Re: BREAKING NEWS!! Warner Brothers is now Blu-ray Exclusive
Quote:
| Sorry, but I think that's a load of crap. It's a decision strictly based on monetary gain. |
Of course it's monitary gain. My point is that this decision is not comparable to Paramount's "blind" decision to just follow the cash of an exclusive contract (where the BDA weren't even involved until after it was signed). WB's decision, and how they handled it, was quite different.
The two choices were payoff with a future market for HD sales, and a payoff with a future market of stagnating HD sales.
Plenty of insiders have had quite a bit to say about this already, for those who cared to listen.
Warner would have made as much money had they chosen to go with HD DVD with Microsoft's pay-off. They were courted from both sides with enormous sums and this time Microsoft didn't hide behind the curtain of Toshiba like they did when they helped fund Paramount's pay-off.
Warner's decision for Blu over Red was because that's the decision that makes market sense, given that WB was going to get the same payoff no matter which way they chose to go. Warner was smart, and by holding out as long as they did, they raised the stakes on both sides and got a lot more than the measely 150-million Paramount embraced.
Choosing Microsoft's payoff for Red would have put money in their pocket but stale-mated the HD market completely. Choosing the BDA's pay-off put money in their pocket and opened up the valve allowing the HD market to flow... giving them increased profit in the future as well.