As reported by Hollywood In Hi-Def (via PS3 Fanboy), Universal president Craig Kornblau apparently wants the format war to continue.
From all of this I gather that Universal hates to give consumers what they want. Truly. Let’s take a look at the points he specified and why they’re problematic (disclaimer: I own a PS3, and I love Blu Ray):
- Kornblau: Universal initially backed only one format, because it didn’t want a war. So let me get this straight: before, Universal backed HD-DVD exclusively because a format war is bad for consumers. Now, Universal is maintaining their support, because a format war is good for consumers? If it was bad then, it’s bad now. What this says to me is that they want the format war to continue, because the format they backed exclusively has not won.
- Kornblau: All the other studios get kickbacks for supporting hardware providers too. Quite true. However, the only studio to have exclusives with HD-DVD is Universal.
- Kornblau: Competition is forcing the price down. I don’t really agree with this at all. Blu Ray players are not dropping in price excessively fast. What’s more, Toshiba’s constant price dropping has all but killed the third party hardware support market. Toshiba has done a good job in dropping the pricing on HD-DVD players, by taking a huge loss. However, competitive pricing does not come from driving competing hardware vendors out of the market.
- Kornblau: Universal dropping their HD-DVD exclusivity would kill HD-DVD. Quite possibly true, but why is that any concern of theirs? Aside from having backed it exclusively from the start. Consumers are the ones who are making the choice in the market place.
- Kornblau: Blu Ray provides less interactive and connected features than HD-DVD. Universal hasn’t exactly been churning out the great next-gen must-have content on HD-DVD. What’s more, I’ve got a secret for you, Universal: I’m buying the movie primarily for the movie in high definition. Yes, extras are nice, but what I care about 95% of the time is just the movie. Plus, Blu Ray continues to innovate in this department.
- Kornblau: Backing HD-DVD is a long term and consumer-focused strategy. This is the most disingenous claim of them all. Backing HD-DVD is not a consumer-focused strategy. Universal is not looking at the market place. They’ve planted their flag in the sand and are stubbornly holding to it. If they were really consumer-focused, they would let the market decide the winner. To decide for the market is insulting.
All that said, here is an open letter to Universal, from yours truly:
To Whom It May Concern at Universal Studios,
I am a movie fan, and am disappointed that I cannot buy any of your content in high definition format. While I know you have movies available in HD-DVD, I can only play Blu Ray. What I don’t understand is why you steadfastly only support HD-DVD.
I am not asking you to drop support for HD-DVD. I understand you have backed them exclusively from the start, and do not want to waiver in your support. What I am suggesting is that you support Blu Ray as well. Just give it a try and see how the market reacts.
To continue to be the only major studio to exclusively back HD-DVD, while claiming this is for the good of the consumer, is a bit patronizing to your consumer base. The workings of the free market are such that market changes occur due to consumer choice. These subtle changes do not occur because you believe that they should be so.
The following is a list of movies and shows that I would have liked to have bought, had they been available in Blu Ray format (based on your release lists from July 2007 - November 2007):
- The Bourne Identity
- Hot Fuzz
- Shaun Of the Dead
- Serenity
- Heroes: Season 1
- The Bourne Supremacy
- Scarface
The problem is, you have a limited window. While it may be that I still want to buy all these movies later, I am in a buy-friendly mood right now, being that I have only gotten a Blu Ray player this year. I have to date already bought nine movies, and hope to buy more. I’m not even buying good movies, mind you. However, your continued
aversion to supporting Blu Ray means that I will not be buying any Universal movies. This saddens me, because in addition to the above, there are many Universal films that I would love to buy, including Jurassic Park, Spy Game, 12 Monkeys, The Blues Brothers, Back to the Future (trilogy), and many, many others. What’s more, my desire and
interest in buying these movies decreases as my Blu Ray collection increases.
Even though state-side Blu Ray is outselling HD-DVD 2:1 (as showcased in the recent multi-format release of 300), I know that this format war is still early. It could in fact be that the high definition video war will succumb to the direct-to-download model. However, this is still something you should leave to consumer choice.
I want very much to give you my money in exchange for high definition versions of your movies. Please consider my plea, along with the plea of many other Blu Ray player owners. If we have already bought a Blu Ray player, we are obviously quite willing to spend even more for high definition videos. (In fact, we have self-selected ourselves as
people who are willing to spend large sums of money!) Do the capitalist thing and listen to your potential customers. We would certainly be willing to pay!
Sincerely,
John
Now, for some rampant unproven speculation, which the Internet is famous for! This is why I precede all of the following bullet points with “I believe” — it means it’s an opinion, and not fact.
- I believe Universal is getting kickbacks from major corporations to continue their exclusive backing. (Microsoft? Hello?)
- I believe these kickbacks far exceed the revenue that Universal anticipates they would receive from Blu Ray sales alone.
- I believe Universal thinks that they can boost their multi-format sales, by getting people to buy into HD-DVD as much as possible now, then switching to Blu Ray when it emerges later, forcing a re-buy.
- I believe Universal is stubborn, in that they wanted to support one format from the start, and are unwilling to change their stance lest they have to admit a mistake.
- I believe Universal hates the idea of backing anything Sony-related (as Blu Ray is), as Sony has a competing movie studio.
- I believe Universal thinks that the high definition market is still too small for serious consideration.
There you go! Am I right? Horribly off? Let me know in comments. Hi HD-DVD fanboys!