Viacom Earnings Report Confirms Paramount Payout from Toshiba
I know for many this is not interesting news since the format war is over and done (if so feel free to skip to the next post), but for some who believed that HD DVD won Paramount exclusivity on the merits of the format and others that seek proof of their belief that Toshiba paid a large sum for exclusive HD DVD support from Paramount, we have some potentially interesting information.
In a report from Variety about earnings for Viacom we read of a one time payment from Toshiba. The article refers to a “22% bump in home entertainment revenue on one-time items including a $29 million payout from Toshiba for Paramounts exclusive backing of the HD-DVD.” The article goes on to say that “Viacom said homevid revenue would have been down slightly if the payout wasnt included due to lower catalog sales.”
It is now 100% clear that Viacom took money from Toshiba to drop Blu-ray Disc.
The question that perhaps remains is whether Warner also accepted a payout to do the opposite. Perhaps financial reports from Warner in the future will reveal that also.