Jan 10, 2008 12:25 PM EST
US Economy Drives Warner Brothers to Blu-ray
Warner Brother has decided that they will be backing Sony's Blu-ray next generation format exclusively, according to a top executive at the company. The reason? Poor DVD sales and United States economic downturn.
"We've typically been recession proof. But the thing that we saw in the fourth quarter...was gas prices beginning to affect sales. And since we're considered an impulse purchase, it's beginning to impact us," says Warner Bros Entertainment Group President Kevin Tsujihara in an interview at the annual Consumer Electronics Show in Las Vegas.
Warner Brothers is the industry's largest biggest seller of home movies, and partnering up with Sony is a big blow to Toshiba, who is the developer of the HD DVD format. Toshiba says that things aren't over for them, but it is clear that this is a big set back for the company.
Five of the seven big studios in Hollywood are backing Blu-Ray and while they are expected to spend more than $50 million to get people to upgrade, budget reports aren't finalized yet according to Warner Brothers.
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