Sony Paid Warner Bros. $400 Million to Go Blu-Ray?
eldavojohn writes "How much would you pay to be the leading video media technology right now? Is $400 million too much? Sony didn't think so and this article speculates that's how they won the Hi-Def format war. 'With billions of dollars in global sales at stake, experts had predicted the Toshiba-Sony battle would go on for years - not unlike the 1980s battle of videotape formats between VHS (Matsushita) and Betamax (Sony). That war lasted a decade, leaving Sony battered and humiliated. So how did this epic battle come to such an abrupt end? The answer lies in part with the bruising Sony experienced with Betamax, which, like Blu-ray, was also the better product on paper.'"
Now all those woffling on about free market eat your own hats.
If you mod me down, I will become more powerful than you can imagine....
Next they'll be saying Sony would put rootkits on CDs or something...
Absolute power corrupts absolutely. indymedia
I don't even think the market is ready for HD, we barely have downloads that offer DVD quality. The hardware feels a bit immature in my opinion, with perhaps the exception of the PS3. However my personal experiance with stand alone players comes to one thought, "Why the fuck am I waiting for my movie player to boot up?"
Now call me when we have the bandwidth to stream HD, and we're not paying a premium for discs and when we all have large screen hi def tvs that actually can utilized the enhanced resolution.
That being said, let Sony blow their wads.
I'm sick of following my dreams. I'm just going to ask where they're goin' and hook up with 'em later.
... and it involves a $400M cash payment. No need for question marks for these gnomes.
Is it just my observation, or are there way too many stupid people in the world?
First to sell my HD-DVD, listed as Blu-Ray, on ebay.
Absolute power corrupts absolutely. indymedia
Has anyone considered the remote possibility that Blu-Ray won out because it was the better of the two formats? It stores more data. From an end user perspective, isn't this pretty much the #1 thing that matters?
Granted, geeks know that the DRM on blu-ray is harsher than that on HD-DVD, but if your just joe Movie Watcher does it really matter?
Just a thought.
NewslilySocial News. No lolcats allowed.
What remains a mystery is just how big a push Warner needed to pick sides. Analysts say Sony only prevailed following a heated bidding war against Toshiba, with the reward reaching as much as $400-million (U.S.). Neither side has confirmed the size of any bids or payments.
Other than analysts' speculation of payoffs, there's nothing that could be considered fact in this article. Pass.
Interested in open source engine management for your Subaru?
A couple points:
(1) The betamax people like to claim that betamax was "better" than VHS. This is simply not true. It had some features that were better than VHS, but VHS had features that were better than Betamax. It all came down to the fact that VHS was cheaper and allowed for longer record times.
(2) The amount of money Sony just sent is proof that Blue-Ray sucks.
VHS had longer recording times, and that is what the customers wanted. This is proved by the fact that VHS "won", and ergo VHS was "better". Betamax did have better video quality, but it was not "better" in every dimension.
Should read:
Really, other than the really obvious things we all know (Sony won the format war), there aren't any facts in the article, just speculation and some rather weird ideas from a variety of sources. Like Professor Xavier Dreze and his suggestion that "PlayStation buyers
So we should starting calling them $ony?
VHS won the consumer war over Betamax, but Betacam (that used the same tape cassette) went on to become the dominant professional video format.
Now BluRay won the consumer war, but it is unclear if the professional disk version called XDCAM will win the professional format, as pro video folks moving beyond tapes are also looking at flash-based systems like DVCPRO P2 , and even Sony now offers professional XDCAM EX on SxS flash memory.
A lot of people don't realize that Blu-Ray is more than just Sony, there are three levels of membership in the Blu-Ray Association. Currently there are 18 board members (top level), 65 contributers, and over 200 members. Sony is the obvious front company for the association because of their reliance on the technology for the PlayStation 3, but there are a lot of groups that have a big stake in the project too.
Maybe Sony did pay Warner the big bucks for the commitment, but I'd be surprised if they're the only ones making deals like this.
http://en.wikipedia.org/wiki/Blu-ray_Disc_Association
Reviewing just the first hour of video games.
Ummm old and unsubstantiated/busted rumor:
The Original source is Dan Lindich, he has since edited the story to remove all references to money changing hands. Read some of his blog, he hates Blu-Ray with a passion and has always recommended HD-DVD, still doesn't recommend Blu-ray, even it won the format war, here is his now eidited story:
http://www.soundadviceblog.com/?p=758
From Digital bits:
"As it happens, I've actually spoken about this today with Fox's senior VP of corporate and marketing communications, Steve Feldstein, who echoed something Warner's Ron Sanders has also said in recent days: "The kind of money they're talking about [in these stories] isn't worth jeopardizing a multi-billion dollar business." In other words, payoffs would not have impacted Fox and Warner's decisions. Feldstein also told me that when The Pittsburgh Post Gazette piece broke, he contacted Lindich immediately to let him know that he was being misled by someone. When Don posted the same piece on his own blog, it was edited to reflect this. Specifically, the references to $120 million and $500 million payoffs were gone - something that's worthy of note."
http://www.thedigitalbits.com/mytwocentsa149.html
Basically bitter Fan can't see writing on wall, sees conspiracy instead.
The facts were Blu Ray disks outsold HD-DVD disks for every single week of 2007, by the last weeks of 2007 there were more standalone Blu Ray players sold than HD-DVD players sold, despite HD-DVD being massively cheaper. HD-DVD was toast before Warner announced.
Slashdot, all the quality of Digg, without the quantity.
I wonder if Nintendo and Microsoft see the opportunity for a semi-proprietary disc format here. They've got a stable and cheap format that's already gone through all it's development phases and is proven to hold 50 gigs. Five years from now getting a hold of a consumer level HD-DVD burner will be a real rarity, so piracy would be really hard. Blue-Ray may have won the movie format war, but there's still a lot of potential in this format by virtue of it's soon to be obscurity.
Actually, 200GB EIGHT layer BluRay discs have been produced in the testing lab (which is the only place where those 3-layer HD-DVDs ever existed. The 8-layer BDs wasn't in response to competition, either. BR was designed from the beginning to support that many layers, which is why the first data layer is close to the surface instead of being sandwiched in the middle like HD-DVD.
Of course, neither the 3-layer HD-DVDs or the 8-layer BDs are relevant to the format war, because there were never any plans to use either for movies and set-top players can't read them, anyway.
Even if this specific rumor turns out to be false, the broader implication that Sony was willing to sacrifice to ensure the success of Blu-Ray is undeniable. For a while Sony's use of a Blu-Ray player in PS3s was considered a blunder. The fact is, Blu-Ray is more important to Sony than the PS3 was. If coming in behind their competitors in this video game generation is what it cost to make Blu-Ray the HD standard, Sony is perfectly happy with that. Of course, there remains the possibility that Blu-Ray will turn out to be a competitive advantage for the PS3, in which case it would be so much the better. The point is, from Sony's perspective, it didn't matter if the Blu-Ray turns out to be good for the PS3 or not, because they consider it a win either way. If it is, they're obviously happy, but even if it isn't, they're still happy because they still win by massively inflating Blu-Ray's install base. For Sony, Blu Ray>PS3.
In contrast, to MS the 360 was a much higher priority than Toshiba's HD-DVD. MS has been trying to get into our living rooms for over 10 years now. (Bill Gates was already obsessing about it in The Road Ahead and that book was written 13 years ago.) All things being equal they'd prefer Toshiba to win and Sony to lose, of course, but it wasn't important enough to them for them to risk 360's success on.
Every time there's an article about Blu-Ray someone always trots out the point that Blu-ray is not, in fact, Sony's, but is actually from a larger group of manufacturers and media companies.
Well, yes, there are a lot of members, but Blu-ray is still Sony's. They not only have the most invested in Blu-ray, they have the most to gain:
1) They developed the hardware platform entirely on their own and gain royalties from the format's sales
2) The success or failure of their gaming console is tied inexorably to the success or failure of the format
3) The decision to splinter off from the DVD Consortium, following the DVD Consortium's choice of HD-DVD as the next format (supposedly chosen because it would be ready sooner), was entirely theirs. Broader industry support came after that decision, and was reportedly driven by studio fear of Microsoft. Without Sony, there's no format war.
There's a very very good reason that people associate this format with Sony - it's their format, it's just supported by other people. Lots of people support the CD format but that doesn't make it any less Sony / Phillips' format.
I'm sick of same-sex corporations mating with each other. It's wrong, it's paganism, it's not what we believe in!
Hmmm. From now on, no more corporations telling each other to "bend over"?
Dunno.
"The biggest problem with communication is the illusion that it has taken place."