Paramount Pictures and Dreamworks Animation SKG Inc. have announced their plans to release next generation DVD's in the HD DVD format, and drop support of the Blu-Ray format.
Mondays announcement will effect the upcoming DVD releases of blockbusters "Transformers" and "Shrek the Third". We can also expect this format change to effect releases of movies distributed by Paramount Pictures, Dreamworks, Paramount Vantage, Nickelodeon Movies and MTV Films.
Paramount, which owns DreamWorks Pictures and handles home sales for the separate company DreamWorks Animation, previously released movies in both Blu-ray and HD DVD. Movies directed by Steven Spielberg, however, will continue to be released in both formats.
Brad Grey, chairman and CEO of Paramount Pictures, a unit of Viacom Inc. announced that "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."
Jeffrey Katzenberg, CEO of DreamWorks Animation, said consumers seeking to switch to high-definition DVDs will be enticed by the movies available for HD-DVD players. He added the lower price for the Toshiba devices will appeal to the family market.
"It's a game-changer, what they're doing, and it's why we decided to throw in with them," Katzenberg said.
Standalone HD DVD players have a bigger slice of the market than Blu-ray players. But when you count Sony's PlayStation 3 game console, which comes with a Blu-ray drive, there are more Blu-ray players in U.S. homes.
Rob Moore, president of Paramount Worldwide Distribution, said market data shows that people who own gaming consoles buy fewer movies than those who invest in a movie-only player.
But is the format war really over? Lines are being drawn, and sides are being chosen. With Paramount dropping Blu-ray support, Time Warner Inc.'s Warner Bros. remains the only major studio releasing movies in both formats.
The Blu-ray format recently got a big boost as Blockbuster Inc. announced it would stock only Blu-ray titles when it expands its high-def DVD offerings this year. Target Inc., the nation's second-largest retailer, said it will only sell Blu-ray DVD players in its stores in the fourth quarter. Sony Corp.'s Sony Pictures, News Corp.'s Twentieth Century Fox, The Walt Disney Co., and Metro-Goldwyn-Mayer are releasing only in Blu-ray.
Universal, owned by General Electric Co., backs HD DVD exclusively.
And the battle rages on.......
