Paramount payoff confirmed by Viacom earnings report
Although it's all water under the bridge now, we still find it interesting that Viacom's recent earnings statement confirmed that Paramount received compensation for dumping Blu-ray. But contrary to the New York Times article, Variety is reporting that it was only $29 Million, instead of $150 Million. This is of course only cash, and it is still entirely possible that the other $121 Million included future revenues that didn't materialize once things fell apart, but we have a hard time believing Paramount received that much in promotional services or free replication. And while the Warner payoff rumors weren't from a source as sound as the NYT, we'll still be keeping an eye on revenue statements from Engadget and Warner's shared parent company all the same.[Via Format War Central]
Reader Comments (Page 1 of 1)
DrXym @ May 6th 2008 12:15PM
It would be easy for monies to be in the form of promotional assistance, royalty waivers, software licences etc. In the end it would still amount to $150 million even if it was money saved rather than hard cash handed over.
TrentD @ May 6th 2008 12:53PM
Exactly - anyone who thought HD DVD just handed over a one-time $150 million check (looking at you, Blu-ray.com) to buy Paramount's allegiance was sadly mistaken.
Achilles @ May 6th 2008 12:21PM
You would think, but there is no evidence of this happening yet. 90% Blu crap has been released. *sigh.
Patience is overrated!!!!!!!!!!!!!!!!
:)
WebDev511 @ May 6th 2008 12:53PM
They couldn't have just sucked it up an released Bee Movie and Sweeny Todd for some extra scratch? Oh well.
I will be interested in how much Warner and the others got for going Blu or NOT going neutral. Anyone want to bet it was more than $29m ?
LiqwidZero @ May 6th 2008 1:54PM
Who cares about Sweeney Todd?! I wanted There Will Be Blood and the UK version (Paramount Vantage) No Country for Old Men. But at least There Will Be Blood will be on BD, soon.
dj496 @ May 6th 2008 1:05PM
Things like this always come out after it's no longer a hot/embarrassing issue.
Landlocked @ May 6th 2008 1:57PM
The retail prices for Blu discs have gone up and no BOGO to be found.
Rest in peace, dear HD DVD friend.
truegamer @ May 6th 2008 2:11PM
Costco B1G1 Select Fox Titles
Titles Included...
Ice Age: The Meltdown
Alien vs. Predator
Night at the Museum
Eragon
Fantastic 4: Rise Of The Silver Surfer
Die Hard
Die Hard 3
The Simpsons Movie
The Sale Supposedly Runs From May 5 - May 11 ONLY
More Info and Proof at formatwarcentral.com
truegamer @ May 6th 2008 2:13PM
Buy.com Blu sale
http://www.buy.com/specialty_store_6b/blu-ray-dvds-action-adventure-horror-westerns/65747.html
Vcize @ May 7th 2008 2:12AM
Truegamer, not a single one of those deals comes anywhere close to the deals that were out there before.
Amazon BOGO's with the HD10 stacking coupon had new release blu-rays down to $8 apiece with ENORMOUS selections. At one point there was a deal where some of the lesser titles (like most of the ones mentioned in those deals above for 3x as much) were as low as $5 a pop.
For the $8 movies we were talking A+ titles like 300 and the Pirates Trilogy, not Artie Lange's Beer League. Now in your list 300 is "on sale" for $19.95.
Nfinity @ May 6th 2008 2:07PM
I'm curious to see if Engadget and other will report Warner and Fox books. I'm pretty sure it will be insane amount compared to Viacom's which is pretty much nothing.
It's absolutely laughable to say that it was a payoff. Did anyone think that this money might've been from SONY? Viacom went from HD DVD exclusive to neutral FIRST. What if this money was paid by BDA?
It wouldn't surprise me.
truegamer @ May 6th 2008 2:11PM
LINK.. Provide link
WordSlinger @ May 6th 2008 4:50PM
"It wouldn't surprise me."
Just like it doesn't surprise anyone on this site that you can turn any story into an anti-Blu conspiracy despite your claims of being "over" the death of HD-DVD.
And no, nobody thinks it could be from Sony except you... because they read the article, which you obviously didn't... or else you would have seen this:
"....revenue on one-time items including a $29 million payout from Toshiba for Par’s exclusive backing of the HD-DVD."
It's funny how people who claim to be fans of all things High Def come to this site just bash a brand name because it wasn't the one they chose from the start. I thought this site was for High Def enthusiast who want to see and hear things in as good of quality as possible... now it seems more like a battleground for bitter brand-name loyalists who care more about what color your camp is than how good a movie looks or sounds.
And now that the war is over, the arguments go from whether or not Toshiba subsidized their players and paid off studios to whether or not a certain amount of money is high enough to "count" as a subsidy or payoff. Whether they subsidized their player by $5 or $50 dollars is irrelevant, as it whether they paid paramount $29 million or $290 million. Just because Sony may have paid more doesn't negate this. The way the red camp loyalists continue to move the goal posts is what is truly laughable.
kcmurphy88 @ May 6th 2008 5:01PM
Is it a $29 million payoff, or did it just cover Paramounts expenses for killing their blu-ray line, current and in-progress. They had substantial money tied up in product development that they had to eat. Not to mention some unreleased discs that went into the landfill.
Nfinity @ May 6th 2008 6:36PM
It's fascinating how people think that only Paramount took money? Are you kidding me? Warner and Fox together probably gotten a billion in money and marketing and production subsidy.
Are you all that naive? Jesus. On one side Toshiba was paying off Paramount, which of course there's no trace of $150m bullshit that was hyped up everywhere and somehow Warner, Fox, Lionsgate and other studios never got a dime from Sony. Are you that naive or simply unable to cope with the fact that it was paying off game that Sony started first.
I just said, I'd like Variety to do their such great investigative work and show the numbers that other studios got. This whole bullshit is really ridiculous.
In the end, it will be that Sony and BDA didn't pay anything to anyone and somehow HD DVD paid Paramount. LOL.
That's just total disconnect with reality.
WordSlinger @ May 6th 2008 6:51PM
Nfinity, not one person who replied to your comment suggested only Paramount was paid off. In fact DEEZNUTS openly agreed with you that the Blu camp has made likely payoffs and I said that Sony's bigger payoffs seem to negate Toshiba's in the eyes of red fans.
Who are you claiming is being naive and disconnected with reality here because you're the one responding to claims nobody has made in this thread yet (as of whatever time it is I'm posting this comment)?
truegamer @ May 6th 2008 2:09PM
Fry's Ad 5/1-5/6 $14.99 disks
http://newspaperads.mercurynews.com/ROP/ads.aspx?adid=6202064&advid=32664&type=
Mr. E @ May 6th 2008 4:26PM
Thanks for the info on this, Truegamer! I picked up a couple of titles today at lunch.
For everyone complaining about price, these kinds of loss leader sales are only going to increase as Blu-ray's popularity rises. Before you know it (I predict within three years), there will be $10 bargain bins of BDs.
Landlocked @ May 6th 2008 2:16PM
Holy freaking cow! I don't see these prices when I shop at the supposed "best deal in town place" Wal Mart!
lucyfan62 @ May 6th 2008 3:04PM
Don't forget Toshiba paid a hefty sum to get the first season of Star Trek out on HD DVD as well. I'm sure that price was also part of the other $121 million. That leftover figure was also the reason it took so long for Paramount to finally admit they were going Blu after the HD DVD debacle. They had to come to some monetary agreement with Toshiba for remaining exclusive for as long as they did. I doubt they'll get the entire $150 million.
As for Blu-ray disk prices going up, I haven't seen any of that. People forget that during the holidays, there are sales and TEMPORARY price reductions to move product before and after Christmas (and there was still a format war so both camps had to pull out all the stops). This time of year is a traditionally slow one for retail so you don't see a lot of sales or BOGOs anywhere. It's not just Blu-ray disks. And guess what? Prices are going up on everything! Gas and food in particular, so don't single out Blu-ray just because you're still longing for your failed HD DVD format. Toshiba has faced reality...it's time the rest of the HD DVD adopters do as well! Chances are had the shoe been on the other foot, you'd be whining about the increase in prices of HD DVD disks right now as well! Come the holiday season, there will be plenty of sales and price reductions as well as some highly anticpated titles from all of the studios!
WordSlinger @ May 6th 2008 4:28PM
"Toshiba has faced reality...it's time the rest of the HD DVD adopters do as well! Chances are had the shoe been on the other foot, you'd be whining about the increase in prices of HD DVD disks right now as well!"
... exactly. The idea that Toshiba is a consumer's best friend and would never cut back on discounts and sales had they won the format war is just laughable. Both camps sacrificed and made deals to try and win, and regardless of who won it's common sense that they would take a breather from their "war-time" strategy to try and recoup some of their loses. Why this is shocking or proof of some big scam by the Blu is beyond me.
Mr. E @ May 6th 2008 4:30PM
That's all true, and at least when we pay an extra $5 for a new release Blu-ray over the same special edition DVD, we're getting a better experience. Unlike when we pay double at the gas pump compared to a couple of years ago.
Gus @ May 6th 2008 7:13PM
The BDA, such a sweet innocent little group, I bet they sell home made apple pie as well.
EQC @ May 7th 2008 4:55AM
I hope you're not being all weird like NFinity and trying to act like somebody *is* saying that BR are some kind of heroes? As WordSlinger pointed out, nobody's claiming the BDA played the game any differently than HD DVD.
Nobody's denying the BDA made pay-offs just like HD DVD did...nobody fails to realize that the BDA is a profit-making business.
Please don't put words in the mouths of your "enemies" and then act like they're stupid for saying them - they didn't.
Rick Gobantes @ May 6th 2008 8:53PM
Whatever the amount was, it was worth it. Look at the exclusives HD DVD received from the payoff. If HD DVD did not go under, Bee Movie, Cloverfield, There Will Be Blood, Iron Man would have been on the list as well. Paramount had the best lineup, period.