Paramount, Dreamworks support for HD DVD perplexing

Stan Beer
Tuesday, 21 August 2007 12:46

Opinion and Analysis

The news yesterday that Paramount and Dreamworks studios have abandoned the Blu-ray HD video format and thrown their weight behind the rival HD DVD standard is perplexing, even if reports that the two studios are receiving large wads of cash for their decision is true.

What the move appears to signify is an attempt by the forces of HD DVD to impose the standard on consumers after failing to win them over. The fact is that HD DVD is being beaten at the point of sale by Blu-ray in both the sale of players and movie titles, a fact that has led some major retailers to remove HD DVD products from their shelves.

It is true that dedicated HD DVD players are outselling dedicated Blu-ray players. It is also true HD DVD players are cheaper.

However, both arguments for HD DVD are moot when you consider that the Blu-ray toting PlayStation 3 is already in 4 million homes around the world, dwarfing the sales of dedicated players of both formats, and continues to sell more than 100,000 a month in the US alone.

On the question of price, it is probably fair to say that the cost of an HD player is likely to be relatively modest compared to the overall cost of a decent home theatre system with large screen plasma or LCD TV and sound system. At US$499, the PS3 may not be the cheapest HD video player on the market but it's priced reasonably enough to have wormed its way into many more homes than any HD DVD player.

Now that Paramount and Dreamworks have seemingly been lured by a fist full of dollars to joining Universal in snubbing their noses at millions of Blu-ray player owners, we have a situation where major Blu-ray supporting studios such as Sony Pictures, MGM, Disney, 20th Century Fox and Lionsgate are pitted against the HD DVD supporters, with Warner Bros sitting on the fence.

As for the two studios, they say: "The decision to distribute exclusively in the HD DVD format resulted from an extensive evaluation of current market offerings, which confirmed the clear benefits of HD DVD, particularly its market-ready technology and lower manufacturing costs." Clear benefits of HD DVD? To whom?

Needless to say, the losers are consumers who now need to own two players or an an expensive dual format player if they want the choice of all available HD movies. Meanwhile, Sony will keep selling its PS3 to gamers, who while they wait until the new console builds up its games repertoir will continue to buy and rent Blu-ray videos.