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Warner blames recession for Blu-ray Disc deal necessity

Upon Warner’s startling announcement just before the opening of CES that it would be releasing high-definition movies exclusively on Blu-ray Disc, many were questioning why a previously format neutral company would voluntarily shun the HD DVD market.

Warner made it clear that the deal with Blu-ray Disc did not involve exchanges of large sums of money, so then the motive must be something else.

Speaking to Reuters, a top executive said that Warner’s decision to “go Blu” was fuelled by fears of a deteriorating U.S. economy, falling DVD sales and even rising gas prices.

"We've typically been recession proof," Warner Bros Entertainment Group President Kevin Tsujihara said. "But the thing that we saw in the fourth quarter...was gas prices beginning to affect sales. And since we're considered an impulse purchase, it's beginning to impact us."

Tsujihara added that Warner’s decision to support Blu-ray Disc was to help end the customer and retailer confusion over high-definition home video formats before economic conditions worsened.

While Toshiba still maintains that it’s not over for HD DVD just yet, Warner’s decision has already sent shockwaves throughout the video industry.

Paramount, which signed an exclusive deal with HD DVD last summer, is believed to be re-examining its position with high-definition movies and may publish on Blu-ray Disc again soon, despite statements regarding its current strategy.

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gas price?
By nace186 on 1/10/2008 5:06:04 PM , Rating: 5
How does gas price affect their decision?




RE: gas price?
By daBKLYNdoorman on 1/10/08, Rating: 0
RE: gas price?
By Mitch101 on 1/10/2008 5:18:06 PM , Rating: 5
As gas prices rise consumers have less money to spend. With less money to spend they cant afford higher priced Blu-Ray players and thus buy HD-DVD players instead because of the cheaper price tag. OMG Wait did we back Blu-Ray? Darn I did it again just like I did when I voted in Florida. God were stupid.

I would imagine the rising gas prices would effect movie sales because consumers would have less money to spend. But what do I know.


RE: gas price?
By TMV192 on 1/10/2008 5:49:57 PM , Rating: 4
they should also blame the rising milk prices


RE: gas price?
By 16nm on 1/10/2008 6:09:40 PM , Rating: 5
LOL. Yes, the high cost of ice cream in particular is really biting into my HD-DVD fund.

I must say that dropping HD-DVD because of gas prices does not make any sense at all. If this were true, they would have dropped all the high definition disc formats all together since DVD is cheaper. I mean come on, if people were so strapped for cash, they would settle for DVD. No, there's more to the story than what Warner is telling us...


RE: gas price?
By JAB on 1/10/2008 7:13:06 PM , Rating: 2
You dont just pay for the high gas yourself but everyone in the supply chain will raise there cost to reflect the increased cost of doing business and they will pass it along.

It doesn't matter why though there certanly does seem like a softening of the economy and the entertainment money is often the first place to tighten the belt.


RE: gas price?
By jtemplin on 1/10/2008 7:37:05 PM , Rating: 2
All the people who don't understand how disparate economic forces or more broadly--societal forces, can effect other seemingly unrelated outcomes...read Freakonomics!


RE: gas price?
By 16nm on 1/10/2008 7:39:42 PM , Rating: 5
So why didn't they drop BLu-ray and support HD-DVD?? That's the question and there is more to it than Warner is letting on to.


RE: gas price?
By Darkskypoet on 1/10/2008 9:48:07 PM , Rating: 3
Essentially, Warner has other reasons for thinking Blueray will win... Or, perhaps there is something we aren't being told... However, the main reason is to get a winner in the HiDef battle before the softening hits too badly... Otherwise, with declining disposable income... (yes related to fuel prices and ice cream, and food stuffs (ethanol)) the 'oh better wait to see who wins argument gets stronger and stronger as there is declining money to gain utility with.

So for whatever reason they want Blueray to win, they want a winner, and the uncertainty to end so the HiDef market doesn't grind to a Halt in the US as the economy softens.

Seeing the the US is under this cloud, that may harm all of NAFTA countries, which means Japan and Europe become key markets for High Def. If Blue ray acceptance rates are much higher in Japan and EC, then I'd go Blue ray, and end it now to have a better position in the NAFTA market with that uncertainty removed.


RE: gas price?
By deeznuts on 1/11/2008 12:32:30 AM , Rating: 5
Ummm, because they were selling twice as many BD disks than HD DVD?

Did you guys read the article? You're wondering how gas prices and economic deterioration affected their decision?

quote:
Tsujihara said the company needed to quickly erase consumer and retailer confusion over dueling DVD formats before economic conditions deteriorated.
That's why with a lot of people standing by until the war is over, well Warner felt they had to expedite the end of the war before economic conditions got worse.


RE: gas price?
By 16nm on 1/11/2008 3:43:44 PM , Rating: 2
quote:
Ummm, because they were selling twice as many BD disks than HD DVD?


That's obviously the reason! But why didn't they come out and say that? What's all this baloney about gas prices and the possibility of a recession have to do with it? It seems very odd to me.


RE: gas price?
By RedStar on 1/12/2008 9:45:19 AM , Rating: 2
and how many more DVD's are they selling than both Blue ray and HD dvd combined?

lol :)


RE: gas price?
By deeznuts on 1/11/2008 12:32:30 AM , Rating: 2
Ummm, because they were selling twice as many BD disks than HD DVD?

Did you guys read the article? You're wondering how gas prices and economic deterioration affected their decision?

quote:
Tsujihara said the company needed to quickly erase consumer and retailer confusion over dueling DVD formats before economic conditions deteriorated.
That's why with a lot of people standing by until the war is over, well Warner felt they had to expedite the end of the war before economic conditions got worse.


RE: gas price?
By Master Kenobi (blog) on 1/11/2008 8:21:18 AM , Rating: 1
This is hardly going to expedite the end of the war. I don't buy that excuse.


RE: gas price?
By mars777 on 1/11/2008 9:10:30 AM , Rating: 1
IMHO you're not competent to say that, as is nobody here.
If Warner did not try we would be waiting forever or we had to buy combo players...

I hope they manage to end this sh*t...

I Hope they all go to one side, no matter which one, but BD is currently the more obvious one!


RE: gas price?
By Spuke on 1/11/2008 11:19:22 AM , Rating: 5
quote:
IMHO you're not competent to say that, as is nobody here.
Anyone can give their opinion here. That's why this place exists. If he's not competent to speak on this subject then neither are you.


RE: gas price?
By Razgriz20 on 1/11/2008 3:19:37 PM , Rating: 2
quote:
This is hardly going to expedite the end of the war. I don't buy that excuse.


Yeah keep telling youself that...


RE: gas price?
By Hawkido on 1/11/2008 3:33:06 PM , Rating: 2
quote:
So why didn't they drop BLu-ray and support HD-DVD??


Because as Warner stated earlier the sales delta made BR more attractive even with it's far higher price (It was still outselling on discs, which is the only thing movie studios care about... players don't mean crappo to them), with the lessening economy, dropping one of the formats would be the best business decision. If they feel HDDVD is failing and dropping one of the HD formats is a good business descision, then going BR only is a good decision.

Wish in one hand and crap in the other... See which one fills up faster.

Plus if they lean one way that will hasten the format decision and lessen production costs.


RE: gas price?
By 16nm on 1/11/2008 5:24:12 PM , Rating: 1
quote:
quote:
So why didn't they drop BLu-ray and support HD-DVD??
If they feel HDDVD is failing and dropping one of the HD formats is a good business descision, then going BR only is a good decision.


Warner were the teeter-totter in the format war. Had they decided to drop Blu-ray then HD-DVD would have come out ahead. They should have waited to see what the holiday sales of all those HD-DVD players did to the movies sales numbers...

But honestly, I am just happy that this issue is coming to a head regards of the fact that my favorite is the loser. I am waiting on Microsoft to add Blu-ray support to Media Center and I will one less thing to whine about. :)


RE: gas price?
By 16nm on 1/11/2008 5:24:12 PM , Rating: 2
quote:
quote:
So why didn't they drop BLu-ray and support HD-DVD??
If they feel HDDVD is failing and dropping one of the HD formats is a good business descision, then going BR only is a good decision.


Warner were the teeter-totter in the format war. Had they decided to drop Blu-ray then HD-DVD would have come out ahead. They should have waited to see what the holiday sales of all those HD-DVD players did to the movies sales numbers...

But honestly, I am just happy that this issue is coming to a head regards of the fact that my favorite is the loser. I am waiting on Microsoft to add Blu-ray support to Media Center and I will one less thing to whine about. :)


RE: gas price?
By Nfarce on 1/10/2008 7:13:58 PM , Rating: 5
Just my $.02 here, but if people are having to put off on BR or HD DVD purchases at $20-$30 a pop due to gas prices, then perhaps they shouldn't have bought a high def player at all - or HD TV for that matter. Perhaps their priorities are wrong.

Take me for example. In 2006 gas was $2.15 US for 87 octane in metro Atlanta. I drive "average" miles for my city at 1,500 miles a month, and average 23 mpg. Now, gas is $3.05 for the same stuff.

Gas made up about 10% of my disposable income budget (after all bills from mortgage to car payment to cable) in 2006. Per month in 2006, I averaged $140/mo. in gas. Now I'm paying closer to $200/mo. on average which raised the share of disposable income on gas to a whopping 14%. I really don't even feel it.

An even simpler example would be a 1,000 mile round trip vacation to Disney World using the same gas price and MPG comparisons: $93 vs. $132. If that increase in travel cost is hitting you hard, then you don't need to be taking said vacation to Disney World.

The point being here is that if money is so tight that another $50-$100/mo. increase in an expense is causing you to withdraw from high-def DVD purchases, then you definitely have your priorities wrong. Maybe that's why the chickens have come home to roost in the credit markets.


RE: gas price?
By 16nm on 1/10/2008 7:45:21 PM , Rating: 5
quote:
Just my $.02 here, but if people are having to put off on BR or HD DVD purchases at $20-$30 a pop due to gas prices, then perhaps they shouldn't have bought a high def player at all - or HD TV for that matter. Perhaps their priorities are wrong.


I think because when the economy wasn't in the toilet, they could afford these things. Now that everything is supposedly in the s-hole, we can't afford to have fun.

The bottom line here is that this is an extremely weak excuse from Warner. Frankly, I don't understand why Warner have to give an excuse. If they want to be pricks and drop HD-DVD then so be it. Being a prick doesn't need an excuse, does it?


RE: gas price?
By Nfarce on 1/10/2008 8:15:32 PM , Rating: 2
quote:
I think because when the economy wasn't in the toilet, they could afford these things.


Uhm, the economy has slowed its insane growth, that's all. It's hardly in the toilet. We are still positive in GDP growth, job growth, income growth, and retail sales growth. I don't consider a decrease in the increase of growth as "being in the toilet" any more than not increasing funding of a social program as a decrease in funding of said social program as certain politicians and media proclaim. That said, as mentioned previously, a $100/mo. increase in an expense shouldn't cause someone to totally back off hi-def spending, be it $25 DVDs, $400 players, or $2,500 plasmas. And as stated previously, if that is the case, then somebody's priorities are bass ackwards.

quote:
If they want to be pricks and drop HD-DVD then so be it. Being a prick doesn't need an excuse, does it?


Nope, but everyone knew one of the two formats was going to have to lose at some point in time. In this day in age of consolidation and consortium, it was inevitable. There is no room for both formats long term. And has been said countless times since this format war started, the exact same thing happened to Beta when VCRs still cost $1,000.


RE: gas price?
By Mach Omega on 1/10/2008 9:21:21 PM , Rating: 2
quote:
We are still positive in GDP growth, job growth, income growth, and retail sales growth.


At the risk of getting into an economics discussion, job growth was actually down from 2006 in 2007. And the one thing you never read about is the quality of jobs that are being produced... the service sector has been the main driver in jobs creation but no one writes about how the overwhelming majority of those jobs don't offer livable wages. Sure, Starbucks is hiring but try living on the salary. The so-called "job growth" is largely smoke and mirrors.

The economy is now primarily fueled by debt spending and other forms of "fiscal steroids." Give out huge tax breaks that largely benefit the wealthy... since the mega-wealthy make up less than 10 percent of the population, it doesn't matter that huge portions of the tax breaks end up in off-shore accounts, tax shelters or foreign economies because the chumps that got the $600 checks (read: the lower class) pump that money right back into the economy via paying debt or impulse purchases. So it makes it SEEM as if the economy is growing but it's really people just pumping money that they save on taxes back into paying ridiculous amounts of debt or comfort purchases to FORGET that they're in debt to their eyeballs. Don't even get me started on how the wealthy manipulate the stock market to fleece the sheeple... even Mark Cuban stated in his blog that it was stupid for anyone other than the rich to be involved in the market because it was a stacked deck.

Most of the people who comment on the current state of the economy are conservatives who have "drunk the Kool Aid." Most have no idea what the economic indicators mean and those who do have a strong motivation to tow the party line because money is flowing into their pockets. The really humorous part is that many of the people being fleeced are Red State, Bush-lovers who have let ignorance and fear cloud their better judgement.

Oh well.


RE: gas price?
By Nfarce on 1/10/08, Rating: 0
RE: gas price?
By Mach Omega on 1/11/08, Rating: 0
RE: gas price?
By sweetsauce on 1/11/08, Rating: 0
RE: gas price?
By Nfarce on 1/11/08, Rating: 0
RE: gas price?
By Mach Omega on 1/11/2008 2:08:16 AM , Rating: 5
Read your old posts... same neo-con jackass nonsense.

I LOVE the tax burden argument. It's so loaded, its hilarious. I've used it to stomp neo-cons frequently.

Simple fact, the tax burden argument is only valid if the wealthy paid expenses IN PROPORTION to their wealth. But that isn't so. Because prices are relatively fixed (as in fixed ranges), money works EXPONENTIALLY for the wealthy but arithmetically for everyone else. For that matter, in most cases, nothing is actually being produced, money is just creating MORE MONEY for the wealthy. How so? It is LOANED to the so-called "lazy" who bust their asses everyday for the opportunity to get consumer financing, mostly at EXORBITANT interests rates, to buy the big screen TV or Xbox360 for their kids. But these same folks are "stupid" and "lazy" because they aren't rich, huh?

As for the "capital creates jobs" argument, even Warren Buffett (who OPPOSED the tax breaks) said that he has more capital than he can convert into jobs. How the hell do you think these guys have wealth that continues to ACCUMULATE? The money only creates jobs in the LOOSEST sense of the term. The money creates financing in the form of LOANS for businesses and individuals. The wealthy make a great deal of their money LOANING their money for the purpose of collecting INTEREST. In other words, CREATING DEBT. Even purchasing corporate shares are a form of money-lending for the intention of collecting interest (called "dividends" in corporate-speak). It's the same game with minor variations.

Let me let you in on a little secret... capitalism is a GAME. One of the few games in life that, if you aren't good at it, you suffer. If you suck at basketball or football, you always have the option of not playing. If you suck at accumulating or managing money, it affects you every day of your life. Even Warren Buffett stated that his capitalist skills would have been useless if he had been born in Bangledesh or another Third World country that did not give him the same opportunities as having been born in the U.S.

I don't hate the wealthy, I just know that the game is rigged. We don't live in a "true" capitalist system, something a die-hard libertarian will tell you. So if the most conservative conservatives know this, why won't neo-cons admit it?


RE: gas price?
By Nfarce on 1/11/08, Rating: 0
RE: gas price?
By Mach Omega on 1/11/2008 12:38:11 PM , Rating: 5
More nonsense.

quote:
Well that's logical. If you earn more money than someone else, then what you purchase is going to cost less to you than someone else. Life's just not fair, and nobody was promised anything. You and Karl Marx have a lot in common.


You're entire premise is that the wealthy work harder than the average moe therefore they deserve what they get. Let's look at a condensed version of Bill Gates career:

1. Purchases QDOS for $75,000 (didn't actually earn the money for the purchase);

2. Licenses the technology to IBM, nascent PC industry is born;

3. Collects revenue on EVERY PC, whether DOS is loaded or not per licensing agreement;

4. Microsoft goes public, Bill G. becomes instant billionaire.

Bill Gates became a billionaire from technology he didn't even develop. His pedigree was in writing versions of BASIC. For all intents and purposes, Bill G. became one of the richest men in the world when a perfect storm of events allowed him to capitalize. That doesn't make him smarter or better than anyone, it just means that he took advantage of certain circumstances. The notion that the wealthy are somehow smarter or better or work harder is a myth. It's apparent from your posts that you are an ignorant nimrod who has achieved some financial success, so it's apparent that real intelligence is not necessary to achieve financial success.

Let's look at another one, Mark Cuban:

1. Becomes an investor in Broadcast.com, isn't responsible for the original business plan or concept;

2. Helps sell Broadcast.com to Yahoo for roughly 5 billion though the venture hasn't turned a profit;

3. Cashes out Yahoo stock;

4. Dot.com crash, Broadcast.com technology never significantly affects Yahoo's bottom line and dies, Cuban walks away with 2 billion+ dollars for selling a lemon.

There is a term for this type of transaction on the streets... it's called the "long con." Convince chumps that something has value when it really doesn't. That isn't "producing" anything and the only "work" that goes into that is building the setup.

I love the "life's not fair" argument. Notice how it doesn't actually address anything, it's just the "you have sour grapes" BS argument that every neo-con falls back on when s/he doesn't have a real argument.

quote:
Are you one of the idiots in this nation living from check to check and not saving?


Thanks for proving my point. The majority of the people in this country are NOT ABLE to save because of the costs of living in this country. Real estate prices have TRIPLED as well as gasoline and other necessities. So a person is a "idiot" for not being rich? YOU are an idiot for being a nonsensical jackass.

quote:
But it's not just for the evil wealthy. It's called investing. Do you know of any poor people who have done hiring and investing?


Investing, shminvesting. The actual word you are looking for is "usury." Our entire financial system is propped up by creating DEBT. For all intents and purposes, the "greater sucker" theory.

quote:
When did I say that? "Lazy" to me is sitting on one's ass at home collecting income from the government.


I guess it's better that you referred to the hard-working people of this country as "idiots." Yes, much better.

quote:
I assume you are of the ilk that believes that this nation is great because of government and only government creates jobs.


With all of the capital floating around, only 18000 jobs were produced in December. If the economy was doing so well, shouldn't MORE jobs have been created? Have the wealthy become suddenly less wealthy? Isn't all that capital they are hoarding supposed to produce jobs and prosperity? But that doesn't happen. The wealth is ACCUMULATING at the top. The markets are not truly fluid. It's a semantical and baseless argument.

quote:
I see it as opportunity. I see it as a way to move up. Let me let you in on a little secret: if somebody from Mexico or China can come here, not speak a word of English, and start their own successful landscaping or janitorial business and be successful (or any other business for that matter), then there is NO EXCUSE for ANY ABLE BODIED OR ABLE BRAINED American born on this soil to NOT succeed and take part in this land of the greatest opportunity in the history of mankind.


Hmmm, so everyone is supposed to be a business owner? Then WHO is going to work for them? One of the dirty little secrets of capitalism is that it relies heavily on cheap labor... you know, those "idiots" you keep mentioning. For every successful enterprise started in this country, there are roughly NINE that fail, many started by people with advanced degrees. Guess they are pretty "stupid" too, huh?

How about Nicola Tesla, one of the most brilliant inventors who ever lived. He died penniless. By your standard, cream always rises to the top but the reality is that isn't so. Do you actually think that tens, maybe hundreds of thousands of people with the skills to be wealthy or successful haven't died poor due to circumstance or lack of opportunity? It's a self-perpetuating argument to claim that the system is unilaterally fair or flawless... neo-cons use that BS argument so they don't actually have to address the flaws in the system. And capitalism is INDEED flawed as a system. If you think that makes me a socialist, think again. But it's easier to call me a "wingnut" than to substantially defend a system that is so obviously flawed.

As for your constant references to Marx, I expect such cheap arguments from a neo-con jackass. Forget that Marx's data was validated by countless events through history. Let's even forget that Marx never actually described what economic system WOULD actually replace capitalism. Communism as we know it was the creation of despots in the former Soviet Union, not Marx, anymore than today's Christianity was created by Jesus Christ. Get your facts straight.

quote:
Face it: you HATE the idea that someone has something that someone else doesn't have; you HATE the idea that someone can be successful in this nation whereas someone else is "stuck" in a minimum wage job; you want the imperial federal government to hijack what the "rich" and upper-tier own and redistribute it to the "less fortunate" and "working class" to even things out a little for your perfect liberal socialist Utopia.


Wow, and I'M the wingnut. I'm simply pointing out that "capitalism" as we know it is deeply flawed. I don't recall stating ANYTHING that you have written, it's just easier for you to state false assumptions than face the facts. Same BS neo-con diatribe. Figuratively speaking, I stomp clowns like you for breakfast. When someone devolves to assumptions and baseless statements, I know s/he is done.

quote:
In short dude, I'm just really sorry you have such pent up anger. You really should get over it, because that kind of hatred, animosity, and resentment will eat at you from the inside and destroy your health. Really.


Sarcasm is for the intelligent. Stick to grunts and whines like the Neanderthal you are.


RE: gas price?
By mcnabney on 1/11/2008 1:53:53 PM , Rating: 1
That was one an excellent argument. I would vote you up, but I have already posted.


RE: gas price?
By Nfarce on 1/11/2008 1:59:02 PM , Rating: 1
quote:
You're entire premise is that the wealthy work harder than the average moe therefore they deserve what they get. Let's look at a condensed version of Bill Gates career:


First, the majority of the successful in this nation are not Bill Gates. Second, I never said the wealthy work harder than anyone else. I said most EARN what they make. You may not think that sitting in an accounting office looking at an LCD crunching numbers 8-10 hours a day is "work" but I do.

quote:
The notion that the wealthy are somehow smarter or better or work harder is a myth.


I never said that. Again.

quote:
It's apparent from your posts that you are an ignorant nimrod who has achieved some financial success, so it's apparent that real intelligence is not necessary to achieve financial success.


I came from very meager beginnings and have WORKED my way through life to get where I am. I did not stomp on other people or rob the system to get where I am. Whether or not you find that as a lack of intelligence is of no concern to me. Opinions of angry people like you are meaningless to me.

quote:
So a person is a "idiot" for not being rich? YOU are an idiot for being a nonsensical jackass.


You forgot the initial topic. The original blog post is about a perceived issue of HD-DVD sales going south because of gas prices (which is a BS excuse I think). As I stated initially, anyone who OWNS hi-def equipment yet has to sacrifice a $20-$30 purchase because of gas prices is an idiot with the wrong priorities (like living check to check and not saving). HD equipment is not MAINSTREAM material for everybody - it's HIGH END material.

quote:
Our entire financial system is propped up by creating DEBT.


Well of course it is. Is that new or something? The majority of people cannot afford to pay CASH for every large ticket purchase, be it a $700,000 home for a "rich" person or a $20,000 car for a "working class" person.

quote:
Hmmm, so everyone is supposed to be a business owner? Then WHO is going to work for them?


That was just one example of an OPPORTUNITY in this nation.

quote:
And capitalism is INDEED flawed as a system. If you think that makes me a socialist, think again.


It is not perfect, but it DOES work better than socialism. So far, all you have said is what you HATE, from wealth to capitalism. Therefore, I deduce the opposite of what you hate is what you like.

quote:
Let's even forget that Marx never actually described what economic system WOULD actually replace capitalism.


Here are three of his tenets - see if any sound familiar:

1) Abolition of property in land and application of all rents of land to public purposes.

2) A heavy progressive or graduated income tax.

3) Abolition of all right of inheritance.

quote:
Same BS neo-con diatribe. Figuratively speaking, I stomp clowns like you for breakfast.


First, you will not ever, EVER quell my opinion. EVER . Second, you need to look up the definition of "neo-con." I am not nor have I ever been an ex-liberal.

quote:
Stick to grunts and whines like the Neanderthal you are.


You really think insults hurt here, dontcha? Sorry, I don't think highly enough of you to give a damn. It just drags the threads down.


RE: gas price?
By Nfarce on 1/11/2008 2:12:35 PM , Rating: 1
Oops, I forgot to add one of my all time favorite quotes regarding capitalism:

"The inherent vice of capitalism is the unequal sharing of the blessings. The inherent blessing of socialism is the equal sharing of misery." - Winston Churchill

Good day.


RE: gas price?
By Mach Omega on 1/11/2008 3:10:21 PM , Rating: 2
“History repeats itself, first as tragedy, second as (N)farce.”

Good day back at ya.


RE: gas price?
By Nfarce on 1/10/08, Rating: 0
RE: gas price?
By deeznuts on 1/11/2008 12:45:34 AM , Rating: 4
quote:
I don't consider a decrease in the increase of growth as "being in the toilet" any more than not increasing funding of a social program as a decrease in funding of said social program as certain politicians and media proclaim.
Eh, a huge process such as America's GDP doesn't just flip from hugely positive to negative like a light switch. A decrease in growth doesn't qualify as being in the toilet, but it signals a trend, a weakening economy. And when businesses and consumers see a weakening economy, they pull back spending, further perpetuating the weakening.

Adding 18,000 to the payroll in one month is not good. It's pretty damn weak, along with the jump in unemployment etc. And retailers in general had a weak holiday season. The retailers that fared well, Wal-Mart and Costco, signaled consumer caution, flight to discount. We are heading into a recession, whether we can steer clear remains to be seen, but we are headed that way right now.


RE: gas price?
By Spuke on 1/11/2008 11:30:27 AM , Rating: 2
quote:
And retailers in general had a weak holiday season.
This is the part I don't understand. Many reported sales over last year but not as much growth as the 2005-2006. Considering the housing slowdown and foreclosures I can understand if people are more reluctant to spend but they're still spending. Growth is growth.


RE: gas price?
By Nfarce on 1/11/2008 12:19:40 PM , Rating: 1
As someone else posted here, a "recession" is two or more consecutive quarters of negative growth (that does not mean slowed down but still positive growth). That means numbers going down, not up. We have not seen that. Numbers are still going up, just not as robust as they were previously. There are no negative numbers out there. Yet.

http://online.wsj.com/public/article/SB11978451476...

In any event, if you look at the historical cyclical economic trends, about every decade we have some variant of a recession, or as others would say, a correction.

Regarding the "weak" holiday season, the increase of spending just wasn't as strong as expected - there was still an increase in spending over last year.


RE: gas price?
By Mach Omega on 1/11/08, Rating: -1
RE: gas price?
By WalksTheWalk on 1/11/2008 2:23:10 PM , Rating: 3
Mach,

So, according to your post Marx was right? If he was right, why are the mostly capitalist nations the nations that perform the best (there are no pure systems)? Why are there no communist or socialist nations that perform at the same economic level as the US?

The historical fact is that capitalism works better than any other economic system. Sure, there are rich people have been lucky or dishonest just as there have been poor people who have been lucky and dishonest. There are poor people that have won the lottery and made good decisions and live a great life. There have also been poor people that have won the lottery and have blown it all and wound up in the same place they started in. There have been, and will always be, rich and poor people in the economy. Now, I have no problem helping the deserving poor, but over-taxing the rich and giving it to the poor without question is nothing more than a method of gaining political power that was perfected by the Romans and look how they ended up. The "war on poverty" in the US hasn't worked in the last 30 years and it isn't going to by giving money to the poor.

Socialism and communism do not work because they do not foster innovation. Competition fosters innovation. Competition drives the markets to balance. Competition is the natural order of things. To say the US version of capitalism is stacked is true. All economies are stacked one way or another, however, in our economy one can rise from poverty within the system unlike any other in the world today. They don't need to be a business owner and they don't need to be really smart. They just need to make good decisions despite whatever circumstances come their way.


RE: gas price?
By BansheeX on 1/11/2008 12:58:19 AM , Rating: 3
quote:
We are still positive in GDP growth


Misdirection.

quote:
job growth


What kinds of jobs? We're losing all of our manufacturing jobs and turning into a service-based economy. Our IP exports are easily copied and pilfered by other countries. If this were a feudal system, the Chinese would be the surfs and we would be the lords. Pretty soon they're going to realize that they don't need us as consumers when they already have 3 billion of their own. The dollar will collapse and the surfs will overthrow their lord.

quote:
income growth


Inflation is growth? This is what happens when you look at fudged figures and government statistics.


RE: gas price?
By Mach Omega on 1/11/08, Rating: 0
RE: gas price?
By rdeegvainl on 1/14/2008 6:58:08 AM , Rating: 2
This isn't about only HD spending, it is about entertainment spending in its entirety. That is and should be the first thing dropped. Yes they should take a vacation to the local park instead of Disney land. Even those that saved and weren't living from pay check to pay check, if things start tightening your budget you SHOULD cut back your spending. First thing to get cut is the things that aren't NEEDS, i.e. entertainment.

Warner trying to expedite the process of an HD winner is so people don't completely avoid HD for the fear of wasting that money. The sooner they can have a victor, the sooner the entrance price goes down, the sooner it is affordable to users. Not to forget it saves them money by only producing for one format.

"The point being here is that if money is so tight that another $50-$100/mo. increase in an expense is causing you to withdraw from high-def DVD purchases, then you definitely have your priorities wrong. Maybe that's why the chickens have come home to roost in the credit markets."

That extra 50-100 dollars of expendable income goes a huge way. Anyone that has a set living condition that gets 50-100 dollars more a month to use, can make it go a long way. People who first cut from entertainment when they have less money to go around, DO have their priorities in the right place, unless you think they should keep spending money they don't have. If you fail to see that, I really don't know what to say.


RE: gas price?
By wallijonn on 1/14/2008 11:18:48 AM , Rating: 2
quote:
Just my $.02 here, but if people are having to put off on BR or HD DVD purchases at $20-$30 a pop due to gas prices, then perhaps they shouldn't have bought a high def player at all - or HD TV for that matter. Perhaps their priorities are wrong.


It is expected that gasoline will rise to over $4 a gallon this coming spring.

If someone needs an extra $200 a month they can easily cut their TV cable, the extra 6 premium movies channels, their internet and their cable phone. I know many people whose cable bills are $150 to $200 a month.

I use rabbit ears with my HDTV. And I'd be willing to buy $15 disposable cellular phones. The internet I can use at work. Meta prices have soared, as has Salmon. If the average family's grocery bill goes up $50 a week, bye bye extra income.

People who are so strapped that they can't afford to pay $20 per week for DVDs will also not be willing to pay $25 for High Def movies.


RE: gas price?
By halcyon on 1/11/2008 1:46:31 AM , Rating: 1
Did you even try to read the article, instead of just the headline?

Did you ever do econ 101?

Hello Recession, anyone?


RE: gas price?
By MrTeal on 1/10/2008 5:10:48 PM , Rating: 3
It's seems Warner is saying that rising gas prices will lead to a recession, and that the belt-tightening during the possible recession will prevent consumers from buying movies. They want to get the format war ended and people switched to HDM before then.


RE: gas price?
By ksuWildcat on 1/10/2008 5:14:15 PM , Rating: 2
I see what you're saying, but unless BD comes down to price of regular DVDs, I just don't think that this will be true. The average person is going to consider a $20-$30+ movie an expendable purchase anyway. Perhaps I'm wrong though...


RE: gas price?
By helios220 on 1/10/2008 5:50:08 PM , Rating: 5
As has been stated, rising gas prices and the dreaded economic recession do have an impact on sales of items such as DVDs. When consumers have to spend more on the things they need to buy to live (food, transportation, etc) there is less money left over for non-necessities.

Personally I can't think of a whole lot (in the realm of consumer electronics) more unnecessary than Blu-Ray, or HD-DVD to an extent. I personally am somewhat of a techie and have a weakness for new gadgets, but I already have an upscaling DVD player and a DVD collection, now I am supposed to shell out a small fortune for a Blu-Ray player and pay twice as much for all of my DVDs? While the $99 HD-DVD players weren't so bad, that still wasn't doing it for me either due to the selection of movies.

Currently I can't but help feel like the big names in the industry think as a consumer I'm a complete retard. God knows I can't think for myself unless they tell me what to buy and when to buy it.

Thanks Warner, it's all so clear now I'll take 3.


RE: gas price?
By aos007 on 1/10/2008 7:34:30 PM , Rating: 3
I agree with you. Gas prices and other stuff were not the reason they choose BluRay - they were the reason they decided to make a move to end the format war. Then they made a decision based on sales (I'm guessing) that BluRay is in a better position to win and decided to pick it as their choice. Seems like a pretty simple and sound business decision.


RE: gas price?
By Oregonian2 on 1/10/2008 8:16:17 PM , Rating: 2
Yes, that's pretty much what was said (if one reads other articles with quotes and the like). Their sales, he said, were spur-of-the-moment type sales and they expect their category of business to have a downturn ahead with gas prices going up as one source (probably both as a money sink and that people will be driving out to shop less). They wanted to make their move before things went bad so that they'd be positioned properly when things hit the fan, so to speak. Having two formats was making a bad situation worse.


RE: gas price?
By cubby1223 on 1/10/2008 5:12:41 PM , Rating: 2
How does gas price affect their decision? When the quote is taken out of context and sensationalized by an unmistakably pro-HD DVD DailyTech.

High gas prices > people shop less

Just one out of many, many factors why Warner chose the path to end the format war. You just don't have those reported because they're not eye catching.


RE: gas price?
By sinjinx on 1/10/2008 5:16:00 PM , Rating: 2
Not to mention that being an "impulse buy" can be pretty difficult when your market is also confused by the formats available and their longevity.


RE: gas price?
By lopri on 1/10/08, Rating: 0
RE: gas price?
By sweetsauce on 1/10/2008 7:57:14 PM , Rating: 2
oh noes a boycott, im sure he'll cry himself to sleep now.


RE: gas price?
By RMTimeKill on 1/11/2008 4:33:40 PM , Rating: 2
more pew pew less QQ


RE: gas price?
By kinnoch on 1/10/2008 5:14:23 PM , Rating: 2
They are saying gas prices are affecting how frequently people have "impulse buys." Impulse buys seem to be a significant amount of their business.


RE: gas price?
By munkle on 1/10/2008 5:19:39 PM , Rating: 5
You would think they would have sided with Hd-dvd since its cheaper with that reasoning. People are more likely to impulse buy something for $200 rather than $400 when money is tight.


RE: gas price?
By clovell on 1/10/2008 5:26:13 PM , Rating: 5
Bingo. Warner's playing with smoke and mirrors here. Yes, it makes business sense to end the format war if you see a recession coming, but that has no bearing on the decision of which format to pick. Sounds like a bunch of spin to me - shens.


RE: gas price?
By ksuWildcat on 1/10/2008 5:30:27 PM , Rating: 2
I concur with your assessment, 100%. Why not pick HD-DVD if the end-user cost is so worrisome?


RE: gas price?
By Brockway on 1/10/2008 5:55:25 PM , Rating: 4
Its because they believe that going Bluray only will end the format war faster than if they went HDDVD only. Look at the exclusive studios now, this move pretty much kills HDDVD. Had Warner gone the other way, this crap could have gone on for another 2 years easy.


RE: gas price?
By Spuke on 1/10/2008 6:37:00 PM , Rating: 2
quote:
Its because they believe that going Bluray only will end the format war faster than if they went HDDVD only.
I agree but since DVD sales are down, ANY HD format will suffer also no matter which one it is. If no one buys either format, then the format "war" won't be settled anyways.


RE: gas price?
By rockyct on 1/11/2008 12:46:53 AM , Rating: 3
Warner going HD-DVD exclusive would have created a 50-50 split in the market. That would have dragged out the fight to the point where everyone would have dual format players. It would not have come close to killing Blu-ray.

Warner going Blu-ray created a 70-30 split in the market and essentially means the end of HD-DVD and the format war.


RE: gas price?
By sweetsauce on 1/11/2008 2:08:02 AM , Rating: 4
All warner goin blu exclusive does is ensure they won't have 750k+ potential HD customers. I sure as hell won't be getting blu until its under 100, same way i didn't buy hd-dvd until it was 100. Unlike vhs to dvd, theres no hurry to go HD.

PS Seeing 4x resolution HD tvs at CES only makes me want to hold out for HD even longer.


RE: gas price?
By kinnoch on 1/10/2008 5:31:28 PM , Rating: 2
I agree, but i think Creathr makes a pretty good point a few posts below. If they think the US economy is declining and the US will be purchasing fewer items, then wouldn't they side with the global HD Leader (which I believe is Bluray)?


RE: gas price?
By mcnabney on 1/10/2008 5:49:15 PM , Rating: 2
If they are worrying about sales dropping I think the last thing you want to do is tell 750,000 customers to BUGGER OFF, which is what they just did.

They might as well send them all emails telling them that they really aren't that interested in their business.

It isn't like is costs more to produce media in two formats. How long did LP, cassette, and CD exist happily together (and still do)?


RE: gas price?
By kinnoch on 1/10/2008 7:54:25 PM , Rating: 2
I think there is a fear the buyers have that they will be throwing away money. I'm patient and haven't been taken a gamble on one format on the other simply because I don't want to be bitten in the ass later on. I think this is a worry most potential buyers have. Having enough leverage to bring one format to victory would make shopping easier for the potential buyers. however, i wish they chose the cheaper format... I won't be getting involved until the bluray players drop in price significantly.


RE: gas price?
By mcnabney on 1/11/2008 12:00:37 PM , Rating: 2
Instead of fear, now they really have thrown away their money? That is what the switch caused.

And I agree with you. BlueRay has a higher entry point and will delay the entry of J6P into HD. So their decision was foolish in choosing Blue because it will slow the entry. That reason would have made more sense to go HD-DVD instead since it was already priced better.


RE: gas price?
By abhaxus on 1/10/2008 6:10:48 PM , Rating: 1
They didn't choose BD because of price relative to HDDVD, they chose it because it's the better selling format. Supporting BD is the fastest way to end the format war, and that is what they are trying to do.

I always hoped that they would come over to the HDDVD camp, but let's not kid ourselves... HDDVD was never going to 'win' the war, a victory for HDDVD would be for it to coexist with BD and players to exist that played both.


RE: gas price?
By Malhavoc on 1/10/2008 5:27:44 PM , Rating: 1
Any company that has to move product or materials is affected by gas prices. If gas prices go up enough, possible options would be to increase prices (bitch, bitch bitch ...), decrease selection to reduce shipping (bitch, bitch, bitch ...).


RE: gas price?
By WelshBloke on 1/10/2008 5:53:27 PM , Rating: 2
and HD-DVD is more expensive to ship than BR because?


RE: gas price?
By Malhavoc on 1/10/2008 6:41:43 PM , Rating: 2
I didn't say that it is. It is more expensive to ship both. It is not necessarily an overwhelming factor, but when trying to reduce costs you have to look at the things you can control. Shipping to/from multiple locations means more fuel costs.

Many companies also have minimum orders which may increase during gas hikes. Above that minimum order they still make a profit so may not charge you shipping, under it and well .. figure that out.


RE: gas price?
By creathir on 1/10/2008 5:28:48 PM , Rating: 3
Just thinking on a global scale, this is WB's way of saying the US is in trouble.

If the US economy collapses, they would be less likely to spend money on the luxury type of items. On a global scale, Blu-Ray has done better than HD-DVD, which is the leader in NA, but is lacking throughout the rest of the world.

WB is assuming the North American market is going to start feeling pinched by the supposed impending economic crisis.

Contrary to popular belief, (or at least the hype of the media) the word recession has an actual definition. Two or more consecutive declines in the GDP of a country are what indicate a recession.

The 2nd and 3rd quarters of 2007 (the most recent listings) of the United States' GDP was an INCREASE of 3.8% to 4.9%. Our country's economy is ROARING.

(http://www.bea.gov/newsreleases/glance.htm)

Waner, in my opinion, is trying to lay blame to a poor decision. To voluntarily shun an established market means other factors are at play. My guess is, the money theory is probably not too far off the mark.

- Creathir


RE: gas price?
By Serafina on 1/10/2008 5:30:15 PM , Rating: 1
Blu-ray will get America out of the recession. So if you want to help the U.S. economy choose Blu-ray.


RE: gas price?
By InternetGeek on 1/10/2008 6:20:53 PM , Rating: 4
?


RE: gas price?
By stmok on 1/10/2008 6:55:58 PM , Rating: 2
Its humour dude.


RE: gas price?
By Murst on 1/10/2008 5:40:56 PM , Rating: 2
Most people who keep up with the economy don't really expect 2 consecutive quarters of negative growth next year. However, the fear is that growth will slow down significantly (and, according to most economists, the slowdown has already began).

Furthermore, anything below 2% GDP growth is basically negative growth at this point, as inflation is over the 2% mark at the moment (lots of people try to say its not that high by excluding stuff like energy prices... but until I can stop spending on energy, more money does come out of my wallet).

The fear is that inflation will also pick up, due to even greater spending by the government and the weakening dollar... not to mention the 50 point reduction by the Fed at the end of this month (hopefully its not more than 50 points).


RE: gas price?
By ghost101 on 1/10/2008 7:50:09 PM , Rating: 2
No one calculates growth in nominal terms. So your entire argument fails. Targetting inflation dogmatically is poor policy anyway.


RE: gas price?
By sweetsauce on 1/11/2008 2:12:20 AM , Rating: 2
quote:
Targetting inflation dogmatically is poor policy anyway.
You mean its more convenient to overlook the obvious. Don't mind whats going on back here guys, keep your eyes front and center.


RE: gas price?
By someguy743 on 1/10/2008 6:26:39 PM , Rating: 3
I think a bigger reason to end the BluRay and HD-DVD war might be that people with high speed broadband will soon be able to download movies directly to their DVR (Tivo) set top boxes.

Why go to Blockbuster and search everywhere for a particular movie or movie type when you can just go to a website and find it easier or use a search engine to find it? The movie could be downloaded to your DVR in about 15 minute or less. Much simpler and hopefully cheaper ! Maybe tax free too since it's over the internet.

No need to worry about a new release movie been rented out after driving all the way to the video store either. I think that's how more and more people will get their movies in the next few years. No need to even buy an HD-DVD or BlueRay box.

I just googled this up. This is what I'm talking about:

http://www.freep.com/apps/pbcs.dll/article?AID=/20...


RE: gas price?
By Chadder007 on 1/10/2008 7:52:46 PM , Rating: 2
BS, if gas prices had something to do with it they would push ONLINE DOWNLOADABLE content even more.


RE: gas price?
By Mithan on 1/10/2008 8:06:30 PM , Rating: 2
Its a legit concern. Consumers don't piss money away when the economy is tight and if there is a Format War going on, they are going to be more careful yet.


RE: gas price?
By xxsk8er101xx on 1/10/08, Rating: 0
RE: gas price?
By rockyct on 1/11/2008 12:55:35 AM , Rating: 2
The disks themselves cost the same to the consumer. Blu-ray players are much more, but they will come down in price soon enough. Picking HD-DVD would result in two formats, and two players.

One Blu-ray player will always cost less than HD-DVD player and a Blu-ray player, or a HD-DVD/Blu-ray combo player.


RE: gas price?
By Spuke on 1/11/2008 11:36:46 AM , Rating: 2
quote:
Blu-ray players are much more, but they will come down in price soon enough. Picking HD-DVD would result in two formats, and two players.
How soon is soon to you? 3 years? 5 years? I predicted a $100 Black Friday Bluray player in another thread but someone pooped on that. They predicted $150-$200. Not a discount in my book. If it's not $100, then I'll continue to wait and enjoy my $100 HD DVD player.


RE: gas price?
By mindless1 on 1/12/2008 12:40:37 PM , Rating: 2
First, no we cannot say the discs will cost the same when talking about later writable discs. It is likely the cost is the same or nearly so but only time will tell.

Second the argument that picking HD-DVD will result in two is no more true than saying same about Blu-Ray.

Third, it's so backwards that Blu-Ray players will always cost less, did you get the two mixed up before you posted?


RE: gas price?
By rockyct on 1/13/2008 12:45:55 AM , Rating: 2
Who's talking about writable disks? You can't worry about that right now. The movie studios are driving the market to the next format, but there really isn't a movement yet in the computer market for 25 GB writable disks.

My argument is simple. If Warner picked HD-DVD, the format war would go on to the point where people would need to buy both an HD-DVD player and a Blu-ray player, or a combo player.

Paying for two players would obviously cost more than just a Blu-ray player. Since Warner chose Blu-ray, by the end of the year there will be no reason to buy a HD-DVD player, which will ultimately save consumers money.


RE: gas price?
By eye smite on 1/10/2008 9:01:51 PM , Rating: 4
They can change formats and site any reason they want, it's still to make more money. DVD's and related players are cheap now, so they need a new technology to market that no one has and make more money. I'm not buying blu ray anything til 2010 or later than that even. I'll stick with my $38 dvd player from walmart that plays divx format just fine and the rest of you can support their greed for more money.


RE: gas price?
By MrSmurf on 1/10/2008 9:27:50 PM , Rating: 2
wow, try read the article before commenting.


RE: gas price?
By wallijonn on 1/14/2008 10:51:47 AM , Rating: 2
"Honey, should I buy this $39.99 version of "Slither" on the combo disc, or get a tank of gas?"


Bad title
By Murst on 1/10/2008 5:31:09 PM , Rating: 5
Marcus, the title you chose for this article is horrible, as can be seen from the comments that follow.

The article you base this one on is "DVD sales slip drove Warner to Blu-ray". In the body of that article, there is a statement that higher gas prices are a cause of lower DVD sales. Further, the main reason for backing BR was to clear up consumer confusion. Warner seems to believe that, in order to protect their bottom line, there needs to be one format - hey believe the switch from SD to HD will happen much faster if there is a single format.

By placing that in the title, you are in effect implying that higher gas prices was one of the two major reasons for Warner to switch to BR, which is inaccurate.




RE: Bad title
By mcnabney on 1/10/2008 5:53:22 PM , Rating: 1
I don't think you understand how comment sections are supposed to work...


RE: Bad title
By Marcus Yam on 1/10/2008 7:42:19 PM , Rating: 1
The title still works though.

*Higher gas prices negatively affected DVD sales.
*Fewer DVDs sold alarm Warner.
*Warner feels it must take action to ensure company future survival (i.e., target the next growth segment, the HD market) and chooses Blu-ray.

In the end, higher gas prices had a role in, or fueled, if you will, Warner's decision.


RE: Bad title
By xxsk8er101xx on 1/10/2008 8:34:40 PM , Rating: 2
and yet picked the most expensive format? did warner have a brain fart and forget how expensive blu-ray is?


RE: Bad title
By Marcus Yam on 1/10/2008 9:07:44 PM , Rating: 3
I'm not going to say whether they made the right or wrong choice -- but from their perspective, they figured that picking Blu-ray would sooner end the "war."

With the war over, more consumers and retailers would buy into HD, and then Warner would (in theory) be able to grow their sales.

Warner probably just picked whichever side they thought had the better chance of winning.


RE: Bad title
By Spuke on 1/11/2008 11:46:27 AM , Rating: 2
They chose poorly. Or at least too soon. They should've waited till both formats were cheaper then picked the one with the most sales (movies and players). Even though the $98 HD DVD deal brought in some J6P's (my co-workers had NO desire to go HD before that happened), both formats are still too expensive for the average person especially when their DVD's work just fine.


Possibly...
By oldman42 on 1/10/2008 5:34:34 PM , Rating: 2
My assumption is that part of the backout clause says Warner can't blame HD-DVD itself for the withdrawl, either exlicitly or implicitly; ie. they can't say "We decided Blu-ray was a superior format," or even, "Upon re-examination it appeared best for us to reposition towards Blu-ray." This leaves them with nothing but BS as an excuse.




RE: Possibly...
By KernD on 1/10/2008 7:09:18 PM , Rating: 2
WTH are you talking about? "backout clause"... backout of what? Warner didn't backout of any deal. They were unsided, they were selling both formats, now they side with Sony, and will sell Blu-Ray only.


RE: Possibly...
By oldman42 on 1/11/2008 1:20:14 PM , Rating: 2
I don't think it is unreasonable to assume that Warner had to sign some sort of license agreement with the HD-DVD group before producing their technology.

Thanks for your contrib though.


Poor Reasoning?
By ksuWildcat on 1/10/2008 5:10:24 PM , Rating: 2
I don't really understand this statement regarding rising fuel prices and the economy as being the reason for the jump to Bluray. I consider $20+/movie as an expendable purchase, regardless of the price of gasoline or the state of the economy.

There has to be something more to it than this. Maybe it's just me, but I rarely purchase anything other than cheap or on sale DVDs.




RE: Poor Reasoning?
By mindless1 on 1/12/2008 12:49:35 PM , Rating: 2
There is something more, they want an easy-out, an excuse in an attempt to lesson the number of those offended by their decision. They may have just offended even more people with this nonsensical reason.


So much spin... I'm dizzy
By ajira99 on 1/10/2008 6:02:13 PM , Rating: 2
I'm glad to see that nobody is buying into WB's excuse (yet). This has less to do with acting in the consumer's best interest than trying to increase Blu-ray sales (and studio profits). This format "war" was pointless since sales of either HD media failed to significantly impact standard DVD sales. I wonder what excuses these studios will come up with when sales don't skyrocket? 1080p is 1080p - all that matters is the price point and usability. On that basis, I still prefer HD-DVD despite owning a PS3.




RE: So much spin... I'm dizzy
By saiga6360 on 1/10/2008 8:33:13 PM , Rating: 2
I agree with you that making these excuses is a rather pointless exercise. I just wish that WB just get on with it and just be happy with it. The decision had to be made, if the studio execs truly believe in it. Those of us in the know can mostly agree that WB has been one of the best at releasing HD content for both sides and because of that, we can only respect their decision if the trend continues. Hopefully this shift will be for the better so fans of either HD format can finally agree to end this pointless war once and for all or continue to be swallowed up in the mire of SD. Not saying SD is bad but once you go HD there is no turning back is there?


Recession?
By werepossum on 1/10/2008 7:21:38 PM , Rating: 2
quote:
Warner blames recession for Blu-ray Disc deal necessity


A recession is two consecutive quarters of negative growth. Since we've not yet had ONE quarter of negative growth since the 2000 recession, I think it's a bit premature to blame the recession for anything.




RE: Recession?
By Spuke on 1/11/2008 11:50:00 AM , Rating: 2
quote:
A recession is two consecutive quarters of negative growth. Since we've not yet had ONE quarter of negative growth since the 2000 recession, I think it's a bit premature to blame the recession for anything.
People are afraid of their shadows nowadays especially geeks. Facts rarely come into play in these situations. Besides, all the news stations say we're going into a recession so it must be true.


Petition link
RE: Petition link
By ajira99 on 1/11/2008 10:08:56 AM , Rating: 2
I just signed your petition, although I doubt that these studios will care about consumer opinion. They still don't have a clue about DRM.


Makes Perfect Economic Sense
By sapiens74 on 1/10/2008 6:17:59 PM , Rating: 2
People spend less money on things like entertainment when they have less money in their pocket. Add to that confusion in the marketplace for HD movies and the consumer might not jump on the bandwagon at wall.

TW was thinking longer term here and they made the right choice. Once everyone goes Blu Ray we will see sub $100 players

Just a side note. I always thought that Blu Ray would win simply due to storage capability from the onset. I know HD has the ability to add layers, but when you take a three hour movie like any of the LOTR, add comments, specials features, deleted scenes, and HD audio in Three languages, that storage space pays off and its cheaper to make one disc then two..

Just my 1.5 cents




By EglsFly on 1/11/2008 1:56:57 AM , Rating: 2
quote:
Las Vegas (NV) - Walking between the Blu-ray Disc booth and the HD DVD booth at this year's CES is like walking between an amusement park and a decrepit morgue.

Click on the slide show link on the following page (see URL below) and you will see why!
http://www.tgdaily.com/content/view/35540/113/




Paid off
By MagnumMan on 1/11/2008 10:18:10 AM , Rating: 2
Which executives of Warner are moving into an even larger mansion after this deal is signed? That they even come out and make asses out of themselves by saying gas prices was part of their decision is insulting to all of us. Do they think we're idiots? Someone got paid off, handsomely. This has nothing to do with gas. I don't really mind it too much, I like the Blu-Ray stuff.




As an Aside....
By tmouse on 1/11/2008 10:30:29 AM , Rating: 2
Technically speaking; since most of the brick and mortar stores just carry blu-ray, a higher percentage of HD sales will be internet sales. The multiple small trips to a store to buy blu-ray dvds wastes more gas than a single delivery truck or mail carrier ( which would be making the trips anyway) So Blu-ray sales increase gas use which contributes to the oil "shortage" and leads to higher prices which in turn decrease spending and lead to the "recession". So in a sense Warner is supporting the recession. ; ) . Really though this is just a CYA statement to try to diffuse angry HD owners and make Warner appear totally a victim. Did anyone expect a statement "we were offered big bucks so we switched"? There are MANY ways to "sweeten" deals when you have access to studios (music and movie) and a large distribution network its just (good , bad, whatever) business.




LOL
By PreOmegaZero on 1/11/2008 11:28:47 AM , Rating: 2
Gas Prices?!?
If they/re going to pull excuses out of their asses, why not just blame 9/11, Ron Paul, Corn prices or violent video games?




Chewbacca cannot live on Endor!
By bfellow on 1/11/2008 11:45:07 AM , Rating: 2
Therefore they must switch to Blu-Ray!




gas prices caused it?
By johnsonx on 1/11/2008 4:41:33 PM , Rating: 2
whew.... I was worried that it was caused by Global Warming.




So what?
By INeedCache on 1/13/2008 12:20:07 AM , Rating: 2
I'll just pass on both of them until this silly format war is over and the winner's players get down to around $69. High def is not a necessity in my world.




Must be some other motive....
By agtokc on 1/15/2008 11:27:08 PM , Rating: 2
"Warner made it clear that the deal with Blu-ray Disc did not involve exchanges of large sums of money, so then the motive must be something else."
_________________________________________________ __________
HD DVD is a better value all the way around. It supports and improves the current standard DVD medium and especially now that the Hardware Prices are a half to a third the cost of Blu-Ray machines. So if the economic logic they are using were justified they'd be onboard with HD. Can you say Sony Warner....




Gas prices pffft
By kusala on 1/10/2008 5:10:12 PM , Rating: 1
They may aswell just say they had WMD's and they had to go blu ray to get rid of them.




Yes Sony Won!
By Serafina on 1/10/08, Rating: -1
RE: Yes Sony Won!
By ksuWildcat on 1/10/2008 5:22:23 PM , Rating: 3
LOL! That is the funniest comment I've read this week! You just made Mr. Stringer a very happy man.


RE: Yes Sony Won!
By eye smite on 1/10/2008 9:58:22 PM , Rating: 3
Check you're little bag and make sure you still have all your marbles.


RE: Yes Sony Won!
By RMTimeKill on 1/11/2008 4:42:37 PM , Rating: 2
/waits to see if the PS3 or blu-ray players spontaneously combust

Hey... its not like Sony hasn't had a problem with that before...


"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive











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