HD DVD exclusivity deal: sealed by US$ 150 million in incentives?
Paramount and DreamWorks recent decision to release their movies exclusively on the HD DVD format renewed the format war. The announcement even had Michael Bay steamed up.
The unexpected move, as the New York Times reveals, may have more to it than meets the eye though. According to Times, two unnamed Viacom executives revealed that the two studios together will be getting US$ 150 million in financial incentives.
The financial incentives will consist of revenues that will come from cash and promotional guarantees. Microsoft, one of the lead supporters for the HD DVD format, commented however, that they “provided no financial incentives to Paramount or DreamWorks whatsoever.”
One interesting detail from the terms of exclusivity deal with the format may suggest that this blow to Blu-ray is only temporary: Paramount will only be HD DVD exclusive for 18 months. Only time will tell whether the format war will see its conclusion or whether the recent development just delayed the outcome.
Paramount and DreamWorks recent decision to release their movies exclusively on the HD DVD format renewed the format war. The announcement even had Michael Bay steamed up.
The unexpected move, as the New York Times reveals, may have more to it than meets the eye though. According to Times, two unnamed Viacom executives revealed that the two studios together will be getting US$ 150 million in financial incentives.
The financial incentives will consist of revenues that will come from cash and promotional guarantees. Microsoft, one of the lead supporters for the HD DVD format, commented however, that they “provided no financial incentives to Paramount or DreamWorks whatsoever.”
One interesting detail from the terms of exclusivity deal with the format may suggest that this blow to Blu-ray is only temporary: Paramount will only be HD DVD exclusive for 18 months. Only time will tell whether the format war will see its conclusion or whether the recent development just delayed the outcome.
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