Green Ogre Disses Blu-ray

How's this for a bad bet? Viacom's (NYSE: VIA  ) Paramount and DreamWorks Animation (NYSE: DWA  ) will only be supporting HD-DVD in the battle between the two platforms seeking to eventually supplant the DVD as the flick-disc format of choice.

Both HD-DVD and Blu-ray have been slow to come around. HD-DVD offers slightly cheaper players and media, but Blu-ray packs the better storage capacity.

Committing to one wafer-thin niche -- in what is already a small two-niche market -- doesn't make a whole lot of sense. The exclusivity push comes just after Sony (NYSE: SNE  ) lowered prices on its Blu-ray-powered PS3 video game consoles. Microsoft's (Nasdaq: MSFT  ) Xbox 360 does offer an HD-DVD drive, but it's only a sparingly added accessory.

Taking sides will also slow down the already lethargic adoption rate. Few people will shell out hundreds of dollars to upgrade to a Blu-ray or HD-DVD player when the studios aren't completely behind a format, in the way they've all rallied behind the original DVD. Nobody wants to make a bad bet on the latest version of VHS vs. Betamax.

The prospects of not having Shrek the Third or Blades of Glory on Blu-ray doesn't mean that the higher-end platform is toast. Heck, did you see either flick? It may even be a Blu-ray selling point. Still, in all seriousness, this is just a bad move all the way around.

The move also comes at a time when Blockbuster (NYSE: BBI  ) has decided to ramp up its Blu-ray rentals at the expense of HD-DVD.

I understand why Sony hits like Spider-Man 3 are not going HD-DVD. Sony has a huge wager on Blu-ray hardware. What I don't get is why Viacom and DreamWorks Animation would throw their weight -- exclusively -- behind the laggard.

Related Foolishness:

DreamWorks Animation is a Motley Fool Stock Advisor newsletter recommendation. Microsoft has made the cut for Inside Value readers. Free trials are available for both newsletter services. We won't make you pick sides. Try both!

Longtime Fool contributor Rick Munarriz is a sucker for quality animation. Yes, he owns shares of DreamWorks Animation. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 534307, ~/Articles/ArticleHandler.aspx, 10/25/2016 3:36:49 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,171.70 -51.33 -0.28%
S&P 500 2,143.51 -7.82 -0.36%
NASD 5,280.54 -29.29 -0.55%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/22/2016 4:00 PM
DWA $40.97 Down +0.00 +0.00%
DreamWorks Animati… CAPS Rating: ***
BLOKA.DL $0.19 Up +0.01 +0.00%
Blockbuster, Inc. CAPS Rating: *
MSFT $60.96 Down -0.04 -0.07%
Microsoft CAPS Rating: ****
SNE $31.84 Down -0.30 -0.93%
Sony CAPS Rating: ***
VIA $41.85 Down -0.05 -0.12%
Viacom CAPS Rating: ***