Paramount and Dreamworks went HD DVD exclusive today. Then, a Hollywood news blog reported that the HD DVD camp paid Paramount $50 million and DreamWorks Animation $100 million for "promotional consideration." We asked Paramount and the HD DVD camp about this, and received a quick albeit vague reply: "Whenever we conduct co-marketing, production deals or other agreements, we never discuss business terms."
I take that as a confirmation of sorts—certainly it isn't a denial—but is it bad, or even out of the ordinary? Let's get some context. First, here's a fuller version of what transpired today:
When reporting the Paramount/DreamWorks Animation announcement, Nikki Finke at Deadline Hollywood Daily wrote this:
Note how there's no mention of the money Paramount (I'm told $50 million) and DreamWorks Animation (I'm told $100 million) is receiving for "promotional consideration" from the HD DVD side to continue with what is widely recognized as the losing high-def format.
The reason we made this decision is simple. After a year of fully experiencing and exploring both formats, we decided to exclusively support HD DVD because of the quality, value and potential the format offers. Beyond that, whenever we conduct co-marketing, production deals or other agreements, we never discuss business terms.
The essence of Finke's story, that this move will be profitable for Paramount and DreamWorks in the short term, can be trusted, however, as can be the general assumption that the Blu-ray camp is making it worthwhile to support its format, too. That's just business, right? [Deadline Hollywood Daily]