Warner's announcement came as little surprise, since Time Warner holds some of the patents and copyrights behind the HD DVD format, along with Toshiba and others. In addition, the format was championed by former Warner Home Video president Warren Lieberfarb, now a consultant to Toshiba.
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It's widely believed that Par and U were seeking cash and other incentives from both groups and that at least one of the uncommitted studios is still holding out for a more lucrative incentive. Insiders suggested that more than one studio was offered as much as $30 million, but the three studios involved in the announcements Monday say they did not receive any cash incentives.
One studio exec suggested that his studio did, however, receive a break on royalty fees. And according to one player close to the negotiations, Par and U almost certainly won either financial consideration or a change in the technology to their liking in order to make an early commitment.
Leveraging both sides
Many believe Fox and Disney are hoping to use the leverage of an undecided position to push both technologies to adopt features they prefer. Fox is currently working with the organizations developing both formats.
"Fox and Disney don't want to endorse a format until they have used up all of their political capital to influence it coming out the way they want," observed Paul Kocher, prexy of content protection company Cryptography Research.