HD DVD is dead, but DreamWorks still has exclusive deal with format
Thursday, February 28th, 2008Toshiba may have thrown in the towel on its HD DVD standard, but the company seems to have forgotten something. It still have an exclusive deal with DreamWorks to have its movies only distributed in HD DVD. That means that Toshiba may be admitting defeat and that the Blu-ray standard will become the only high-definition DVD standard, but DreamWorks is in a “catch 22.”
Reuters is reporting that DreamWorks and Paramount Pictures signed exclusive deals to offer movies only in the HD DVD format over the next 18 months. That deal is still on the books, so the “Bee Movie,” due out from DreamWorks next month, may come out in HD DVD, since it may mean more money for DreamWorks from Toshiba than switching to the Blu-ray standard so soon. Of course, DreamWorks would like the issue settled before this year’s holiday season.
Clearly, it seems that though Toshiba was brave enough to pull the plug on HD DVD, the company seems to have forgotten about the exclusive deals it signed picture studios up for. You would imagine that Toshiba will simply settle with these picture studios, so that those studios could move forward on the Blu-ray format without the loss of revenue promised from Toshiba in agreeing to the exclusive deals. I’m sure at this point Toshiba is wishing it would have simply come to an agreement with Sony on a single standard that combined the best of Blu-ray and HD DVD, because it seems Toshiba still has some more money to lose on the hd dvd deal even after quitting the fight.
Read more from the Reuters article.
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