According to reports, Dreamworks is in the unenviable position of being the only major studio still bound to the HD DVD format. Update: they've quit.
Though the contracts signed back in August may have been lucrative, the deathblow dealt HD DVD by Toshiba themselves may now prove painful for Dreamworks.
“As you know, we have been well-compensated for our support,” DreamWorks CEO Jeffrey Katenberg told Reuters. “It really is in [Toshiba's] court at this point to really declare what the next step will be.”
I can only assume that Paramount's move back to Blu-ray was easier.
Some analysts believe that Dreamworks received $150m in combined incentives to switch allegiance to HD DVD last year. With at least six months left to run, they also suggest that Toshiba won't allow Dreamworks to pull out without paying compensation, though that sounds rather unfair given that I'm sure Dreamworks weren't expecting Toshiba to give up so quickly.
So, basically, it's OK for one of the founding companies to strike the final blow to HD DVD, but it's NOT OK for a company still tethered to the mortally wounded format to bow out. I expect Dreamworks' lawyers are poring over the contract's finer points right now.
On a positive note, though, the high definition disc market is still relatively small. Presumably Dreamworks don't have to release a certain number of titles on the HD DVD format (unless there's a clause in the contract to that effect). Perhaps they should stick to standard DVD releases for now, and switch to Blu-ray when and if the consumer market is stronger.
As for Toshiba — shame on you if you shackle a company that you enticed to your format even after you jumped off your own ship.
(Via Digital Trends)
