Here’s a question for your diary: What will you get for your computer? 

Based on what’s currently available:

1. A 2x HD-DVD recordable drive and 1x HD-DVD recordable disks (4 times slower than recording to a 16x DVD-R).

2. A 6x Blu-ray recordable drive and 4x Blu-ray recordable disks.

Or will you base it on the future with reference to the current successful tests by manufacturers?

1. HD-DVD with 51 GB three layer disks.

2. Blu-ray with 100 GB three layer and 200 GB six layer disks.

Another point: Right now if you want a dual-format drive for your PC you are stuck with it only reading HD-DVD disks while it can record to Blu-ray disks.

Firstly as regards to the difference between HD and SD DVDs, I have to agree that those who say they can’t see a significant difference, reall yneed to sort their kit out.
I worked on the visual FX for Bourne Ultimatum and therefore worked on scanned frames viewed on two 24” Sony CRT pro monitors. What I can say is that I saw a very similar image even on my 720p Sagem 50” DLP RPTV, when replayed on the Onkyo HD 805, and was even suitably impressed when viewed on 28” Sharp LCD at 720p.
And it’s not just the detail and higher resolution but equally, if not more so, the extra dynamic range and colour accuracy and saturation.
As for the format choice for DVD distribution, the financing and distribution rights, in relation to the best returns from the mass global market, will ultimately influence the final choice and, given the present social-economic climate, we might quite possibly still end up with both for some time to come.

Thanks for that, BigBrain. I truly appreciate the time you took to outline the process.

Steve,

I used to be in distribution of video media, and unless things have changed dramatically, it usually goes something like this;

A studio secures ownership of intellectual property (ie, the idea of, say “Blade Runner” as a story.) The terms of that contract with the originator (were it to NOT be an employee of the studio) would dictate what outlet (media,etc.) the studio could expect to publish under.

Publishing is not the same as printing (regardless of media) it is just “making ready” for printing/duplication.

The product (ie, “Blade Runner The Movie”) is either licensed for reproduction; Like you stated “I will create DVD’s and resell them, and give the studio 20%, thank you very much” or a studio may pay a print house to create the DVD and distribute it themselves via sub distributors, like “I am the studio and I have asked XYZ to produce 10mil copies of Blade Runner and once delivered our distribution team will send them to wholesalers who will send/resell them to retail stores.

I believe newer movies are often handled by the Studio, as new releases, and catalog titles are licensed out for reproduction. But in no cases are the media created by the studio directly.

With regard to format choice at the studio level the decision to choose BD or HD will generally be affected by what media the studio believes will return the most money to the studio based on sales, because regardless of how the media gets to market at some step the studio collects for every unit placed - License wise or per unit sales wise.

It may seem counterintuitive early on to “choose a side” as a studio, but regardless of one format’s merits, strength in numbers will prevail. It is as much about positioning as numbers. Warner probably doesn’t want to be know as the company that didn’t believe in Blu Ray publicly in addition to having sold more Blu Ray.

The studios switching allegiance is probably just leader following. Once a format has a majority hold in a media war no one likes to be the last to say “Ok, I give up”, or worse have 10mil copies of a movie in a format no one is selling at retail prices. Its all a bit of trend reading, I’m afraid.

If a studio alienates itself from customers by “going down with the ship” (and I only use that term because studios have to think worst case scenario), it does pretty hefty damage to itself. If you think about it, would you rather alienate the HD DVD fans by going Blu Ray, or alienate all customers (eventually) if HD DVD was to go away?

If you stay neutral, produce equal amount of both format and one dies, who pays for the wasted media? The customer has to eat it in your $34.95 releases, instead of them being $19.99.

Your target audience should always be the majority, even if that happens to be artificially occurring.

So Ben, explain this to me (and I’m not challenging you, this is an honest question), how does this all work? Does a DVD duplication company pitch to a movie studio “Hey, we’ll pay you $x in order to produce and sell movie Y.” And then the duplication company puts the disks on store shelves and pockets any profit above and beyond that fee they paid the film company?

Or does the film company go out and pay a duplication company to produce physical media, and then place that media on store shelves?

I’m genuinely curious about the process that gets a film from the studio onto the shelf at Best Buy.