HD DVD paid Paramount $150 million for 18 months

[steve69bez]

I just read this on blu ray.com

NY Times Confirms $150M Pay-off to Paramount

Posted August 21, 2007 by Josh

Paramount The NY Times has confirmed via two Viacom executives, who spoke on the condition of anonymity, that Paramount has received a $150M pay-off to support HD DVD exclusively for a period of 18 months. The $150M is comprised of cash and future marketing deals. Also re-confirmed is that the deal includes no films directed by Steven Spielberg.

Whats the point in that? No Indiana Jones for hd as yet then! Why didn't they just go with both formats instead of one bit sly on the hd dvd front if you ask me

[cobbler]

I expect the point is is they now have Paramount exclusively for the next 2 christmas holiday seasons, big selling times.

[KeanosMagicHat]

Originally Posted by steve69bez

Whats the point in that?

I think you answered that question in your own thread title.

There was an old dance track whose chorus sums up this situation perfectly,

"Money talks, mmm-hmm-hmm, money talks

Dirty cash I want you, dirty cash I need you, woh-oh"


____

EDIT - I also don't think it's any coincidence that this deal was announced in the same week that it was revealed that Blu-Ray is still outselling HD-DVD 2 to 1 in the US.

http://www.reuters.com/article/techn...19176920070815

[dbs2]

Originally Posted by steve69bez

Whats the point in that?

IMO HD-DVD had to do something, and for Paramount instant/guranteed profit is hard to turn down...

[SeedyR]

But $150 million is nothing to the film studios. Surely if Paramount had stay dual format they would have made more than that in the next 18 months?

[featherhall]

already a previous thread on this subject

[Deepcore]

Full article here :

http://www.nytimes.com/2007/08/21/te...jFMTnKD3xcUZIQ

Interesting bits that were missed.

The incentives will come in a combination of cash and promotional guarantees. Toshiba, for instance, will use the release of “Shrek the Third” as part of an HD DVD marketing campaign.

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.

[FOXCLOSE]

Originally Posted by Craigy Boy

But $150 million is nothing to the film studios. Surely if Paramount had stay dual format they would have made more than that in the next 18 months?

Apprantly, they must have thought not! These deals usually have a get out clause on them anyway.

[Adam_uk]

Keep telling yourself that

[Greg]

Already a thread on this