Why Universal won't go neutral. Unless... - High-Def Digest Forums
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Old 05-31-2007, 05:54 PM
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Default Why Universal won't go neutral. Unless...

...Disney and Fox go neutral first. Now before everyone attacks me, I support both formats, almost equally. So I intend no bias with this post, merely my analysis of the situation (non-professional mind you).

Basically I see it like this. Universal currently sits as the only major exclusive player for HD DVD. Which means they have no competition from any other exclusive studio. So essentially they are only competing against two other majors. They basically have a much better chance that starved HD DVD consumers will buy their products. Sure, they are limiting the breadth of their target market by remaining exclusive, but they take a much bigger piece of the pie within that market segment. If they went neutral, all of the sudden they have to compete against Fox, Disney, and Sony as well which diminishes their returns on increased costs of producing in both formats. However, should Disney or Fox cross over and now Uni has to compete with them anyway, they might as well go neutral and try to maximize their user base. To sumarize, by staying HD DVD exclusive, they lose potential market (Blu-Ray), while maximizing sales within their given market (HD DVD) due to less competition, all the while keeping costs at a minimum.

So my forecast is that Uni won't ever go neutral first. They may follow, but Disney and Fox would have to make the first move. Just my thougths. Take them or leave them...

Last edited by alkie4life; 05-31-2007 at 05:58 PM.
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Old 05-31-2007, 06:16 PM
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That kind of makes sense. Yes Universal is benefiting by being the only exclusive hd dvd supporter because of "starved HD fans" But this wouldn't change if they went blu-ray as well would it? They'd just get more potential customers?

Main reason i don't see them switching is the cost involved to set up blu-ray production and whatever deal they have with HD DVD.
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Old 05-31-2007, 06:16 PM
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Good points. They may only have 30-40 percent of the market, but they have it TOTALLY.

I still think the stockholders will eventually get fed up and demand cross-format support, but that is most likely a year or more away.
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Old 05-31-2007, 06:17 PM
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I agree. In addition to what you posted, Universal seems to be the one studio that really pushes for its chosen format (except for Sony Pictures and Disney somewhat, of course).

When BD+ is cracked, I see Fox either going neutral or giving up on HD discs altogether. Their support so far has been basically non-existent.
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Old 05-31-2007, 06:32 PM
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Maybe I'm a little slow today, but I don't understand how being the only exclusive studio provides any sort of benefit. If Universal started releasing on Blu-ray, is there some reason their sales would go down? Show me somebody who diddn't buy a Universal title on HD DVD solely because it was also available on Blu-ray, and I'll show you somebody who bought that title on Blu-ray.

According to Warner, if they released titles on Blu-ray they're sales would increase by more than 200%.

Actually they'd go up a lot more than 200% because to large extent Universal going neutral would signal the end of the format war and a new wave of consumers would then buy in and existing Blu-ray customers would gain confidence and be more likely to buy, and loyal HD DVD fans would do what loyal fans do and buy everything they can.

Which all makes me wonder if Universal is possibly dragging their feet about going neutral because they specifically want to prolong the war....

Last edited by Thulium; 05-31-2007 at 06:34 PM.
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Old 05-31-2007, 06:35 PM
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Quote:
Originally Posted by chad5871 View Post
I agree. In addition to what you posted, Universal seems to be the one studio that really pushes for its chosen format (except for Sony Pictures and Disney somewhat, of course).

When BD+ is cracked, I see Fox either going neutral or giving up on HD discs altogether. Their support so far has been basically non-existent.
How many movies have Fox released so far?
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Old 05-31-2007, 06:41 PM
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Quote:
Originally Posted by divian View Post
How many movies have Fox released so far?
32 and 4 of them were MGM cataloge titles, Pretty pathetic comeing from a giant studio with great history.
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Old 05-31-2007, 06:44 PM
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Universal Studios will not go neutral until 2008 at the earliest.
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Old 05-31-2007, 06:52 PM
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Quote:
Originally Posted by SpartanJohnson View Post
Universal Studios will not go neutral until 2008 at the earliest.
Great guess! I'll try that, Disney and Fox will go nutral before Universal does!

isn't guessing just a stupid wast of time.
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Old 05-31-2007, 07:01 PM
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That's some interesting thinking... but the "starved HD DVD supporters" are buying more Warner Brothers titles then Universal titles. And Universal wouldn't lose their HD DVD customers if they started supporting Blu-Ray also.
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