In an interview, Universal executive vice president and HD DVD Promotional Group co-president Ken Graffeo gave some insights to the recent format war developments. First up, he addresses the obvious: the pre-CES Warner
announcement was a surprise, and the necessary re-jiggering of the HD DVD press conference is what led to its
cancellation. Graffeo also reiterates that Universal will continue to stand behind the HD DVD format and roll out new titles; "business as usual" as he calls it. It's a brave face to put on the embattled format; but if consumer purchases are the strongest statement that can be made, then how can the 60:40 split in
sales figures be reconciled with his statement that "... we just haven't addressed (Warner's move) yet?"
Reader Comments (Page 1 of 4)
BrokenFERN @ Jan 22nd 2008 3:21PM
Quoted from the story...
ON CHANGES IN THE HDDVD PROMOTIONAL GROUP POST WARNER
"Ken Graffeo: Well, we heard about the whole move when everyone else did -- when a lot of us were on planes flying to CES in Las Vegas. To be very honest with you, we have not addressed that yet -- Warner is still releasing HD DVD titles up until May. Warner has always been in two formats, and prior to Paramount's switch, they had been in two formats, so now that Warner is exclusive... we just haven't addressed it yet."
REALLY??? You haven't addressed it yet? This is a HUGE blow to your strategy and it hasn't been addressed yet? Yes you have until the end of May, but Warner has already announced that there will be a 3 week delay on new and catalog HDDVDs vs Blu-Ray. The effects are already apparent with last weeks 85%-15% sales charts and now the 93% player figures. What are you waiting for?
Eddie @ Jan 22nd 2008 4:04PM
I can guarantee they've addressed it. What he meant was "As far as you know or are concerned, we haven't addressed it."
Warner and Blu decided to play hardball, showing no professional courtesy to HD DVD and informing them of their decision beforehand, so why should Universal and HD DVD now play nice? I like it. HD DVD isn't dead until we say it is, and the way I see it, Warner has until May to come to their senses and realize two formats that are bringing in profit are better than one format bringing in profit. The payoff from $ony might make things a bit complicated, but I'm sure the ball is firmly in Warner's court.
Sam Winter @ Jan 23rd 2008 5:05AM
@Eddie
hardball? Yea, you mean like when Paramount pulled that BS all pulled Blu movies off the shelf?
Anyways, of course they have are addressing it, but they will not say a thing until the dual format switch over has been completely setup and ready to go. Just as Warner switched at the very last moment before CES, these guys definitely do not want to let any information out that could hinder their bargaining position or change the market dynamics until they are absolutely confident in their new plan/strategy. I would guess it'll be at least a few weeks before we hear anything from Paramount, and even longer before Universal comes around.
But I can't but think how painful it will be and how stubborn they surely are since they are the main studio backer in HD-DVD and are the main player in the HD-DVD organization.
"Warner has until May to come to their senses and realize two formats that are bringing in profit are better than one format bringing in profit. "
That premise is just plain false. I cannot believe that you would actually believe that crap.
HD media comprises like 1-2% of Warner's sales, and will continue to do so until mass adoption of HD players happens. That WILL NEVER HAPPEN with two formats. No one wants to end up with a Betamax. Warner has already shown that they believe they will make more money in the longer term by quickly killing the weaker format (HD-DVD) and pushing mass adoption of Blu-ray. They came to this conclusion despite the fact that Toshiba was rumored to be offering on the order of $500 million to go HD-DVD exclusive. In light of that, the idea that they could possibly make more revenue from continuing sales of HD-DVD media vs pushing Blu-ray to mass adoption is laughable.
But don't mind me (or critical thinking), feel free to continue to live in that fantasy of yours.
BrokenFERN @ Jan 23rd 2008 3:38PM
Show your support. Sign the DIE HD-DVD Petition (7500+ and counting)
http://www.petitiononline.com/HDVDeath/
Ghoti @ Jan 22nd 2008 3:23PM
"You [Graffeo] work for Universal, but you are also the co-president of the HD-DVD Promotional Group."
So, basically, there's a big part of the answer why they haven't made the switch to Blu, and may not for some time...
hemmy @ Jan 22nd 2008 3:52PM
Universal is still sore over the court decision they lost against Sony in 84 :)
JimC @ Jan 22nd 2008 3:34PM
I think some Universal share holders need to kick Kenny G in the butt and right on out da door....
Gus @ Jan 22nd 2008 7:41PM
@JimC
Yeah good, so we can then flood the market with $400+ BR players.
When are you BR people going to realize that mass market adoption for HD media is not going to happen with BR any time soon, and if at all it will be many years away.
Idiots like you should be supporting HD DVD with everything you have got if you want BR to remain cheap and competitive.
Do you really think BR is going to maintain the low price drive when HD DVD is gone, you are seriously deluded if you think they are.
The BR plan has always been about returning profits to the Japanese from the Chinese, and that means higher prices, it has to!
IF you want BR to win and be price competitive and a main stream product, you need to wake up and support market competition, without it your format of choice is "A dead man Walking".
All this BS about customer confusion etc, every market everywhere has competition, and please don't use the BR V BR competition, this is a Japanese cartel, they DO NOT WANT CHEAP PRICING !
It defies belief and has me so perplexed that you brainwashed BR zealots cant see whats going on here, while your in the process of destroying my product of choice, you are destroying your own and you just can't see it!!
JimC @ Jan 22nd 2008 11:12PM
GUS,
When HDDVD is out of the way, Blu-ray has an even bigger challenge...DVD, a fact most redheads like to throw up now. So yes, blu-ray players will still need to come down in price to take on an even cheaper competitor. So having HDDVD in the mix is supposed to be better for blu-ray? No.
Gus @ Jan 23rd 2008 12:14AM
Dream on fool, BR will never beat DVD and the BDA knows it. They couldn't care less, the game has been for sony to take the initial pain and then the rest of the cartel cleans up with their expensive niche market monopoly. Cant you see it???
Are you that brainwashed you honestly believe BR can roll DVD?? Just another stupid fanboy who is promoting the demise of competition in the brainwashed belief his product of choice is going to sweep all before it, pathetic.
Your brainwashed rhetoric is helping destroy HD DVD and will make BR a niche product at the same time, I'm gob smacked how blind you and some others are!
You must be on the blu payroll, no one could be this stupid for free!
JimC @ Jan 23rd 2008 1:06AM
Wow GUS,
Are you one of the lone gunmen? You're either a complete tool or....well that's the only option. Blu-rya won't beat DVD this year or next but as more and more people move to HD especially when US airwaves move digital and more HD channels are offered, the HD media will start to overtake DVD. DVD is already on the decline, so naturally progression is HD media and the disc variety will be Blu-ray. It doesn't matter when or if blu-ray will over take DVD, HDDVD won't be in the way....so go back to your timeout little girl, you're getting your panties in a bunch....
Gus @ Jan 23rd 2008 1:29AM
So JimC, please tell me the plan? No BS,not just people will buy bcause u say so, just tell me how BR is going to beat DVD? What is the long term strategy for market DVD domination and mass market penetration?
You cant, because there isn't one, it's make as much money as the BDA can, if they can, out of a niche market before BR gets rolled by downloads.
BR is doomed, your Japanese masters greed has ruined the HD disc market, please explain how I am wrong, and what the BDAs plan is.
Vidikron (FU) @ Jan 23rd 2008 10:16AM
Gus, you're an idiot. Plain and simple. I love how you claim BR is part of some Japanese cartel when TOSHIBA was the sole manufacturer of HD DVD hardware. How unimaginably stupid and hypocritical can you be? And do you actually think BR prices will start going up? Please. The companies are smarter than that. They know they'll never see any form of mass adoption without the prices falling. Hardware prices will keep on falling just like any other electronic hardware in the world.
JimC @ Jan 23rd 2008 10:32AM
GUS see this comment and the following one after that...
http://www.engadgethd.com/2008/01/22/universal-exec-says-studio-and-hd-dvd-are-moving-forward/3#c10000103
JimC @ Jan 23rd 2008 10:34AM
This is the other comment....
http://www.engadgethd.com/2008/01/22/universal-exec-says-studio-and-hd-dvd-are-moving-forward/comments/9999840/
hothotdisco @ Jan 24th 2008 12:30AM
@ Gus
Normally, I try to keep myself civilized but you sir, are an idiot.
You honestly believe that DVD will not die out? Don't be stupid; all formats eventually die out and make way for a new one. DVD will not be around forever and its pretty obvious that Blu-ray will replace it.
As for flooding the market with $400+ blu-ray players......thats just a absolutely foolish assumption. First off, technology always gets cheaper as time goes by due to mass production. 2nd of all, just because blu-ray will own the HD market doesn't mean there will be higher prices. Don't forget; Sony has to compete with other blu-ray manufacturers such as LG, Pioneer, Samsung, etc. so there will be plently of competition to drive the prices of blu-ray players down.
Oh and you are an idiot.
bizdady @ Jan 22nd 2008 3:34PM
Universal needs to can his ass already.
Chris Frost @ Jan 22nd 2008 3:35PM
Get over it fanboys. No matter how much you want Universal's movies on your overpriced game machine. It's not going to happen.
DEEZNUTZ @ Jan 22nd 2008 3:42PM
You can keep BROKEBACK MOUNTAIN Chris...
Eddie @ Jan 22nd 2008 4:06PM
Says the dude with a reference to "deeznuts" as his handle. Please, can we all agree not to use our hobbies as our nicknames?
Besides, I'd rather have gay cowboys than gay pirates.
Godfa7h3r @ Jan 22nd 2008 6:36PM
"Besides, I'd rather have gay cowboys than gay pirates."
Hahaha! Priceless comment
Sy @ Jan 22nd 2008 8:02PM
"Besides, I'd rather have gay cowboys than gay pirates."
Actually, when it comes to HD DVD, you have both gay cowboys and gay pirates ...Brokeback Mountain and Stardust. Robert DeNiro played a still in the closet gay pirate in Stardust.
andy @ Jan 22nd 2008 3:36PM
According to my recent class on CEO speak, this means that Universal is breaking contract and going blu-ray exclusive before the end of the month right?
DrXym @ Jan 22nd 2008 4:59PM
I think its fair to say that throughout the interview Grafeo doesn't show any commitment to HD DVD beyond the day to day situation.
rg23 @ Jan 22nd 2008 3:42PM
I am still enjoying my HD DVDs and will be getting future releases from Universal and Paramount. Beowulf, Bee Movie, Kite Runner, American Gangster, Cloverfield, and Jack Ryan Collection (to name a few) in the pipeline are looking good. In fact, I just ordered 5 HD DVDs (Blu-ray exclusives here in the US) from Europe. My HD DVD player will still work even if blu-ray wins. I will not buy a blu-ray player (stand alone) until a 2.0 player comes out. In order for blu-ray to have a fast win, the BD group needs to lure either Paramount or Universal otherwise the format war will drag on.
Chris Frost @ Jan 22nd 2008 3:46PM
I just ordered a couple of HD DVD's from Amazon today as well and 1 import (Disney exclusive here in the US). I'm not too worried about Blu Ray or their immature supporters. HD DVD is still the best choice for mass adoption over the long term.
rg23 @ Jan 22nd 2008 4:10PM
@Chris Frost
What is really interesting to me is that Resident Evil series of movies, which are supposedly by Sony Pictures, are available on HD DVD in Europe. To me, its like saying Halo is on PS3 in Europe. I guess I don't understand the distibution rights of movie studios. What import Disney movie did you get?
LiqwidZero @ Jan 22nd 2008 4:19PM
It was more than likely "A Bridge to Terabithia", which is a Walden Media Production, but Buena Vista distributed in the US.
You can get an import of the Italian HD DVD release from Xploited Cinema (http://xploitedcinema.com/), and it still has loads of features.
The audio is all in English, with optional subtitles.
rg23 @ Jan 22nd 2008 4:24PM
I did see A Bridge To Terabithia in HD DVD but it was called Secrets of Terabithia.
Chris Frost @ Jan 22nd 2008 7:06PM
@RG23 - Bridge to Terabithia. I can't wait either, great flick, if just a bit of a tear jerker.
Ryan @ Jan 22nd 2008 3:44PM
Getting a little bit sick of this pro-blu engadget posts. I know Warner signs your checks...but come on.
SimbaDogg @ Jan 22nd 2008 3:48PM
this is corporate arrogance at its greatest. especially w/ the 93:7 split last week for player sales, not even counting ps3 sales, how does he realistically think they're a chance in hell for a comeback.
Chris Frost @ Jan 22nd 2008 3:54PM
Becuase 93% of 1% is nothing. HD DVD still has the best long term adoption strategy for the casual user. The real battle here is getting people to adopt HDTV and teach those people how to view it properly once they do get it.
SimbaDogg @ Jan 22nd 2008 4:00PM
Chris Frost...get your head out of your ass. Thats probably the dumbest justification you could ever give. "Though hybrid vehicles only account for 1.5% of all vehicle sales, the prius cannot be deemed successful even though it controls 80% of that 1.5%"...now imagine if someone said that to you? You'd probably have to call them a nut job.
Matthew Berg @ Jan 22nd 2008 6:03PM
You're citing figures from one week, immediatly following a major announcement regarding studio support and before MSRP was cut in half for HD-DVD hardware.
Not that Blu-ray doesn't have significant momentum, but cherry picking figures like that without context is highly disingenuous.
Gus @ Jan 22nd 2008 8:26PM
Prius, now that is a dumbest response ever!
The Prius is a niche market product, but even so, it still has viable competition, now unlike BR.
You should engage your brain before you put your mouth into gear.
SimbaDogg @ Jan 22nd 2008 8:37PM
@Matthew Berg
thats very true, we should probably wait to see how well hd dvd players are selling after the 50% fire sale thats been put on by toshiba. Thats when we can really get a true feeler on how exactly this market is performing, and whether people think the WB move will have enough clout to dissuade people from getting any red players.
@Gus
Mmm...if a prius is a member of a niche market, and hybrids account for about 1.5% of all automobile sales, and HD Media (Blu and Red) account for 1% of all dvd sales, what the HELL does that tell you about HD Media? Umm...maybe that its a NICHE market and its not widely adopted yet. So...whats your point? Anyways, the prius does have viable competition in its respective market, which is why it couldn't be compared to blu ray exactly. The purpose of me bringing up the prius example, which i think just about everyone picked up on, is just this: just because you operate in a niche market doesn't mean that a hugely dominate position (80%+ marketshare) should be regarded as less than worthwhile.
Chris Frost @ Jan 22nd 2008 3:51PM
It's all in good fun, they certaintly know how to slant any news bit to generate maximum replies.
Xyzzy @ Jan 22nd 2008 7:12PM
"Which means No Dark Knight for you or 10000 BC."
That's pretty funny, considering BD doesn't even have Batman Begins yet... *laugh*
Truth Teller @ Jan 22nd 2008 3:59PM
LMAO
Way to go Universal & Paramount!
So much for all the empty claims.......oh, oh, oh 'they're out of contract' and oh, oh ,oh oh 'they have an escape clause'.
All typically laughable Blu-ray.com fanboy BS.
HD DVD has plenty of excellent movies (and let's get real here, given the timescales these things take, even if Universal & Paramount switched tomorrow that would still be the case for years).
I'd also be inclined (what with the on-going excellent HD DVD hardware sales) to wait until June and see just how valuable a post-dated pledge really is.
Clearly Warner's stated aim of seeing a unified approach and single high def movie disc format is a bust and ain't going to happen.
(and for those who really really really want to believe I have some post-dated cheques you might be interested in cashing.
LMAO)
Whatever.
It's all far too late for Blu-ray now, the game console format.
Chris Frost @ Jan 22nd 2008 4:10PM
+1
I agree.
Another fact that really irritates Blu Ray fanboys:
According to IMDB these exclusive companies have the US distribution rights to the following number of movies:
Universal - 5331
Paramoun - 5753
Dreamworks - 95
Weinstein - 183
Total 11362 films
20th Century Fox - 755
SOny Pictures - 419
Disney Buena Vista - 727
MGM - 3639
Columbia/Tri Star - 4323
Warner Brothers - 4623
Total: 14783
Grand Total of all movies from these companies: 26145
11362/26145 = 43%
Meaning HD DVD has 43% of all catalog titles available for potential release on it's format. It's completely laughable to hear that BDA has 80% of the major studios. Who cares when Fox/Sony/Buena Vista/Disney all acount for less than 2000 movies. That's not even half of Universal's back catalog.
Blake @ Jan 22nd 2008 4:11PM
Are you a proctologist by profession?
Cos you don't half talk sh!t! ^^
Kiwi616 @ Jan 22nd 2008 4:18PM
Umm what about what really matters....THE CONTENT
If the movies sucks what good is the amount of movies a distributor has???
For instance = WB / NLC = Harry Potter and LOTR Franchise compared to Gladiator on Dreamworks or even Transformers from Universal.
I am not saying that HD-DVD doesn't have some great hits also, but you shouldn't discount it by just that buddy.
MI @ Jan 22nd 2008 4:27PM
Wow, no wonder everyone thinks your a jackass. The head of the HDVD group, who also is the head of universal, says 'HDVD can win with 2 studios and one hardware manufacturer' and you think that is a victory cry?!?! Do you believe all the press releases?
The fact of the matter is that universal is no longer under contract to produce HDVD, and paramount does have an out of their contract. It's true. If you had any sense at all your would have pointed out that even thought they DO both have a way out, they have not stopped producing HDVD. That might have some sort of meaning, but it doesn't.
From the moment that you people have been trolling out here not a one of your arguments has made any sense. Fortunately you quickly move from the arguments to silly comments, name calling and saying that facts aren't' facts because you don't want them to be.
You're really just behaving pathetically at this point.
Eddie @ Jan 22nd 2008 4:43PM
That's the truth!
DrXym @ Jan 22nd 2008 4:53PM
It's funny to hear you vacillate between supporting HD DVD and whining that Blu Ray (and therefore by extension HD DVD) can't win against DVD upscalers. You are an immature moron and I mean that most sincerely. Please grow up and get over your dead format.
Devils Advocate @ Jan 22nd 2008 5:15PM
It wont matter when Best Buy doesnt sell them.
Spin that.
Devils Advocate @ Jan 22nd 2008 5:21PM
You're probably Nfinity
Gus @ Jan 22nd 2008 8:49PM
Yay, go you blu ray trolls, yes lets destroy the competition and FK our own format in the process. what a bunch of immature idiots.
By destroying HD DVD you are relegating BR to the expensive niche market category where it will remain, where BR wants it to be!
"There are none so blind as those who will not see."
MI @ Jan 22nd 2008 11:59PM
Hey Gus, Have you ever been to like, a store or anything like that? If so you'd learn everything that you need to about how formats and product lines gain acceptance, popularity and better price points. It's not competition between two incompatible formats, but competition within ONE format. Kind of like how Sony and Samsung and LG and Dennon and Marantz and Panasonic, and Philips and Sharp are making Blu-Ray players. That's how VHS gained popularity and acceptance, same with CD and DVD later.
The fact of the matter is the only way for prices to drop, other than a lone manufacturer desperate to con a few thousand people into buying their product with clearance pricing, is for mass acceptance. You're suggesting this will only occur if their are two incompatible formats each with half of the studios supporting them so the general public never buys in at all. BUT if there is a single format with the majority of studios and hardware manufacturers supporting it, as there was with DVD (the fastest consumer electronics product acceptance in history), and as there is now with Blu-Ray that people won't buy into it because it costs more than a Colby DVD player. Good theory. Of course, on planet earth, that simply isn't the case.