Even though Warner Bros. Home Entertainment claims that the decision to exclusively support Blu-ray high-definition video format and drop HD DVD has been very well thought through, Toshiba Corp., the main backer of HD DVD, said in its statement that it was surprised by the decision and expressed concerns about HD DVD-related “contracts” between Toshiba and Warner.
“Toshiba is quite surprised by Warner Bros.’ decision to abandon HD DVD in favor of Blu-ray, despite the fact that there are various contracts in place between our companies concerning the support of HD DVD. As central members of the DVD Forum, we have long maintained a close partnership with Warner Bros. We worked closely together to help standardize the first-generation DVD format as well as to define and shape HD DVD as its next-generation successor,” the statement by the Japanese electronics conglomerate reads.
Earlier on Friday Warner Bros. Home Entertainment said it would cease to release movies on HD DVD starting from May, 2008, and will concentrate exclusively on Blu-ray format. Various rumours around the Internet claimed that the Blu-ray disc Association provided “incentives” worth $500 - $620 million to Time Warner, the parent company, but the latter denied those allegations. Another rumour suggests that Warner’s Blu-ray exclusivity will only last till Q1 2009 and that the company got $450 million for that.
“We were particularly disappointed that this decision was made in spite of the significant momentum HD DVD has gained in the US market as well as other regions in 2007. We will assess the potential impact of this announcement with the other HD DVD partner companies and evaluate potential next steps. We remain firm in our belief that HD DVD is the format best suited to the wants and needs of the consumer,” Toshiba said in the statement.
Blu-ray and HD DVD formats compete for replacing the DVD standard. With Warnet’s announcement, among Hollywood studios Blu-ray has a substantial advantage over HD DVD with support from New Line Cinema, Sony Pictures, Walt Disney, Warner Bros. and Twentieth Century Fox. HD DVD is currently supported by New Line Cinema, Paramount Pictures/Dreamworks and Universal Pictures. Since New Line is controlled by Warner, it may cancel plans to release its movies on HD DVD.
“While Warner’s decision is a setback for HD DVD, the consumer has benefited from HD DVD's commitment to quality and affordability – a bar that is critical for the mainstream success of any format. We believe widespread adoption of a next generation format will ultimately be determined by the consumer,” a statement by HD DVD Promotional Group reads.
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