Monday, October 29, 2007

Toshiba Paid Paramount for HD DVD Support, But How Much?

Paramount Was Paid for HD DVD Support, Toshiba Executive Says

BERLIN -- Toshiba promised Paramount and DreamWorksAnimation "some money" to cover costs "to jointly promote" their titles, in a deal for the studios to support HD DVD and not Blu-ray, Toshiba's top HD DVD executive told Consumer Electronics Daily at IFA Friday. But reports that Toshiba paid the studios $150 million for their support are "totally wrong," Yoshihide Fujii, CEO of Toshiba's Digital Network Co., said without elaborating.

A studio would be "stupid" to accept money to back "the wrong product," Fujii said. "Sooner or later," Paramount and DreamWorks Animation would realize HD DVD "is the wrong product," if that was so, and if the endorsements were based only on payments, he said. "Only because they feel this is the right product" did Paramount and DreamWorks Animation agree to back HD DVD exclusively, Fujii said. "This is a fact," he declared.