DreamWorks needs the go-ahead from Toshiba before it can release Bee Movie on the high-def Blu-ray DVD format.DreamWorks Animation says it is locked in an exclusive deal to distribute DVDs on Toshiba's HD DVD format even though the Japanese electronics maker plans to quit the technology.
Toshiba, which began selling HD DVD players in March 2006, has sold 1 million players and recorders. But this month it declared it would quit the technology after a bitter battle against Sony's rival Blu-ray, which won more studio and retail support.
In August, Viacom's Paramount Pictures and DreamWorks signed exclusivity deals to distribute next-generation films on HD DVD for the next 18 months.
Shortly afterwards, the New York Times reported Viacom executives with knowledge of the deals said Paramount and DreamWorks would get a combined $150 million in financial incentives for their commitment to HD DVD.
DreamWorks plans to release the DVD version of "Bee Movie" next month and is waiting to hear back from Toshiba on how to proceed.
JP Morgan analyst Barton Crockett said the Blu-ray market was still small although he expected DreamWorks would like to have the issue settled by the 2008 holiday season.
"It might mean they'll lose the opportunity to sell 'Bee Movie' on Blu-ray, although the market for Blu-ray is still pretty small and the offset is that they'd get money from Toshiba, which may in fact be more," Crockett said. "But I'm sure they'll like to have this settled by Christmas."
Other HD DVD-backing studios like General Electric's Universal Pictures said this month they will switch to Blu-ray after Toshiba officially pulled the plug on HD DVD.
Toshiba, which began selling HD DVD players in March 2006, has sold 1 million players and recorders. But this month it declared it would quit the technology after a bitter battle against Sony's rival Blu-ray, which won more studio and retail support.
In August, Viacom's Paramount Pictures and DreamWorks signed exclusivity deals to distribute next-generation films on HD DVD for the next 18 months.
Shortly afterwards, the New York Times reported Viacom executives with knowledge of the deals said Paramount and DreamWorks would get a combined $150 million in financial incentives for their commitment to HD DVD.
DreamWorks plans to release the DVD version of "Bee Movie" next month and is waiting to hear back from Toshiba on how to proceed.
JP Morgan analyst Barton Crockett said the Blu-ray market was still small although he expected DreamWorks would like to have the issue settled by the 2008 holiday season.
"It might mean they'll lose the opportunity to sell 'Bee Movie' on Blu-ray, although the market for Blu-ray is still pretty small and the offset is that they'd get money from Toshiba, which may in fact be more," Crockett said. "But I'm sure they'll like to have this settled by Christmas."
yeah now that most companies are going with Blu-ray those ones that are stuck in the HD-DVD format may lose some considerable amount of revenue.
ReplyDeleteBlu-ray is not a popular format right now in Malaysia, some never heard of it :) Maybe it'll become a popular format one day if more Malaysians got their PS3.
ReplyDeleteI am not a techie person but I like your blog. And the fact that you are a New Zealander just like me.
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