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NY Times Confirms $150M Pay-off to Paramount,exclusive deal to last 18 months

The NY Times has confirmed via two Viacom executives, who spoke on the condition of anonymity, that Paramount has received a $150M pay-off to support HD DVD exclusively for a period of 18 months. The $150M is comprised of cash and future marketing deals. Also re-confirmed is that the deal includes no films directed by Steven Spielberg.

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Loudninja3533d ago

LOL, such a shame they had to payed someone off to get support.

Marona3533d ago

But... $150 Million? Is this for real? Even their films make more than 150 million. If I was the head of Paramount I'd demand it over a billion if they want an exclusive deal.

Bleyd3533d ago (Edited 3533d ago )

that they're only selling at most 100,000 to 250,000 of any new blockbuster title and maybe a few thousand of their catalogue titles total. At an average price of $20 to $25 that only gets you about $5,000,000 to $5,125,000 per blockbuster title. Let's say they release 10 blockbuster titles in a single year then that would only make them approximately $50,000,000 and that's not including the cost it takes to make the disks and then advertise for them. So the $150,000,000 pay off for exclusivity in the HD market is pretty good for only a year and a half. From a strict money standpoint it's a good business decision for the short term. Think of it as renting out an entire restaurant for an entire day to a group of 20 people to celebrate all day for a birthday. There's no way that they'd do that for less than what they could possibly make during that time and would actually probably rent it out for more than they could make during that time. It sure sucks for the rest of us who would like to eat at that restaurant on that day but there's still a chance for you to eat there after the deal is done.

nix3533d ago

...i believed when you said, "Blu-Ray is not our competitor". q:

aaquib23533d ago

Almost as desperate as Microsoft paying $50M for GTA4 downloadable content.

Delive3533d ago

getting Transformers on Blu-Ray for my B-day in early 2009.

shysun3533d ago

NOOOOOOOOOOOOOOO...oh wait thats a Steven film.YAY!!!

Delive3533d ago

He is an executive producer. I don't know if this counts. The way it sounds for now, no Blu-Ray Transformers for a while. Their loss, I'll have to settle for FF:Rise of the Silver Surfer.

solidt123533d ago

Oh well I will just buy Transformers on DVD and upscale on my PS3. No big deal. Better yet rent it and do what i please with it then send it back. Ha ha ha ha

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