HD-DVD vs. Blu-Ray: The Battle Rages On

by Christopher Campbell Aug 22nd 2007 // 1:05PM

Filed under: Paramount, Paramount Classics, Tech Stuff, Dreamworks, Steven Spielberg, Home Entertainment, Paramount Vantage

Paramount Pictures shocked Hollywood this week by announcing it would no longer distribute its movies in the Blu-Ray format. Instead, Variety reports the studio would have an exclusive deal with HD-DVD, a partnership that would include films from DreamWorks Animation (like Shrek the Third). Since 2005, Paramount had been releasing videos in both formats while DreamWorks had not released any high-definition discs in either format. With a large consensus in the biz decidedly declaring Blu-Ray the winner in the hi-def war, it was definitely strange to hear about Paramount and DreamWorks' decision. However, according to the New York Times, the studios are receiving $150 million in incentives to stay exclusive for the next 18 months, or through Christmas 2008. The Times couldn't reveal where the incentive was coming from, though, only clarifying that Microsoft claims to have not been involved in such a deal.

One film that won't be released in HD-DVD is Indiana Jones IV, which Paramount puts in theaters next Memorial Day. The studio's deal with HD-DVD doesn't include films directed by Steven Spielberg. None of the Indiana Jones movies, nor Saving Private Ryan nor War of the Worlds will be put on HD-DVD disc. This isn't too unusual, as Spielberg actually favors Blu-Ray, though it took him a long time to jump aboard the hi-def wagon. His first hi-def video release is scheduled to be Close Encounters of the Third Kind, which Sony releases on Blu-Ray this November. According to Spielberg spokesman Marvin Levy (also a DreamWorks marketing exec), there are currently no plans for more of the director's films to hit either hi-def format. He also pointed out Spielberg's still-active support for Blu-Ray. However, a short film by Spielberg included as a segment of Twilight Zone: The Movie gets both a Blu-Ray and an HD-DVD release in October. Supposedly the Spielberg stipulation means that the director can put his Paramount and DreamWorks titles on Blu-Ray if he wants. As for his Universal titles (including Jaws, Schindler's List, E.T.), we probably won't see them on hi-def for a long time, because that studio is also HD-DVD exclusive.

Speilberg's work as producer isn't marked by the fine print, and so Transformers will be released on HD DVD by Paramount. I don't know if this is upsetting to Spielberg, but it was apparently a big pain for the movie's director, Michael Bay. Regarding his disappointment with Paramount, Bay posted the following note on his site's message board : "I want people to see my films in the best formats possible. For them to deny people who have Blu-Ray sucks! They were progressive by having two formats. No Transformers 2 for me!"

Obviously the guy overreacted and maybe was even drunk posting (hey, we've all done it). Or he just wants to be in agreement with Spielberg. That message has since been deleted and replaced with this new note:

Last night at dinner I was having dinner with three blu-ray owners, they were pissed about no Transformers Blu-ray and I drank the kool aid hook line and sinker. So at 1:30 in the morning I posted - nothing good ever comes out of early am posts mind you - I over reacted. I heard where Paramount is coming from and the future of HD and players that will be close to the $200 mark which is the magic number. I like what I heard.

As a director, I'm all about people seeing films in the best quality possible, and I saw and heard firsthand people upset about a corporate decision.

So today I saw 300 on HD, it rocks!

So I think I might be back on to do Transformers 2!

Well, at least by the time Transformers 2 hits video, the 18 month promise will be over and maybe the movie will be released on both formats. I still haven't really watched a movie on a hi-def television let alone on either Blu-Ray or HD DVD, so I can't argue a case for which format should win the war. All I know is that Paramount and DreamWorks now face the fact that their HD DVD discs will not be rented at all Blockbuster stores and that Jeff Katzenberg (CEO of DreamWorks looks pretty silly after statements he made in March. "Blu-Ray and HD DVD are a niche market," he told Wall Street analysts. "They're not going to become the next platform. I think for the general consumer, there is not a big enough delta between the standard DVD in terms of where it is today and the next generation."

But he must think for the general stock holder, $150 million makes the niche market worth pursuing.

[Thanks goes out to /Film for the Michael Bay quotes]

11 Comments

Tags: blu-ray, cinematical, film, HD DVD, HD-DVD, michael bay, movie

Reader Comments (Page 1 of 1)

8-22-2007 @ 2:12PM

chuck said...

it's like Sony isn't pumping money into BluRay supporters! don't be silly.

8-22-2007 @ 2:30PM

soundoftheground said...

interview with Paramount CTO, Alan Bell:

"PCW: Will this exclusive period extend for a limited time, or is this an indefinite arrangement?

Bell: At this moment in time, it's an indefinite commitment..."

http://www.pcworld.com/article/id,136253-c,dvdtechnology/article.html

8-22-2007 @ 2:35PM

YouFaceTheTick said...

Most of the BR supporters are actually on the board.

8-22-2007 @ 3:29PM

Peter said...

Your presentation of the Spielberg clause is misleading. All it means (according to the article cited) is that his films are outside of the HD DVD exclusivity agreement; when/if any of them come out, they'll be eligible for a dual format release. Granted, they don't have to go one way or the other, but neither format is out of bounds in a legal sense.

Spielberg does have an abnormal amount of control over his films, however, so if he really does remain a BRD loyalist, that is his call. He just hasn't been mandated to release on HD DVD. I'm fairly confident that the market will make the decision for him, so who ever hits that $200 sweet spot first has it in the bag. Right now, Toshiba (aka HD DVD) has that all but guaranteed.

Anyways, yesterday's announcement was an exciting bit of news. For nerds, it was a huge deal, but I think most people who don't give a damn one way or another fail to realize its importance. The longer this format war goes on, the faster prices will fall on both hardware and discs on both sides. The consumer actually owes Universal a "Thank You" for holding out this long. Without them, and now Paramount, prices of either HD DVD or Blu-ray would still be outrageous. By Christmas they'll be practical and by next Christmas players and discs will be downright pedestrian.

8-22-2007 @ 4:43PM

Christopher Campbell said...

I don't think I was being misleading. With Spielberg's favoring Blu-Ray, we aren't going to be seeing those titles on HD-DVD. I understand that he can put his Paramount and DreamWorks titles on Blu-Ray if he wants.

8-22-2007 @ 6:16PM

Peter said...

I was referring to your post implying it would never happen because of the clause, which isn't the case.

Friendly wager that we will see Spielberg titles on HD DVD by Christmas '08? :p

8-22-2007 @ 7:39PM

Martin said...

It just seems really, really odd that Spielberg gets out of this contract. Which implies that he knew it was happening before hand. Yet the first High-Def release is on Blu-Ray.

That just doesn't sound good to me for Paramount or Dreamworks SKG,

And remember he is the S in SKG.

This just doesn't mesh well to me.

MCT Images Blog

8-22-2007 @ 8:13PM

Martin said...

I also agree with Peter. Most of the country doesn't even consider this news. If anything all this did was extend the format war.

http://blog.mctimages.com

8-22-2007 @ 11:52PM

Christopher Campbell said...

Okay, Peter, you have a bet. If Spielberg doesn't have anything on HD-DVD by next Christmas, you owe me your first born child. Just kidding. Friendly wager.

8-23-2007 @ 7:22AM

Michael said...

Christopher, I agree with Peter on this one. All the clause indicates is that Spielberg's films aren't included in the mandatory "exclusive to HD-DVD" agreement. I would certainly think that while if he prefers BD to HD then he would retain some ability to have his films released on that format however I would also believe that Paramount would retain some ability to also release those same films on HD. That to me would be the logical end of this agreement and would tend to satisfy both side's needs. I've not read anything that specifically outlines Spielberg's films NOT being released on HD, only that they are not included in the exclusive deal and that he has the ability to release them in BD if he so chooses. That to me speaks volumes.

I must say that it is interesting to me that such high profile directors appear to be so ignorant about the very thing that keeps bringing in millions of dollars to them. One would believe that they would at least keep up with the coming trends and that with their finances they could afford to dabble in the whole HD experience much more easily than you or I can. Instead, they are coming across as ignorant buffoons who haven't even bothered to look at both formats for themselves. They've been swayed by the opinions of others and TOLD what to believe instead of looking at it objectively and seeing for themselves.

I'm a Michael Bay film fan (eh, so sue me but I liked both Armageddon and Bad Boys II) and he just came off as an ignorant prick with both of his blog comments yesterday. First off that he was swayed by the BD friends while out that night and then that he saw 300 in HD and "it rocked!" Well no shit Sherlock! What did you expect, that it would look like crap??? As I said, it just makes these high profile directors look like either idiots or studio shills and neither one of those is something I'd want to be associated with me.

Expect more jaw-dropping ignorance over the coming months as the format war heats up even further.

http://www.myspace.com/scoobarama

10-09-2007 @ 8:19AM

Randall said...

I think Spielberg is smart to have more support for Blu-Ray then Hd-Dvd. Toshiba got so desperate since Blu-Ray is kicking Hd-Dvd's ass 2 to 1 and Universal pictures movies are not bringing in much money that they had to go so far as to offer Paramount $150 million dollars that their buyers have spent for them and use it to make Paramount Hd-Dvd exclusive thats so sad and pathetic that they had to be that desperate. 300 Hd-Dvd looks no different in Blu-Ray form Michael just happened to watch the hd-dvd version simple as that. Michael is a freaking prick first he says that he hates the idea of Paramount going hd-dvd exclusive and the very next day he says that oh i was wrong, i overreacted. I think that is a bunch of B.S. and I think either Toshiba or Paramount must have gave him a good amount of money to make him change his mind like that. He is an ass. I am looking forward to seeing Steven Spielberg movies in Blu-Ray next year because between Michael Bay and Steven Spielberg, Steven is the better director anyday even though i must admit Pearl Harbor was directed very well.