Warner Bros. Drops Blu-ray License, Chooses HD DVD

Update: Warner Bros. has now ditched the HD DVD camp altogether and solely supports Blu-ray.

Update: After it seemed clear that Warner had dropped Blu-ray, the company said its comments were "misquoted and misconstrued" and they would continue to support both Blu-ray and HD DVD.

Not only has HD DVD made inroads in the battle against Blu-ray with extreme deals on players in the last few weeks, but apparently Warner Bros. didn't renew their Blu-ray license this past Wednesday. There has been talk by WB vice-president Dan Silverberg about adopting one format or the other going into this year's fourth quarter, but as of Wednesday there had been no publicly announced decision made. With WB not renewing the $40000 license, it seems they have chosen HD DVD.

The editor over at hi-def.com has put together a list of why WB would probably chose HD DVD over Blu-ray and it's quite convincing. Here it is:

1. WB has consistently put more support behind HD-DVD than Blu-Ray. Batman Begins and V for Vendetta are perfect examples of titles released on HD-DVD months before Blu-Ray. The Matrix is still ONLY available on HD-DVD because the Blu-Ray player profiles did not have mandatory support the advanced features of PiP and True HD. These features are mandatory on ALL HD-DVD stand-alone players.

2. Cost of Manufacturing - Blu-Ray yields are bad. Apparently 2 or 3 of 10 are good. The cost per disk is also high. Blu-Ray is over 5.00 per disk vs 1.00 to 1.50 for HD-DVD.

3. Cost of implementing interactive features such as PiP (overlay for commentary or tech specs/GPS like Miami Vice or Fast and Furious Tokyo Drift) and Web Interactivity is much cheaper. To program these features for Blu-Ray one must use a programmer who MUST write near a hundred lines or more of code. To implement HDi which is similar to HTML, one does not need to be a programmer which means less cost per disk.

4. Incompatibilities - Many early adopters of Blu-Ray will have issues with playback in the future due to Blu-Ray hardware being very different from manufacture to manufacture because the specs were not mandatory till TODAY. New players that are released after today will probably be ok but old players could see unexpected problems. Beware..

5. HD-DVD Player Price - We all know that player prices are dropping like crazy. Tomorrow the A2 can be had for 98.00 and you can buy the A2 from Amazon, Best Buy, Circuit City and Walmart (starting Saturday) for under 200.00. LOW PRICES is ALWAYS the beginning of mass adoption and with most consumers not taking full advantage of their HDTV's, these cheap players are the perfect opportunity to acquire the latest and greatest for cheap.

6. WB has already said that Home Players sales are the sales that REALLY matter and that PS3 title sales cannot be predicted because you do not know how many PS3 owners will buy movies. When someone purchases an Toshiba HD-DVD or 360 HD-DVD Player you know those consumers WILL buy movies or they would NOT have made the purchase at all. The PS3 is a game machine first then Blu-Ray Player second. For Blu-Ray to make a huge dent with PS3 consumers would need to purchase more than one (PS3) or you will have people fighting over watching movies or playing games (in many households, not all). Nielson and other stat trackers do not count the PS3 as part of the Home Player sales.

Now, everyone is locked on the 2 to 1 software lead Blu-Ray has over HD-DVD. This means nothing when the format is FAR more expensive to produce content for and with the PS3 the Blu-Ray camps has like a 10+ to 1 hardware lead when it comes to players. With such a large hardware lead their lead should be much more but it is NOT as the PS3 is not really producing the numbers these studios expected. In fact, if it were not for the PS3, Blu-Ray would be dead ALREADY!

TVSnob we'll update you on this when we know more.

Via Hi-def.com

November 2, 2007

Warner Bros. Drops Blu-ray License, Chooses HD DVD