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Sony Paid Warner Bros. $400 Million to Go Blu-Ray?

Posted by ScuttleMonkey on Friday February 22, @04:02PM
from the beats-having-to-say-hd-dvd-all-the-time dept.
eldavojohn writes "How much would you pay to be the leading video media technology right now? Is $400 million too much? Sony didn't think so and this article speculates that's how they won the Hi-Def format war. 'With billions of dollars in global sales at stake, experts had predicted the Toshiba-Sony battle would go on for years - not unlike the 1980s battle of videotape formats between VHS (Matsushita) and Betamax (Sony). That war lasted a decade, leaving Sony battered and humiliated. So how did this epic battle come to such an abrupt end? The answer lies in part with the bruising Sony experienced with Betamax, which, like Blu-ray, was also the better product on paper.'"

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  • Yeah right. (Score:5, Funny)

    by Anonymous Coward on Friday February 22, @04:04PM (#22520352)
    Next they'll be saying Sony would put rootkits on CDs or something...
  • No more HD-DVD? (Score:5, Insightful)

    by esocid (946821) on Friday February 22, @04:06PM (#22520368)

    Third, the company sold Blu-ray to rival movie studios with the promise of superior digital copyright protection.
    There you go right there.
    1. Promise the movie companies that your formats are less prone to being pirated.
    2. ?
    3. Profit!
  • Betamax wasn't better. (Score:5, Informative)

    by RightSaidFred99 (874576) on Friday February 22, @04:10PM (#22520428)
    VHS had longer recording times, and that is what the customers wanted. This is proved by the fact that VHS "won", and ergo VHS was "better". Betamax did have better video quality, but it was not "better" in every dimension.
  • Even for /., bad summary and headline (Score:5, Informative)

    by DragonWriter (970822) on Friday February 22, @04:18PM (#22520558)
    The article does not say that Sony paid Warner $400 million. It merely states that there was a bidding war between Sony and Toshiba and that unnamed "analysts" have suggested that payout may have been "as much as $400 million", though no one who knows anything is saying anything. Actually, the summary could have been good with a small change:

    Is $400 million too much? Sony didn't think so and this article speculates that's how they won the Hi-Def format war.


    Should read:

    Is $400 million too much? This article speculates that Sony may not have thought so and goes on to speculate that's how they won the Hi-Def format war.


    Really, other than the really obvious things we all know (Sony won the format war), there aren't any facts in the article, just speculation and some rather weird ideas from a variety of sources. Like Professor Xavier Dreze and his suggestion that "PlayStation buyers ... unwittingly embraced Blu-ray and undermined HD DVD." As if PS3 buyers were shelling out the high price of the console without realizing that it was a Blu-ray player, and just started purchasing Blu-ray discs without any consciousness of their actions. To the extent that PS3 owners embraced Blu-ray at all, they didn't do it "unwittingly".
  • $ony? (Score:5, Funny)

    by krazycraft (983109) on Friday February 22, @04:20PM (#22520580)
    So we should starting calling them $ony?
  • Plus and Minus (Score:5, Informative)

    by TheSync (5291) * on Friday February 22, @04:42PM (#22520892) Homepage Journal
    VHS won the consumer war over Betamax, but Betacam [wikipedia.org] (that used the same tape cassette) went on to become the dominant professional video format.

    Now BluRay won the consumer war, but it is unclear if the professional disk version called XDCAM [wikipedia.org] will win the professional format, as pro video folks moving beyond tapes are also looking at flash-based systems like DVCPRO P2 [wikipedia.org] , and even Sony now offers professional XDCAM EX on SxS [wikipedia.org] flash memory.
  • Just Sony? (Score:5, Informative)

    by hansamurai (907719) <hansamurai@gmail.com> on Friday February 22, @04:43PM (#22520918) Homepage Journal
    A lot of people don't realize that Blu-Ray is more than just Sony, there are three levels of membership in the Blu-Ray Association. Currently there are 18 board members (top level), 65 contributers, and over 200 members. Sony is the obvious front company for the association because of their reliance on the technology for the PlayStation 3, but there are a lot of groups that have a big stake in the project too.

    Maybe Sony did pay Warner the big bucks for the commitment, but I'd be surprised if they're the only ones making deals like this.

    http://en.wikipedia.org/wiki/Blu-ray_Disc_Association [wikipedia.org]
    • Re:free market? (Score:5, Insightful)

      by FauxPasIII (75900) on Friday February 22, @04:09PM (#22520414)
      No they won't. For that crowd, bribery, collusion and cartelism are all part of the free-market experience, and they like it just fine! Just so long as the gummint doesn't butt in on all the fun.
    • Re:free market? (Score:5, Insightful)

      by hal2814 (725639) on Friday February 22, @04:44PM (#22520928)
      Why? Sony made a smart business move wooing their competitor's biggest supporter with money. Toshiba lost out but if WB was the only thing keeping them alive, then it wasn't like their planning was exactly stellar. They deserved to lose at that point. WB doesn't care one way or another as long as their content sells. They don't really have a horse in this race even though they've acted like it. They could easily abandon BluRay tomorrow. The only party that didn't get what they wanted out of this deal was relying on another company's non-binding agreement to keep their entire product line alive. If you're that upset about it, then feel free to release your content on some other format. The free market lets you do that.
      • Re:free market? (Score:5, Insightful)

        the 'state'

        It's spelled 'we, the people', dumbass. The 'problem', such as it is, isn't the system, but your particularly shitty implementation of it.
        • Re:free market? (Score:5, Insightful)

          by Penguinisto (415985) on Friday February 22, @04:48PM (#22520994) Journal

          the 'state'

          It's spelled 'we, the people', dumbass. The 'problem', such as it is, isn't the system, but your particularly shitty implementation of it.

          ...shitty implementation of which system?

          We got to see at least three major (and differing) implementations of Marx' setup. The number of deaths from it climbs up into the hundreds of millions, all told, and in places like North Korea, still climbing at horrific rate. Problem is, too many people are eager to claim their actions in the name of "the people", but the reality ends up being just the opposite. I think the USSR lasted approximately three years before it stopped being about "the people" and started being about "the state" (and yes, there is a distinction).

          Capitalism (as practiced) isn't exactly a perfect system either (far, far from it). Quite frankly, it can outright suck at times. OTOH, it does have a tendency to keep its body counts down to a much more acceptable level.

          Socialism? Cool... now who gets to fund it all when the majority of a populace figures out that they can do just fine without actually having to work for what they get? Ayn Rand may have been a nut case, but she does have a point - even economics has an ecosystem that requires each part of it to function well enough to survive. Humans are too damned lazy in nature to be eager about providing excessively for others in a system where they objectively don't have to.

          Now here's the weak link in your arguments as per the free market... Collusion only works for as long as the people are willing to fund it. If not enough people buy Blu-Ray gear to justify the costs going into it, it eventually dies. If something freer, easier, and cheaper comes along (pick at least two) Last I checked, a lack of Blu-Ray gear won't prevent me from eating tonight, nor will that lack prevent me from drinking clean water, or having a nice warm environment in which to sleep tonight. This in turn leads to apathy among the larger population, which in turns leads to...

          ...fact is, the problem isn't the system per se - the problem is that too few people actually give a damn enough about forcing a change in the nastier incidents within it, at least not until the impact of any aspect affects them personally.

          /P

      • Re:free market? (Score:5, Insightful)

        by Sciros (986030) on Friday February 22, @04:41PM (#22520876) Journal
        Without some regulation, what happens is the gap between the haves and the have-nots increases even further. This isn't good for the economy of a country as a whole, by the way.

        There's nothing insightful about your post; it's typical anarchist rhetoric, bound to no historical precedent or foresight.
    • Re:Market Isn't Even Ready (Score:5, Insightful)

      by robizzle (975423) on Friday February 22, @04:15PM (#22520528)
      I don't think the availability of high quality downloads should effect whether or not the market is ready for HD media. Instead, the limiting factor is the ubiquity of high def TVs in the household; there is no sense in getting a blue ray player if you have a 480 TV.

      Conversely, I think the lack of high quality downloads would actually spur increased demand for the delivery of high quality content though other means (in this case, HD discs.) If people have high def TVs, they are going to want high def content. If they can't get high def content from the internet, they will try to get it from high def media.
    • Re:Market Isn't Even Ready (Score:5, Interesting)

      by edwardpickman (965122) on Friday February 22, @04:25PM (#22520672)
      Why is everything about download? The primary reason people download is for file sharing sites so some how I don't think Sony is bemoaning loosing that business. I'm old enough to have spent my whole childhood preVHS. The early Betamaxs hit in my late teens but only recorded an hour and there were no prerecorded tapes. We didn't have cable in my area so unless you saw a movie the first week or so of it's release you had to hope for a cut down TV version of the film. I find it amazing how spoiled people have become in a little over a generation. Technology just isn't moving fast enough to suit their own personal needs. A hundred years ago most people still rode horses or walked, there was no radio and TV was decades away. Even movies were a rare treat and they were all shorts. These days if they can't get HD video beamed directly to their iPods they think we're still in the stone age. BluRay was never meant as a download format. Apples and oranges. When transfer rates get up to the point of supporting HiDef downloads I'm sure there will be yet another format. You might as well complain about not being able to download Hi8 movies. It was never intended as a download format.
    • Re:Market Isn't Even Ready (Score:5, Informative)

      by morari (1080535) on Friday February 22, @04:47PM (#22520978) Journal
      I wish we could stop hearing about streaming video. I like having my content conveniently on actual media that I can access instantly whenever I want without having to go through or ask anyone else. Most of the world doesn't even have broadband at all, which I think is a far more important problem than people not being able to download and redownload gigantic movie files because they've never heard of a disc binder.
    • Re:Or... (Score:5, Informative)

      by PrvtBurrito (557287) on Friday February 22, @04:21PM (#22520606)
      Uh, HD-DVD's are: 1) region free 2) not a rushed to market technology (no customer screwing profile x.x limitations) 3) half the price 4) has more interactive features in contrast blu-ray store more space. Are you guys that obtuse?
    • Re:Or... (Score:5, Interesting)

      by evilviper (135110) on Friday February 22, @04:35PM (#22520824) Journal

      It stores more data. From an end user perspective, isn't this pretty much the #1 thing that matters?

      No, I'd say capacity was the #2 thing that mattered.

      #1 was: Blu-Ray discs don't get scratched.

      Granted, geeks know that the DRM on blu-ray is harsher than that on HD-DVD,

      "Geeks" here on /. "know" a lot of things that aren't true...

      • Re:Or... (Score:5, Interesting)

        by powerlord (28156) on Friday February 22, @04:26PM (#22520684)

        From a movie-watcher's perspective, BluRay has absolutely 0 technical advantages.


        Not entirely true. It had at least ONE major advantage, less market confusion with DVD.

        I've seen at least two instances personally (not counting the numerous anecdotes mention here on slashdot :) ) where consumers were confused that they needed a new player to watch HD DVD discs, since they owned a DVD player and an HD TV.

        With Blu-Ray, there was much more of an instinctual "This is a new format that needs a new player".

        I'd also wonder if Blu-Ray's choice of using Blue for their media vs HD DVD's Red made a difference from a psychological point of view. Most people associate Red with Danger, while Blue is usually associated with Calmness.
        • Re:Or... (Score:5, Insightful)

          by RightSaidFred99 (874576) on Friday February 22, @04:28PM (#22520712)
          Nah, I don't buy it. It was all about politics and business, not technical merit. HDDVD could have scaled capacity easily, and in fact already had. This just came down to Sony being better at playing the game.
      • Re:Or... (Score:5, Insightful)

        by evilviper (135110) on Friday February 22, @04:32PM (#22520770) Journal

        but Toshiba figured out how to top 50GB using HD-DVD discs as the technology got more mature.

        3-layer HD DVDs was just a PR stunt. None were ever produced, and I'm willing to bet that none of the existing HD DVD players could read them, so it might just as well have been a new format that nobody would have adopted.

        Sony demonstrated much, much higher numbers of layers on Blu Ray discs as well.