulations which prohibits such an incentive. Therefore by itself such an act cannot be deemed anti-competitive.

Regulators tend to focus on *products* instead of *formats*. For example, it would be illegal if Blu-Ray supporters were required to buy laser diodes exclusively from Sony, or to sell their products at particular price-points, or to "divide up" the B-R market share at fixed percentages. BUT IT IS LEGAL FOR EACH OF THEM TO EXCLUSIVELY SUPPORT BLU-RAY.
View reply
More of the same . . .
by keoki323 January 6, 2008 2:32 PM PST
Given the similarities in product, I'd think the lower price point would win over the average customer. Here we have a situation where content providers are backing a distribution system / product that earns them more money. In the end the customer loses initially. I say initially because competition will eventually bring price points down, but the intial profit will be a lot more than if they went with HD DVD. What I can't understand is why the average joe went with the higher cost Blu-ray in the first place. Sony obviously did a great sell job.
Reply to this comment
More of the same . . .
by keoki323 January 6, 2008 2:32 PM PST
Given the similarities in product, I'd think the lower price point would win over the average customer. Here we have a situation where content providers are backing a distribution system / product that earns them more money. In the end the customer loses initially. I say initially because competition will eventually bring price points down, but the intial profit will be a lot more than if they went with HD DVD. What I can't understand is why the average joe went with the higher cost Blu-ray in the first place. Sony obviously did a great sell job.
Reply to this comment
I'm disappointed, too.
by tdagman January 6, 2008 3:08 PM PST
I see a lot of Toshiba/Sony Fanboys flaming about this topic, but I can't really understand why. I've seen both formats, and I can hardly tell a difference from my upconvert player - maybe I'm just not an afficionodo - I don't know.

Until they stop making regular DVD's, I'll keep living in the past - where it's a lot cheaper.
Reply to this comment
I'm disappointed, too.
by tdagman January 6, 2008 3:08 PM PST
I see a lot of Toshiba/Sony Fanboys flaming about this topic, but I can't really understand why. I've seen both formats, and I can hardly tell a difference from my upconvert player - maybe I'm just not an afficionodo - I don't know.

Until they stop making regular DVD's, I'll keep living in the past - where it's a lot cheaper.
Reply to this comment
Journos? Pah!!
by seo2seo January 6, 2008 3:41 PM PST
And, of course, of all the journos sipping the free booze and tucking into delicately-cut sarnis, not one - NOT ONE - challenged them on the stupidity of the clone wars?

Who pays these people?
Reply to this comment
No Q&A
by megazone January 6, 2008 6:09 PM PST
Toshiba didn't do any Q&A at their press conference - they didn't allow questions.
View reply
Journos? Pah!!
by seo2seo January 6, 2008 3:41 PM PST
And, of course, of all the journos sipping the free booze and tucking into delicately-cut sarnis, not one - NOT ONE - challenged them on the stupidity of the clone wars?

Who pays these people?
Reply to this comment
No Q&A
by megazone January 6, 2008 6:09 PM PST
Toshiba didn't do any Q&A at their press conference - they didn't allow questions.
View reply
To counter Blu Ray....
by gerrrg January 6, 2008 3:58 PM PST
The boys and girls at Toshiba should have opened up the format to the manufacturers in Taiwan and China from the beginning.

1. They need to attack Blu Ray by jumping onboard the dual-format player, and NOW.

2. They need to offer a rebate system so that older HD-DVD players can upgrade for a lower cost than the retail price.

3. They need to offer a year-long price advantage to their disks to make it only 125% above the cost of a standard DVD.

4. They need to open up the entire library of movies and push those movies in the new HD-DVD format for $10 each, in $50 bundles.

Now, HD-DVD's war is not just with Blu Ray, but with the standard DVD. They need to convert us DVD people over to HD-DVD and not wait until Blu Ray becomes the defacto standard.
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Too little, too late
by megazone January 6, 2008 6:15 PM PST
Both formats have been open to license since the start. But components are more expensive and still in low supply, comparatively, so they haven't attracted the cheap builders yet.

But it is too late now. BD vendors are already announcing players with MSRPs around $300 - which means they'll be selling for much less online - $500 MSRP players already sell for $350 or less. BD is closing the HW price gap quickly, as well as the feature gap.

Toshiba is already subsidizing their players, and always have been. Even taking on loss on HD DVD they haven't been able to win - they just can't afford to spend much more. Who's going to pay for all those promos?

Universal, Paramount, and DreamWorks Animation aren't going to pay to subsidize HD DVD. There is nothing in it for them. They could just as readily switch to Blu-ray. They don't have a real stake in the war. And authoring HD content takes time and money, so there is a limit to what they can get out this year. If they do a bad rush job and just shovel existing content on HD discs, then it will give the format a bad name and not help.

Warner's move is probably the end of the war. Expect to see Paramount and DreamWorks start releasing Blu-ray again in the coming months, followed by Universal caving in and going Blu.
View reply
NO MORE REGULAR DVD
by TrackStar1682 January 8, 2008 9:37 PM PST
If Toshiba really wants to win this, they need to push the backward compatibility issue of HD v BD. If you buy an HD DVD and you put it into a normal DVD player, at least you still get a picture. Blu-Ray can't say that! So why don't they stop making normal DVD's and only make the HD DVD's since they'll still play in any DVD player anyway! Then when people buy another DVD player, they can get HD and enjoy their movies in a whole new way without repurchasing them.
To counter Blu Ray....
by gerrrg January 6, 2008 3:58 PM PST
The boys and girls at Toshiba should have opened up the format to the manufacturers in Taiwan and China from the beginning.

1. They need to attack Blu Ray by jumping onboard the dual-format player, and NOW.

2. They need to offer a rebate system so that older HD-DVD players can upgrade for a lower cost than the retail price.

3. They need to offer a year-long price advantage to their disks to make it only 125% above the cost of a standard DVD.

4. They need to open up the entire library of movies and push those movies in the new HD-DVD format for $10 each, in $50 bundles.

Now, HD-DVD's war is not just with Blu Ray, but with the standard DVD. They need to convert us DVD people over to HD-DVD and not wait until Blu Ray becomes the defacto standard.
Reply to this comment
Too little, too late
by megazone January 6, 2008 6:15 PM PST
Both formats have been open to license since the start. But components are more expensive and still in low supply, comparatively, so they haven't attracted the cheap builders yet.

But it is too late now. BD vendors are already announcing players with MSRPs around $300 - which means they'll be selling for much less online - $500 MSRP players already sell for $350 or less. BD is closing the HW price gap quickly, as well as the feature gap.

Toshiba is already subsidizing their players, and always have been. Even taking on loss on HD DVD they haven't been able to win - they just can't afford to spend much more. Who's going to pay for all those promos?

Universal, Paramount, and DreamWorks Animation aren't going to pay to subsidize HD DVD. There is nothing in it for them. They could just as readily switch to Blu-ray. They don't have a real stake in the war. And authoring HD content takes time and money, so there is a limit to what they can get out this year. If they do a bad rush job and just shovel existing content on HD discs, then it will give the format a bad name and not help.

Warner's move is probably the end of the war. Expect to see Paramount and DreamWorks start releasing Blu-ray again in the coming months, followed by Universal caving in and going Blu.
View reply
NO MORE REGULAR DVD
by TrackStar1682 January 8, 2008 9:37 PM PST
If Toshiba really wants to win this, they need to push the backward compatibility issue of HD v BD. If you buy an HD DVD and you put it into a normal DVD player, at least you still get a picture. Blu-Ray can't say that! So why don't they stop making normal DVD's and only make the HD DVD's since they'll still play in any DVD player anyway! Then when people buy another DVD player, they can get HD and enjoy their movies in a whole new way without repurchasing them.
Toshiba will win if
by Jamie_Foster January 6, 2008 6:08 PM PST
They drop royalty payments on HD-DVD technology. This is what happened with the Cassette (Philips), VHS (JVC) etc.
I think Sony and Toshiba have been foolish. Their technologies are in competition with each, but more importantly DVD. That is not to mention downloads, IPTV, on-demand, and the PVR/DVR.
The only solution to this mess is that the Koreans step in and Samsung and LG clean up with combo-players.
However, Sony as a company is now doomed. Nothing can save its moribound consumer electronics division. They were dethroned by Samsung about 5 years ago. The beginning of the end for them was almost 20 years ago when they decided to buy a record company and a film studio.
Also if you look at the Video Games business. They had a stranglehold on the fifth generation with the Playstation. A stranglehold on the sixth generation with the Playastation 2. In the current seventh generation they have been eclipsed by the Xbox360 and Wii. The PSP is now redundant while the DS is very strong. How strong is the VAIO PC business? Also they just sold the Semi-Conductor business to Toshiba.
We don't even need to mention the failed mobile phone venture with Ericsson or the comatose MP3 Player business. Or the failed connect.com service.
In fact the former King of the CRT world is only still in the TV business because of the s-lcd Ltd venture run by archrival Samsung in Korea.
Sony has no future. Sony is in a desparate state and although I'm an Englishman, they have totally imcompenent and arrogant management in the shape of Stringer and Harrison.
Maybe if they got rid of SonyBMG, sold Sony Pictures, sold the insurance and credit card businesses in Japan and fixed their rotten CE business....
Reply to this comment
I am sorry but you are wrong.
by ralfthedog January 8, 2008 8:11 AM PST
"However, Sony as a company is now doomed. Nothing can save its moribound consumer electronics division. They were dethroned by Samsung about 5 years ago."

Sony has a P/E ratio of 27.01. and pays a dividend of 0.2. I prefer a P/E of 20 or lower, however for a well known consumer electronics company, a P/E of 30 is good.

I like Samsung products, however, they do not have a P/E, nor do they pay a dividend. Sony is the stronger of the two companies.

A general rule of thumb is that a company that is making money and paying a Dividend is not in trouble
Toshiba will win if
by Jamie_Foster January 6, 2008 6:08 PM PST
They drop royalty payments on HD-DVD technology. This is what happened with the Cassette (Philips), VHS (JVC) etc.
I think Sony and Toshiba have been foolish. Their technologies are in competition with each, but more importantly DVD. That is not to mention downloads, IPTV, on-demand, and the PVR/DVR.
The only solution to this mess is that the Koreans step in and Samsung and LG clean up with combo-players.
However, Sony as a company is now doomed. Nothing can save its moribound consumer electronics division. They were dethroned by Samsung about 5 years ago. The beginning of the end for them was almost 20 years ago when they decided to buy a record company and a film studio.
Also if you look at the Video Games business. They had a stranglehold on the fifth generation with the Playstation. A stranglehold on the sixth generation with the Playastation 2. In the current seventh generation they have been eclipsed by the Xbox360 and Wii. The PSP is now redundant while the DS is very strong. How strong is the VAIO PC business? Also they just sold the Semi-Conductor business to Toshiba.
We don't even need to mention the failed mobile phone venture with Ericsson or the comatose MP3 Player business. Or the failed connect.com service.
In fact the former King of the CRT world is only still in the TV business because of the s-lcd Ltd venture run by archrival Samsung in Korea.
Sony has no future. Sony is in a desparate state and although I'm an Englishman, they have totally imcompenent and arrogant management in the shape of Stringer and Harrison.
Maybe if they got rid of SonyBMG, sold Sony Pictures, sold the insurance and credit card businesses in Japan and fixed their rotten CE business....
Reply to this comment
I am sorry but you are wrong.
by ralfthedog January 8, 2008 8:11 AM PST
"However, Sony as a company is now doomed. Nothing can save its moribound consumer electronics division. They were dethroned by Samsung about 5 years ago."

Sony has a P/E ratio of 27.01. and pays a dividend of 0.2. I prefer a P/E of 20 or lower, however for a well known consumer electronics company, a P/E of 30 is good.

I like Samsung products, however, they do not have a P/E, nor do they pay a dividend. Sony is the stronger of the two companies.

A general rule of thumb is that a company that is making money and paying a Dividend is not in trouble
HA HA HA....
by QuietStormX January 6, 2008 9:27 PM PST
I told you so..... Blu-ray all the way. Disc storage capacity is the "REASON" Storage and Recording. Even your local news is upgrading to HD with Sony's XDCAM HD PDW-F355 and dual-layer discs. You can store all that online info on your own disc. (4 Hours +) and rewrite...
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HA HA HA....
by QuietStormX January 6, 2008 9:27 PM PST
I told you so..... Blu-ray all the way. Disc storage capacity is the "REASON" Storage and Recording. Even your local news is upgrading to HD with Sony's XDCAM HD PDW-F355 and dual-layer discs. You can store all that online info on your own disc. (4 Hours +) and rewrite...
Reply to this comment
I'm disappointed in Warner too
by ericnn24 January 6, 2008 10:36 PM PST
...having just bought an HD DVD player during the holiday, then a few weeks later this bomb is dropped.

I don't understand if the market was growing, why they can't continue to support BOTH formats? Why are they forcing us to go to Blu-Ray?

I've never been more upset at a company...
Reply to this comment
I'm disappointed in Warner too
by ericnn24 January 6, 2008 10:36 PM PST
...having just bought an HD DVD player during the holiday, then a few weeks later this bomb is dropped.

I don't understand if the market was growing, why they can't continue to support BOTH formats? Why are they forcing us to go to Blu-Ray?

I've never been more upset at a company...
Reply to this comment
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