Paramount, DWA Pick Side in Next-Gen Format War

There are those who believe that price point for hardware, not studio affiliation, will ultimately make the difference in the next-generation format war between Toshiba's (and Mircosoft-backed) HD DVD and Sony's Blu-Ray. But its hard to argue that the format that offers the best selection of movies won't have a serious advantage. Blu-Ray discs (supported by most major Hollywood studios) have been outselling HD-DVD two to one in the first half of 2007, but here's the latest salvo: Paramount and DreamWorks Animation have agreed to release their DVDs exclusively on HD DVD. From Reuters:

Paramount, which distributes DreamWorks Animation's DVDs, settled on HD DVD after determining that the format offers better quality and lower-cost players and lower manufacturing costs, the studios said in a statement.

Two competing technologies -- HD DVD and Blu-Ray -- are waging a battle to dominate the next generation of DVD players that promise crisper video, audio and in some cases more content in the multibillion-dollar home entertainment arena.

Paramount's first releases under the exclusive HD DVD program include "Blades of Glory" on August 28 and the summer blockbusters "Transformers" and "Shrek the Third," due for release later this fall.

The exclusive agreement does not include movies directed by Steven Spielberg for DreamWorks SKG, which is a Paramount unit. His films are not exclusive to either format, Paramount said.

DeadlineHollywoodDaily is reporting that the decision all comes down to--you guessed it--money, with Paramount pocketing $50 million to sign with HD DVD and DreamWorks Animation taking in $100 million. Time will tell if their support will be enough to help HD DVD, which has sold more stand-alone players than Blu-Ray (not counting PS3s), reclaim lost territory and be seen as something more than a flagging technology. Universal used to the be only studio exclusive with HD DVD (it's also supported by Warner Bros, New Line, HBO and Weinstein Co). Paramount/DW movies have done incredibly well at the box office this summer, and could help shift the balance as we approach the holiday season. I'd say the fight is far from over.