Viacom Bribed to Support HD-DVD
August 22, 2007 by Jayvee Fernandez
Filed under Computers
The format war between HD-DVD and Blu-ray just keeps getting dirtier and dirtier. Earlier this month, Sony was caught in bed with Japanese porn stars to back Blu-Ray. Now Viacom subsidiary Paramount has been caught taking bribes to support HD-DVD.
Paramount and DreamWorks Animation together will receive about $150 million in financial incentives for their commitment to HD DVD, according to two Viacom executives with knowledge of the deal but who asked not to be identified.
The incentives will come in a combination of cash and promotional guarantees. Toshiba, for instance, will use the release of “Shrek the Third” as part of an HD DVD marketing campaign.
Paramount and DreamWorks Animation declined to comment. Microsoft, the most prominent technology company supporting HD DVDs, said it could not rule out payment but said it wrote no checks. “We provided no financial incentives to Paramount or DreamWorks whatsoever,” said Amir Majidimehr, the head of Microsoft’s consumer media technology group.
The surprise move by Paramount and DreamWorks Animation prompted an immediate response from the electronics companies betting on Blu-ray.
“This seems like a move of desperation,” said Andy Parsons, a member of the Blu-ray Disc Association, which represents companies like Panasonic, Samsung and Sony.
Sex, lies, and optical discs — this war would be dramatic if it weren’t so idiotic.
