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Another day, another studio claims exclusivity in the HD format wars

In the latest saga in the long-running HD DVD vs. Blu-ray battle, Warner Bros. Entertainment has struck a blow to the former camp. The company announced today that it will soon become Blu-ray exclusive with regards to high-definition DVD titles.

According to Warner Bros., the move to support only Blu-ray is a strategic decision aimed at giving consumers what they want.

"The window of opportunity for high-definition DVD could be missed if format confusion continues to linger," said Warner Bros. Chairman and CEO Barry Meyer. "We believe that exclusively distributing in Blu-ray will further the potential for mass market success and ultimately benefit retailers, producers, and most importantly, consumers."

According to the Warner Bros. press release, Warner Home Video will stop releasing HD DVD movies in late May 2008. To add salt to HD DVD’s wounds, Warner Home Video is going to stagger the launches of further HD DVD titles until the late-May cut off period -- standard DVD and Blu-ray movies will be released first, then the HD DVD titles will be released after a "short window."

"A two-format landscape has led to consumer confusion and indifference toward high definition, which has kept the technology from reaching mass adoption and becoming the important revenue stream that it can be for the industry," added Warner Bros. Home Entertainment Group President Kevin Tsujihara. "Consumers have clearly chosen Blu-ray, and we believe that recognizing this preference is the right step in making this great home entertainment experience accessible to the widest possible audience."

The move by Warner Bros. comes four months after Paramount and DreamWorks announced their decision to go HD DVD exclusive. The move prompted "Transformers" executive produce Michael Bay to go on a rampage. "I want people to see my movies 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," exclaimed Bay in late August.

Bay later stepped up his "war talk" in early December and accused Microsoft of sabotaging both HD DVD and Blu-ray. "That is why Microsoft is handing out $100 million dollar checks to studios just embrace the HD DVD and not the leading, and superior Blu Ray," said Bay in December. "They want confusion in the market until they perfect the digital downloads. Time will tell and you will see the truth."

Updated 1/4/2008
Toshiba has formally responded to the Warner Bros./Blu-ray announcement:

Toshiba is quite surprised by Warner Bros.' decision to abandon HD DVD in favor of Blu-ray, despite the fact that there are various contracts in place between our companies concerning the support of HD DVD. As central members of the DVD Forum, we have long maintained a close partnership with Warner Bros. We worked closely together to help standardize the first-generation DVD format as well as to define and shape HD DVD as its next-generation successor.

We were particularly disappointed that this decision was made in spite of the significant momentum HD DVD has gained in the US market as well as other regions in 2007. HD DVD players and PCs have outsold Blu-ray in the US market in 2007.

We will assess the potential impact of this announcement with the other HD DVD partner companies and valuate potential next steps. We remain firm in our belief that HD DVD is the format best suited to the wants and needs of the consumer.

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Clearly chosen ????
By wempa on 1/4/2008 4:27:54 PM , Rating: 4
I'd like to know how he came to the conclusion that consumers have "clearly chosen" Blu-Ray. 99% of people don't have a clue about the next generation after DVD. The other 1% argue back and forth about HD DVD vs. Blu Ray and the latter currently has a slight edge. I don't agree that consumers have clearly decided.




RE: Clearly chosen ????
By FITCamaro on 1/4/2008 4:32:07 PM , Rating: 3
Don't worry. Even if HD-DVD does go away, mass adoption of Blu-ray would still be years away considering the cheapest upcoming Blu-ray players are still a few hundred dollars.


RE: Clearly chosen ????
By wempa on 1/4/2008 4:46:23 PM , Rating: 2
True. I just get a kick out of the BS claims they make. I was actually pulling for HD-DVD even though my wife won a free PS3 in a poker tournament. So, I'm actually better off if BR wins.


RE: Clearly chosen ????
By fifolo on 1/4/2008 9:02:04 PM , Rating: 5
In my day, we'd win our wives in poker tournaments.


RE: Clearly chosen ????
By Bigjee on 1/5/2008 8:34:11 PM , Rating: 2
quote:
In my day, we'd win our wives in poker tournaments.


Yeh everything is high tech nowadays isn't it.


RE: Clearly chosen ????
By logaldinho on 1/7/2008 4:26:23 AM , Rating: 2
well, its going to be interesting for the studio if HDDVD either wins out or gets a split decision with BR. I dont expect toshiba to be friendly on the licensing in the future to those that betrayed an obvious existing relationship.


RE: Clearly chosen ????
By BansheeX on 1/4/2008 6:44:24 PM , Rating: 3
Mass adoption always was years away. I've been trying to explain it to people on this forum for a long time. People need a larger selection of titles, HD televisions, and a real incentive to upgrade all the DVDs they already bought. That's why the price difference between the players themselves didn't really matter. A $100 player still means you're going to have rebuy many of your movies to see the benefit. The PS3 continues to push this niche format into households by the millions as a bonus while Microsoft elected to keep it separate. It helped the 360 get a headstart over the PS3 but ultimately ended up killing HD-DVDs chances. The interesting part is what effect Blu-Ray's victory will have on PS3 sales in the long-run. It can only help them, that's for sure. This is a great day for blu-ray and PS3 fans alike.


RE: Clearly chosen ????
By Spuke on 1/4/2008 6:48:54 PM , Rating: 2
Why do you need to rebuy DVD's? The upconverter works just fine. I don't plan to rebuy anything except MAYBE The Matrix Trilogy. Other than that, I'm keeping all my DVD's.


RE: Clearly chosen ????
By natebsi on 1/4/2008 6:56:49 PM , Rating: 4
For newer titles, there is no comparison between HD/BD and an upconverted dvd. None.
I would say, though, that "need to rebuy" is a bit much.


RE: Clearly chosen ????
By FITCamaro on 1/6/2008 3:41:48 PM , Rating: 3
It doesn't matter. Just because a better version is out, doesn't mean you have to rebuy everything. When the day comes that I do get an HD player, I'm not going to rebuy all my DVDs. Sure certain movies I will like the complete Star Wars trilogy. But most of it will stay on DVD.


RE: Clearly chosen ????
By EntreHoras on 1/4/08, Rating: -1
RE: Clearly chosen ????
By BansheeX on 1/4/2008 7:21:05 PM , Rating: 2
quote:
Why do you need to rebuy DVD's? The upconverter works just fine. I don't plan to rebuy anything except MAYBE The Matrix Trilogy. Other than that, I'm keeping all my DVD's.


You have to rebuy DVDs if you want to watch an HD movie, even if you have an HD player. You do realize that they make upconverting DVD players that are cheaper than HD-DVD players, right? If you aren't going HD, why did you pay more for an HD-DVD player? Your rebuttal makes no sense.


RE: Clearly chosen ????
By BansheeX on 1/4/2008 7:26:50 PM , Rating: 2
Clarification: "rebuy movies."


RE: Clearly chosen ????
By Farfignewton on 1/5/2008 1:41:31 AM , Rating: 2
quote:
You have to rebuy DVDs if you want to watch an HD movie, even if you have an HD player.


No, I only have to repurchase my dvd movies if I want to watch THOSE movies in H.D. I seriously doubt most people who have or will buy an H.D. player intend to re-purchase more than a few of their particular favorites in H.D. The DVDs I have are fine, but from now on it's H.D. for me.


RE: Clearly chosen ????
By pcbean on 1/7/2008 10:50:46 AM , Rating: 2
Years? Really? Considering that Both Blu-ray and HDDVD players have fallen over 50% in a twelve month period, I'd say reasonably priced players are a mere year away at this rate.

Although I'd agree it will be years before any format can catch DVD sales, to say that its because player prices are the main hinderance is silly.


RE: Clearly chosen ????
By Malhavoc on 1/4/2008 5:19:54 PM , Rating: 2
There was an article here on DailyTech before the holidays that WB would make decision based on holiday sales of HD media. If I recall, it appeared to be a guaranteed win for Blue-ray since alot of the HD-DVD players would be received for Christmas and media-wise Blue-ray was ahead in sales.


RE: Clearly chosen ????
By Gio6518 on 1/5/2008 12:08:07 AM , Rating: 2
quote:
There was an article here on DailyTech before the holidays that WB would make decision based on holiday sales of HD media. If I recall, it appeared to be a guaranteed win for Blue-ray since alot of the HD-DVD players would be received for Christmas and media-wise Blue-ray was ahead in sales


and there werent and BLU-Ray players or PS3's given as christmas presents ?


RE: Clearly chosen ????
By Malhavoc on 1/5/2008 1:20:48 PM , Rating: 2
People don't usually buy media for things they don't have yet. The Christmas hardware sales were unlikely to swing the tide from Blu-Ray media sales lead to HD-DVD media sales lead before the end of the holidays.


RE: Clearly chosen ????
By neilrieck on 1/5/2008 8:22:58 AM , Rating: 2
One huge Christmas title from Warner Brothers was "Blade Runner - The Final Cut" which fans had been wating for since 2001. Can you imagine the complaints from BR fanatics when told that BR would only be available in one HD format but not the other? Warner Brothers maximized profits by publishing Blade Runner in both HD-DVD and Blu-ray. Their recent decision to only publish on Blu-ray now limits their potential market size.


RE: Clearly chosen ????
By othercents on 1/7/2008 1:57:39 PM , Rating: 3
quote:
Warner Brothers maximized profits by publishing Blade Runner in both HD-DVD and Blu-ray.

I believe that all production houses are loosing money on the HD format because of the low volume and they loose more money if they are competing in both formats. This is why many of them are now choosing sides. They want one format, so that they can ramp production up to speed to reduce costs and get rid of DVD production.

quote:
Their recent decision to only publish on Blu-ray now limits their potential market size.

Actually their market size would be larger than BR and HDDVD together if there was only one format. Granted for the short term they are limiting their market size, but in the long run less people will be confused and just buy the one HD format making a larger market. Warner Brothers is banking on the fact that they choose the right format.

Other