Woa, take a breath there Smitty and let your fingers catch up
John, do you naively think these channels just come up for bid on the auction block without any negotiations? How do you know there's no pressure to limit PQ to something "less" than HD DVD quality?
I have a relative who was in the motion picture industry for years, both as a director and producer. He told me 20 years ago that Most of the advance production money comes from the sale of first run video rights. This aspect of marketing is crucial to most productions.
Now how much do you think home video rights would be worth if satellite and cable were able to provide the same quality as what's available on dvd? Even better quality if you're comparing to a non-HD dvd player, which is how this started out.
To that you add the ability for unlimited archives - all at a cost of a few dollars a movie and before you know it, dvd sales drop by 50% as more people wait the few weeks beyond the dvd release date for it to hit PPV.
We're talking multi billions of dollars here that they are not about to give up. I'm betting one of 3 things is going to happen here:
Sat / cable will not be allowed to present the same quality as dvd; or if so, we'll see the time span between dvd release and PPV / VOD increase drastically and premium movie channels even further; or we'll see some type of broadcast flag forced on everything that comes out of hollywood - and it will probably include DVRs.