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Paramount/DreamWorks To Go Blu-Ray

"Paramount is poised to drop its support of HD DVD after Warner Brothers' recent backing of Sony's Blu-ray technology, in a move that will sound the death knell of HD DVD and bring the home entertainment format war to a definitive end.

Paramount and DreamWorks Animation, which makes the Shrek films, came out in support of HD DVD last summer, joining General Electric's Universal Studios as the main backers of the Toshiba format.

However, Paramount, which is owned by Viacom, is understood to have a clause in its contract with the HD DVD camp that would allow it to switch sides in the event of Warner Bros backing Blu-ray, according to people familiar with the situation.

Paramount is set to have a bumper 2008 with several likely blockbusters, including the latest instalment in the Indiana Jones franchise.

Paramount joining the Blu-ray camp would leave HD DVD likely to suffer the same fate as Sony's now obsolete Betamax video technology, which lost out to VHS in a similar format war in the 1980s.

Warners decision last week to throw its weight behind Blu-ray saw it join Walt Disney, 20th Century Fox and Metro-Goldwyn-Mayer as backers of the Sony format.

The Warners move gives Blu-ray about 70 per cent of Hollywood's output, although the format's grip on film content will increase further when Paramount comes aboard.

It is unclear whether DreamWorks Animation has the same get-out clause in its contract with the HD DVD camp.

However, Paramount and DreamWorks have a close relationship, with Paramount distributing DreamWorks Animation films. The two companies also signed their HD DVD contracts at the same time. Meanwhile, Universal has declined to comment on its next-generation DVD plans since the Warners move.

Sir Howard Stringer, chief executive of Sony, on Monday held out an olive branch, saying the company would be "open to dialogue" with the HD DVD camp to "grow the market". The move came as new figures showed that Blu-ray had opened up a decisive lead over the rival home entertainment format.

Sir Howard said: "We are not going to push people around. We'll talk to anyone ... we have a lot of work to do to grow the market. We'll be systematic and open to dialogue at all times."

He added that Sony still had "a lot of work" to do to get Blu-ray "widely accepted" among American consumers.

"With Warner's support you saw billboards going up in different places and you saw television commercials getting more and more sophisticated and that's what we'll continue doing," said Sir Howard."

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Myth3397d ago

Do it Paramount do it.

sonarus3397d ago

well if paramount leaves then it will be far to clear that hd-dvd has collapsed universal would have to leave too or they would jst look stupid

neogeo3397d ago

Here is the simple proof.
Where is Jerrisic Park?????
They have been holding out for bluray.

HDDVD FTW!!!

mikeslemonade3397d ago

Is Paramount thinking about going multiformat or blu-ray exclusive?

ITR3397d ago

Just because your the last man standing doesn't mean Uni will go BD.
WHY may you ask? Money.
Uni will more then likely hold out for money. Paramount may do they same.
Get paid twice for Paramount.

travelguy2k3397d ago

then they will have to go blue ray.

They are going to have a tough time trying to make money selling HD DVDS in the future so if they want to get in the Hi Def disk market, they MUST go Blue Ray.

Sony could probably charge Universal for the opportunity to go Blue, but they won't, in the interest of making the most money and having the formate adopted as early as possible they will let anyone wanting to promote blue ray do so with minimal interference.

PhiI Harrison3396d ago

Why wouldn't they? They would be too stupid to not support Blu-Ray, the REAL next generation format.

+ Show (3) more repliesLast reply 3396d ago
Farsendor13397d ago

this may happen i just want this thing to be over with. you know theres still people out there that have no ideal what blu ray is lol.

androctonvs3397d ago

do they really know what HD DVD is, too?

i mean... it's too soon in the game for the majority of people know what next generation video discs are.

i always thought the name HD DVD was so unfresh... unsexy... and lame. plus, i think it would make people even more confused...

Lord Anubis3397d ago

I thought they would remain with HD-DVD.

BLaZiN PRopHeT3397d ago (Edited 3397d ago )

they already said they are staying with HD DVD. the story was posted on this site already

http://www.n4g.com/tech/New...

@joevfx they never signed a contract with HD DVD

Cyrus3653397d ago

True, but Financial Times is pretty legit site, it's not some blog, and if they are reporting that Paramount is going to use their opt out clause, it does have same weight as well.

Not saying what paramount said in that article you posted is wrong either.

joevfx3397d ago

yeah and how many times did Warner brothers say they were staying nuetral?

I knew paramount wasnt that stupid to sign over to HD DVD for a year and a half with no way out. they will prolly just have to pay money to the HD DVD camp to get out. maybe the 150mil they got to go over.

ITR3397d ago

Joe if that's the case then HD could woo WB back too...because I'm sure they have a similar clause in their BD contract.
We stay until someone gives us more money.

akaFullMetal3397d ago

if paramont does this, well things will then be even bleaker for hd-dvd, with no chance of surviving

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