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How Sony Tried To Kill Toshiba's HD DVD

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Old 07-29-2008, 09:41 PM   #1  
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Default How Sony Tried To Kill Toshiba's HD DVD

So the truth finally comes out. Sony = Evil
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How Sony Tried To Kill Toshiba's HD DVD
Hilary Lewis | Jul 25, 2008 3:53 AM
When Sony's Blu-Ray DVD format overtook Toshiba's HD DVD last winter, it seemed like an act of God: Warner Bros. chose Blu-Ray, Wal-Mart stopped carrying HD DVD, and Toshiba was toast.

But Sony, panicked by Toshiba's deal with Paramount, was prepared for a long fight. Forbes details the behind-the-scenes dealmaking and scheming Sony engaged in to try to kill the HD DVD.

Forbes: Paramount announced last August that it was choosing the Toshiba technology over Blu-ray...[and] Toshiba began selling HD-DVD players for $99, hoping to outsell Blu-ray players and lock in its advantage. The news triggered "sheer and utter panic" at Sony, says its U.S. chief financial officer, Robert S. Wiesenthal...

In Tokyo the night the Paramount news broke, Stringer set up a global conference call to brainstorm ideas for stopping Toshiba. He called on every division to play a part, seizing on the crisis to force the company to work together...

One suggestion was quickly implemented. Sony had wanted gamers to use PlayStation as a videodisc player more often. So if they found a Hollywood movie in the box when they bought the machine, they'd likely test-drive the film, not just play the car-racing games. "Howard rang me up and told me, 'I really need you to pack half a million units of Spider-Man with PlayStation 3,'" says Michael Lynton, chief executive of Sony Pictures Entertainment...

For the studios and retailers, Sony's big argument was that even though Blu-ray and HD-DVD were neck and neck in player sales, Blu-ray was really ahead by 1.8 million. That's if you count the videogame fans who own PlayStation 3 players, because they play Blu-ray discs. So Sony executives went to work persuading Hollywood studios that Blu-ray wasn't the next Betamax. It fell to Wiesenthal, Stringer's U.S. finance man, to lobby one studio, Lionsgate, to make sure it didn't agree to payments from Toshiba (which doesn't own a studio). "The relationship between Sony and Lionsgate was going to continue a lot longer than the relationship between Toshiba and Lionsgate," he argued, making cell phone calls from a boat while on vacation off Long Island, N.Y. "Toshiba was not going to cofinance one of their movies.


Peter Dille, a marketing official at Sony's U.S. games unit, suggested wooing rival Hollywood studios--Lynton's competitors--by including snippets of their movies in PlayStation 3 ads. The free advertising would get the industry's attention. Message to Hollywood: "This does more than play games," Dille says.

With Toshiba cutting its price, Sony needed to sell more players. Its headstrong gaming division agreed to cut PlayStation 3's price by $100, then began selling an even cheaper version with half the memory, even though it would crimp the division's profits. Sony executives from Los Angeles, San Diego, New York and Tokyo converged on Best Buy headquarters in Minneapolis to spend a half-day in meetings. Sony offered to help pay for Best Buy ads in Sunday newspapers nationwide, to pay for Blu-ray store displays and to offer discounted Blu-ray packages--a Bravia TV sold with a Blu-ray player and five free discs, for instance. Sony execs also made pilgrimages to Wal-Mart, Target (nyse: TGT - news - people ), Circuit City (nyse: CC - news - people ) and other chains.

Despite rumors to the contrary, Sony executives say they did not pay movie studios to side with Blu-ray in the format war. But Sony did spend more than $60 million advertising PlayStation 3 from November to January in the U.S., according to tns Media Intelligence, bringing free attention to Hollywood movies and retailers alike.


And now that Sony has finally discovered the benefits of synergy, the multi-division unity will continue:

Sony's Bravia flat-screen TVs will allow viewers to connect to the Internet and stream Hollywood hits without a set-top box or cable subscription; already the TVs can do this with YouTube and other free Internet channels. Sony will send the new Will Smith movie, Hancock, to Internet-ready Bravia TV sets in November, before it can be seen on DVD or on cable. In Stringer's vision of the future, consumers will pay Sony first for televisions and other hardware, then pay Sony again to download movies, music and TV shows. "The battle for me is the networking of these devices," he says. "I have to succeed at that."

Let's hope the also-ran Hancock is enough to push people to buy Sony's flat screens.
http://www.businesssheet.com/2008/7/...shiba-s-hd-dvd
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Old 07-29-2008, 09:43 PM   #2  
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So what time zone did you say you live in, Super?
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Old 07-29-2008, 09:47 PM   #3  
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So the truth finally comes out. Sony = Evil
Sounds like typical board room competition strategies in big business. Also, this has been posted a few weeks ago.
But thanks for confirming that Sony DIDN't buy any studios Guess that was a Tosh exclusive (and again - just business )
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Old 07-29-2008, 09:50 PM   #4  
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Sounds like Sony had a great marketing team!

No payoffs there!
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Old 07-29-2008, 10:06 PM   #5  
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Originally Posted by bruceames View Post
So what time zone did you say you live in, Super?
GMT-05:00) Eastern Time (US & Canada)
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Originally Posted by Bravestime View Post
Sounds like Sony had a great marketing team!

No payoffs there!
I admit Sony was much more aggressive in marketing even though a lot of it was false advertising (If you want to watch 7 out of 10 movies in Hi Def, Blu-Ray is the only one to do so) was completel BS.

Obviously Sony Pay-offs are not going to be talked about in articles such as this one. It's Sony's little BIG secret
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Old 07-29-2008, 10:09 PM   #6  
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It was Sony's JOB to try and kill HD DVD, and it was Toshiba's JOB to try to kill BD. They both did what they were supposed to do.

By the way, I already posted this link here:

http://www.highdefforum.com/showthread.php?t=76108

Inside a complimentary thread that already existed.

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Old 07-29-2008, 10:10 PM   #7  
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Quote:
Originally Posted by PFC5 View Post
It was Sony's JOB to try and kill HD DVD, and it was Toshiba's JOB to try to kill BD. They both did what they were supposed to do.

By the way, I already posted this link here:

http://www.highdefforum.com/showthread.php?t=76108

Inside a complimentary thread that already existed.
Woops, didn't see it. Sorry.
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Old 07-29-2008, 11:27 PM   #8  
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God, is this what passes for reporting? If Hilary Lewis thinks Hancock (http://www.boxofficemojo.com/movies/?id=hancock.htm) is an also ran, I'd hate to see what she thinks is a failure.

Shouldn't this thread title be "How Sony KILLED Toshibas HDDVD?" Tried conotates that it didn't work.

Last edited by vikingfan; 07-29-2008 at 11:53 PM..
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Old 07-29-2008, 11:59 PM   #9  
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Anything Will Smith sells period. Americans love him.
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Old 07-30-2008, 12:12 AM   #10  
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Anything Will Smith sells period. Americans love him.
Well there is this,

http://www.boxofficemojo.com/movies/...aggervance.htm

Wonder how many people knew that Hancock was a "reteaming" for Will and C. Theron
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Old 07-30-2008, 12:22 AM   #11  
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Originally Posted by vikingfan View Post
Well there is this,

http://www.boxofficemojo.com/movies/...aggervance.htm

Wonder how many people knew that Hancock was a "reteaming" for Will and C. Theron
He's had a few downs, but hes had one of the most successful track records in all of Hollywood for box office hits right next to Harrison Ford and Tom Cruise.

Now Will Smith was suppose to star in the Matrix Trilogy but he declined it in favour for another film which eventually tanked. He had no regrets, He said Keene Reeves did a great job.
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Old 07-30-2008, 03:37 AM   #12  
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So Sony put a Blu-ray movie in the PS3 box rather than pay Warner $500 million? Smart move, or does SuperXP still believe that Warner and Sony executives continue to lie, the big payoff was real?

Chris
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Old 07-30-2008, 06:13 AM   #13  
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Originally Posted by Chris Gerhard View Post
So Sony put a Blu-ray movie in the PS3 box rather than pay Warner $500 million? Smart move, or does SuperXP still believe that Warner and Sony executives continue to lie, the big payoff was real?

Chris
I got an email from someone very high up in the white house, he has reliable info that claims in Hideo Kojima's Metal Gear Solid games he based the Patriots (the mysterious organisation who secretly run the world) on Sony and now he is in hiding in fear of his life
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Old 07-30-2008, 06:50 AM   #14  
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Originally Posted by venomxr8 View Post
I got an email from someone very high up in the white house, he has reliable info that claims in Hideo Kojima's Metal Gear Solid games he based the Patriots (the mysterious organisation who secretly run the world) on Sony and now he is in hiding in fear of his life
Oh WOW, so you got that email too!
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Old 07-30-2008, 06:54 AM   #15  
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Sony collaborated with several industry sectors to buy their way to success. The article stats this quite clearly. Just read between the lines.
Toshiba was completely fooled. But Toshiba is also to blame for complete lack of aggression and interest.
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