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Paramount, DreamWorks Throw Exclusive Support Behind HD DVD
by James Brightman

Blu-ray may have outsold HD DVD 2-to-1 for the first half of the year, but the next-gen movie format war is far from over. Paramount, which is the leading studio in domestic box office, is now exclusively supporting HD DVD. That $179 360 HD DVD Player probably just got even more appealing...

Just when it looked as if the tide may have turned in favor of Blu-ray, HD DVD received a significant boost today in the form of exclusive support from Paramount Pictures and DreamWorks Animation. Going forward, all movies distributed by Paramount Pictures, DreamWorks Pictures, Paramount Vantage, Nickelodeon Movies and MTV Films, as well as movies from DreamWorks Animation, which are distributed exclusively by Paramount Home Entertainment, will be exclusive to the HD DVD format.

The exclusive support starts on August 28 with the comedy Blades of Glory, and that will be followed by blockbusters such as Transformers and Shrek the Third—those three alone represent more than $1.5 billion in box office ticket sales worldwide. The news comes as a blow to Sony's Blu-ray format, which had been gaining steam of late. And it means that PS3 owners who thought they'd be able to snag these movies on Blu-ray will have no such luck.

Paramount Home Entertainment said that today's announcement does not include films directed by Steven Spielberg, however, since his films are not exclusive to either format.

The studio commented that its decision to distribute exclusively in the HD DVD format "resulted from an extensive evaluation of current market offerings, which confirmed the clear benefits of HD DVD, particularly its market-ready technology and lower manufacturing costs."

"The combination of Paramount and DreamWorks Animation brings a critical mass of current box office hits to consumers with a line-up of live action and animated films that are perfect for HD DVD," said Brad Grey, Chairman and CEO of Paramount Pictures. "Part of our vision is to aggressively extend our movies beyond the theater, and deliver the quality and features that appeal to our audience. I believe HD DVD is not only the affordable high quality choice for consumers, but also the smart choice for Paramount."

"We decided to release Shrek the Third and other DreamWorks Animation titles exclusively on HD DVD because we believe it is the best format to bring high quality home entertainment to a key segment of our audience – families," added DreamWorks Animation CEO, Jeffrey Katzenberg. "We believe the combination of this year's low- priced HD DVD players and the commitment to release a significant number of hit titles in the fall makes HD DVD the best way to view movies at home."

Microsoft recently cut the price on its Xbox 360 HD DVD Player to $179. Combined with the price reduction on the console itself, this Paramount news could help fuel HD DVD Player sales for the console along with further sales of HD DVD movies.

Universal Pictures is the only other studio to exclusively support HD DVD, meaning that films such as Peter Jackson's King Kong and The Bourne Ultimatum will not be available on Blu-ray for PS3 owners. By the same token, however, movies from Sony Pictures, such as Spider-Man 3, and movies from Disney's Buena Vista such as all three Pirates of the Caribbean, will only be available on Blu-ray.