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NYT Confirms Movie Studios Paid to Support HD DVD

An anonymous reader writes "The New York Times has confirmed the story that Paramount and DreamWorks Animation were paid $150 million for an exclusive HD-DVD deal that will last 18 months. 'Paramount and DreamWorks Animation declined to comment. Microsoft, the most prominent technology company supporting HD DVDs, said it could not rule out payment but said it wrote no checks. "We provided no financial incentives to Paramount or DreamWorks whatsoever," said Amir Majidimehr, the head of Microsoft's consumer media technology group.'" We discussed Paramount's defection on Monday.

8 of 441 comments (clear)

  1. not a big deal? seems like a double standard to me by wooden+pickle · · Score: 5, Interesting

    My initial reaction too was "Big deal! No story here!" But then I got to thinking. Is this really different than Microsoft using various incentives to get governments/schools/other customers to buy Microsoft products? Does it just feel different because it's a bunch of big evil corporations using shady practices to try and outdo each other?

    I've been saying since this format war started though that if someone REALLY wants to win, they should just pony up a ton of money to get George Lucas to release the unmolested, Greedo-shoots-first Trilogy in their format.

  2. Unfair.. and I'm a HD-DVD supporter.. by brxndxn · · Score: 4, Interesting

    This is unfair competition, imo. Here's why...

    You should never be able to pay a customer to specifically exclude a competitor. For example.. If you're paying a company a sum amounting to $10 to go with your product Y that costs $100 and exclude product X, it would mean your competitor would have to sell at $90 in order to compete - assuming both products essentially do the same thing. It artifically lowers the competitor's price... kind of like what has happened with AMD and Intel.

    --
    --- We need more Ron Paul!
  3. Re:Yeah... So? by Divebus · · Score: 3, Interesting

    And in 18 months, Paramount will [happily] open the doors to Blu-ray. At these market penetration levels for either format, it doesn't matter much yet but by then they may be tired of having the only next-gen DVDs sitting on the shelves collecting dust. You never know.

    Isn't it ironic that the consumer vigorously defends his right to "choice" but won't make a move until the choice is made for him?

    --

    Most of the stuff on /. won't survive first contact with facts.
  4. Region coding by orangepeel · · Score: 5, Interesting

    I'm glad someone's making a revitalizing effort on the part of HD-DVD, even if it means handing out buckets of cash. My biggest reason for supporting HDDVD over BluRay (other than a long-time dislike for Sony) is that HDDVD does not have any form of region coding, while BluRay does. I haven't seen that point raised here on Slashdot before, so I'm at the point of wondering if A) it's even correct, and B) if I'm really the only one who cares.

    We've seen big companies embrace globalization when convenient many times before, and then immediately turn around and implement artificial barriers so that consumers can't take advantage of that same global market (the stories here on Slashdot a few years ago about textbook manufacturers come to mind, where they would sell English versions of their textbooks in foreign countries at hugely discounted prices, and then fight over efforts of other companies and individuals to make those same books available back to customers in the USA).

    Region coding ought to be universally despised. So far as I know, with HD-DVD I don't have to worry about it. But Sony, showing their true stripes once again, embraced it with BluRay.

    --
    Whoever designed level 61 in Frozen Bubble is a sadistic bastard.
    1. Re:Region coding by AndyboyH · · Score: 3, Interesting

      precisely the reason I went HD-DVD too.

      I live in the UK and I've imported over $3000 in Region 1 DVDs from the US/Canada. In Blu Ray happy DRM land - I can't. For I'm lumped in with Africa and Australia. I can't even import Japanese DVDs because they've defected from DVD region 2 (same as the UK) to BluRay region 1 (same as the US)
      Meanwhile my HDDVD collection is growing impressively due to the strong pound/dollar exchange rate, and the readily available set of import sites that offer around 40% discount off MRSP.

      Jumping into bed with MS may kill my little internal Apple fanboy a little, but with an xbox 360 that doesn't even implement HDCP for 1080p, and a very cheap HDDVD addon that can also be used on Windows (if and when I boot camp) - Blu Ray just cannot compete, even if they never ever used their region locking scheme.

      --
      Baka Drew
  5. Re:So what? by DrXym · · Score: 3, Interesting
    I think the big deal is being made because Microsoft is doing this to fuck up both formats. It really doesn't want Blu Ray or HD DVD to win the format war. It's only siding with HD DVD because in doing so draws out the battle even longer. The theory for Microsoft is that while Toshiba & Sony and their friends bleed each other dry, Microsoft can cleanup with download services and associated technologies such as codecs, DRM and mastering software.

    I predict lawsuits out of this. There is no plausible technical reason that two studios would simply jump ship like that unless they were bribed. I could see them go neutral possibly, but completely switching at the same time? This is has anticompetitive behaviour written all over it.

  6. Re:Yeah... So? by TummyX · · Score: 3, Interesting

    I already made my choice: regular DVD is fine.

    Spoken like someone who doesn't own a a hi-def television.

  7. Re:Yeah... So? by boogybren · · Score: 3, Interesting

    One thing we have now however that wasn't prevalent in the beta/vhs days is units that are both blue ray/hd dvd compatible on one drive.

    It will be interesting to see how that affects the market. We see something similar now with Microsoft's proprietary audio/video and iTunes audio/video. Both are used, yet we don't really talk about which format will win here.