DreamWorks waiting for cue from Toshiba on Blu-ray

LOS ANGELES Wed Feb 27, 2008 6:07am IST

A silhouette of a shopper is reflected in an advertisement board of Toshiba Corp's HD DVD in Tokyo February 18, 2008. DreamWorks Animation SKG Inc said on Tuesday it was locked in an exclusive deal to distribute DVDs on Toshiba Corp's HD DVD format even though the Japanese electronics maker plans to quit the technology. REUTERS/Issei Kato

A silhouette of a shopper is reflected in an advertisement board of Toshiba Corp's HD DVD in Tokyo February 18, 2008. DreamWorks Animation SKG Inc said on Tuesday it was locked in an exclusive deal to distribute DVDs on Toshiba Corp's HD DVD format even though the Japanese electronics maker plans to quit the technology.

Credit: Reuters/Issei Kato

Related Topics

Election 2014

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

LOS ANGELES (Reuters) - DreamWorks Animation SKG Inc said on Tuesday it was locked in an exclusive deal to distribute DVDs on Toshiba Corp's HD DVD format even though the Japanese electronics maker plans to quit the technology.

"We have a partnership with Toshiba and have an obligation to see this through," DreamWorks Chief Executive Jeffrey Katzenberg said on Tuesday.

"As you know, we have been well-compensated for our support. It really is in their court at this point to really declare what the next step will be. We're poised either way to jump into the marketplace when the conditions are right to do so," he said

Toshiba, which began selling HD DVD players in March 2006, has sold 1 million players and recorders. But this month it declared it would quit the technology after a bitter battle against Sony Corp's rival Blu-ray, which won more studio and retail support.

In August, Viacom Inc's Paramount Pictures and DreamWorks signed exclusivity deals to distribute next-generation films on HD DVD for the next 18 months.

Shortly afterwards, the New York Times reported Viacom executives with knowledge of the deals said Paramount and DreamWorks would get a combined $150 million in financial incentives for their commitment to HD DVD.

DreamWorks plans to release the DVD version of "Bee Movie" next month and is waiting to hear back from Toshiba on how to proceed.

"We said, we have a release coming up on 'Bee Movie.' What would you like us to do?," Katzenberg told Reuters in an interview.

JP Morgan analyst Barton Crockett said the Blu-ray market was still small although he expected DreamWorks would like to have the issue settled by the 2008 holiday season.

"It might mean they'll lose the opportunity to sell 'Bee Movie' on Blu-ray, although the market for Blu-ray is still pretty small and the offset is that they'd get money from Toshiba, which may in fact be more," Crockett said. "But I'm sure they'll like to have this settled by Christmas."

Other HD DVD-backing studios like General Electric Co's Universal Pictures said this month they will switch to Blu-ray after Toshiba officially pulled the plug on HD DVD.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Microsoft

Microsoft CEO Satya Nadella speaks during his keynote address at the company's "build" conference in San Francisco, California April 2, 2014. REUTERS/Robert Galbraith/Files

New Microsoft CEO Nadella impresses Wall Street, stresses challenges

Microsoft Corp's new chief executive on Thursday won rave reviews for his first public encounter with Wall Street analysts who said he communicated willingness to transform the world's largest software company as it scrambles to catch up in the mobile-computing era.  Full Article 

REUTERS SHOWCASE

Lawsuit Settlement

Lawsuit Settlement

Apple, Google agree to pay over $300 million to settle conspiracy lawsuit   Full Article 

FB Newswire

FB Newswire

Facebook courts journalists with newswire tool.  Full Article 

Trend-Setter

Trend-Setter

Trend-setter Apple's stock split could bring out the copycats.  Full Article 

Bidding Adieu

Bidding Adieu

Google social networking boss Gundotra leaving company.  Full Article 

Amazon Results

Amazon Results

Amazon's revenue increases even as spending rises.  Full Article 

Internet Conference

Internet Conference

Internet industry seen as winner at global conference in Brazil.  Full Article 

Baidu Performance

Baidu Performance

Baidu forecasts stronger-than-expected second-quarter revenue.  Full Article 

Hacking Threat

Hacking Threat

All at sea: global shipping fleet exposed to hacking threat.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage