Paramount Drops HD-DVD
UPDATE:Paramount spokeswoman Brenda Ciccone made this statement in response to reports that Paramount is abandoning the HD-DVD format: “Paramount’s current plan is to continue to support the HD-DVD format.” The statement didn’t specify if Paramount would also produce Blu-ray DVDs in addition to HD-DVDs. It will be interesting to see how this story pans out.
I just gave the bad new to one of the guys in the Toshiba booth at CES. He wasn’t happy. Their HD-DVD focused booth looks a little silly now.
According to the Financial Times, Paramount is going to drop their support for Toshiba’s HD-DVD after Warner Brothers pulled out of the HD-DVD camp last Sunday night. This will most likely put the final nail in the coffin of the HD-DVD format and end the biggest home entertainment format war since Betamax vs. VHS.
Why the sudden switch? Why did Paramount go over to Sony’s Blu-ray so quickly? Insiders are saying that a clause in Paramount’s contract allowed the company to drop HD-DVD in the event that Warner Bros decided to back Blu-ray.
USPS Hates Netflix Envelopes
According to an article in the NY Times, the USPS isn’t happy with Netflix because their red envelopes must be sorted by hand. The US Postal Service estimates that the manual sorting of 1.6 million Netflix envelopes per day is costing them about $21 million a year.
As a result, the USPS wants to add a 17 cent surcharge to every package that requires hand sorting - including Netflix DVD envelopes. Tony Wible, a Citigroup analyst who wrote the report, says that the income that Netflix receives per subscriber would fall from $1.05 to 35 cents and that Blockbuster’s return mailing envelopes do not cause this problem. This could make a big competitive difference for the 2 companies.
“We know that Netxflix, which mails out about 1.6 million movies a day, is clever enough to create a redesigned mailer sometime soon.” ~ GearLive.com
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Rembrants Sing Thundercats Theme
Remember a band called The Rembrants? If not, don’t feel bad. The Rembrants were pretty much just a one hit wonder from the 1990’s. Their only hit song was “I’ll Be There For You” (aka the Friends TV show theme song).
Well, if you happen to be a fan of the classic cartoon Thundercats (1985), you might suffer a slight Rembrants flashback. Part of the DVD extras for Thundercats - Season Two, Vol. 1 is music video of the Thundercats theme song sung by The Rembrants. In case you are curious, here’s a behind the scenes promotional video of the music video I found on Vmix.
Where’s Mumm-Ra when you need him?
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Blockbuster Online Denies Problems
According to bloggers and a flood of angry comments on the Internet, operations at American DVD rental service, Blockbuster Online, have come to a screeching halt. Angry customers are reporting that they have not received movies from their queues for weeks. According to one customer, repeated calls to Blockbuster customer service were fruitless and when he finally did get through, a customer service rep told him that their mail rental system was shut down.
However an official spokesperson for Blockbuster denied the existance of any problems when contacted by Ars Technica.com. “We’ve been continually shipping product. If a customer feels like they are not getting a movie, they should follow up with our customer service. But in terms of product being allocated and shipped, there has been no interruption.”
Despite what the spokesperson says, sites like DVDRR.com have been flooded with negative comments like this one from a Blockbuster Online user named Cat: “No dvds have been shipped for over a week despite 3 open slots and 26 available titles in my queue. Emails and phone calls to customer support have not succeeded in getting this resolved, just promises that are not kept. I will be canceling and switching to Netflix.”
Is it just a random coincidence that Blockbuster Online users didn’t receive any DVDs last month? Or is Blockbuster being less than truthful about possible problems with their rental service? Blockbuster is engaged a tough battle against Netflix, the market leader in online rentals. Admitting to significant service interruptions might persuade users to switch to Netflix.
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