Friday, August 31, 2007

Oh God. He's Going To Talk About The HD Format War. (Paramount Sucks)



For most of you, you can stop reading now as you probably have little to no interest in the High Definition optical format battle. It is after all only stealing a couple of percentage points away from DVD.


That last statement is exactly what is wrong with the whole situation. So we have Blu-Ray, and we have HD DVD. Both struggling to win over the DVD crowd with their crystal clear tack-sharp images and uncompressed sound, but because there are two formats, no one is interested. The market is growing, but very slowly.


The big reason for this is because there is a division of interests in both the electronics manufacturers and film studios over who will be the clear victor. Let's face it, there will eventually be one winner, and no one wants to be on the losing side. While my biggest wish for HD optical media is that there just be one major format, one clear winner regardless of who it is, I admit I am biased towards Blu-Ray, and have 19 Blu-Ray discs as well as a Playstation 3 (the leading Blu-Ray player)


As of right now, things break down like this:


Blu-Ray hardware Manufacturers = Sony, Panasonic, Hitachi, Samsung, Pioneer, Phillips, LG, Sharp, Lite-On, Mitsubishi, Loewe, Sharp, BenQ, and Daewoo.


HD DVD Manufacturers = Toshiba, Venturer


(There have been a few HD DVD players labeled 'RCA' and a few other brands, but they are just re-branded Toshiba players, as is the XBOX 360 HD DVD add-on)


You may have noticed the disparity between hardware manufacturers for both formats. Want to know why? Of course you do.


For, well, all of 2007 thus far, Blu-Ray has enjoyed a software sales lead of pretty much 2:1 or greater over HD DVD. HD DVD is the brain child of Toshiba, and Toshiba in response to losing in software sales lowered the prices of their hardware, again, and again. What happened then is no other consumer electronics manufacturer wanted to get involved because there was no profit margin in making HD DVD equipment if they wanted to compete with Toshiba.


Blu-Ray, while it's prices have dropped over the past year, is the more expensive format hardware-wise, and consumer electronics brands still gain a profit by manufacturing and selling their hardware. The 2:1 sales ratio has also helped Blu-Ray gain manufacturer support.


Now for the interesting part. Movie studios. This is the part where my true Blu-Ray fanboy roots may shine through the most in talking about.


Blu-Ray's big hitters = Fox/MGM, Sony Pictures, and Disney/Pixar


HD DVD's big hitters = Universal/NBC and Paramount/Dream Works


Dual Format Supporters = Warner Brothers


As you can see, there is quite a split between studios, and this picture would have looked different less than 2 weeks ago. I am referring to Paramount pictures, sleaze balls that they are. (See, I told you my fanboy would show through) Paramount pulled a high-def first 2 weeks ago when they announced they would be going from Dual-Format support, to HD DVD exclusive. Effectively, they dumped 2/3 of their HD supporters. I raise the anti-consumer flag of caution. Why would a company abandon two thirds of their consumers? Money. Though there is no direct proof (yet) speculation by many (Even posted in NY Times) is that Paramount was given some large financial incentives by HD DVD to drop support of Blu-Ray. Believe me, I promptly mailed a nasty letter to Paramount Picture's president.


This was the first time in the war that anyone flat out drop kicked their customers to the curb on either format, and I found their act despicable. At least Universal has stuck to their guns and stayed true to HD DVD, likewise for the Blu-Ray exclusive studios, and to Warner for releasing on both formats. I think Paramount has felt the consequences of their actions too. They have received heavy criticisms from industry insiders, as well as directors like Michael Bay, who initially stated he would not be involved in a Transformers 2 after the deal was announced.


I've really dragged this post out longer than it probably ever should have been , so I'll cut to the chase. The Paramount announcement stung me twice. Firstly, because it was the first time I'd seen a company flat-out abandon the MAJORITY of a consumer base, and it involved me directly. Secondly, it delayed the adoption of ONE single format. Many analysts had argued that this coming holiday season would likely spell a major victory for Blu-Ray, and help to identify very clearly a winner in the format battle, as Blu has the majority of electronics manufacturer support, and all but one studios (Universal) movies. These combined with a lot of heavy promoting would hopefully convince many fence-sitters to dive into Blu-Ray with confidence. The Paramount deal changed the whole landscape. While I'm still rooting for Blu-Ray, it is now being said that Paramount's move could help to drag the format war out for years to come as people fear getting screwed over by movie studios after they pick a format, only to have them drop support. If rumors of a pay-out to them are true, they let corporate greed screw over the HD world.


In conclusion, while I am a Blu-Ray supporter first, I just want ONE format in the end, be it HD DVD or Blu-Ray. Once this happens, there will be much more interest in the technology and a mass adoption, leading to more titles and big stuff too like Lord Of The Rings and Star Wars. All things considered, the path of least resistance to get there until 2 weeks ago was doing that through Blu-Ray, who was one studio away from having it all. And no, I wasn't asking Universal to go Blu-Ray exclusive, just neutral, releasing for both. This could have ended it right then and there.


In conclusion, Paramount Pictures sucks, and they are now on my short shit-list.




-Kody

Wednesday, August 29, 2007

Oy. I have a Blog.

I've had several blogs throughout the years. Problem is, I usually trail off in keeping them updated in short order. Alas, another is born. (Cue dramatic soundtrack)
Yeah, to be totally honest, I'm just doing a blog because everyone else I know has one. Great lesson for the children yes? Aaah, sheep-mentality. So lets jump in shall we?
The building where I work was recently purchased by G&G develpment, who owns High 5 Communications. Not very exciting in and of itsself I know, but what it means is we can do fun things now, like paint a mural on the wall, which is exactly what I'm doing. I've been spending a couple of hours after work a few nights a week working on a floor to ceiling mural in what we've dubbed our 'think tank' room. It's basically going to be a room where we can have informal meetings with clients, or just get together to try to come up with new ideas and other such marketing shenanigans. I'll post a picture when it's done. It's a lovely scene of a field with a solitary fall-colors tree being illuminated by a strategically placed sunbeam against a blue sky with whispy clouds. Can you picture it? Are you there?

Anywhoo, thats all for today.

-Kody