Warner Bros. switched to Sony’s Blu-ray technology last week, and now Paramount is planning to drop its support of HD DVD technology as well. If they do, it will be almost over for Toshiba's HD DVD format.
Paramount and Dreamworks Animation came together in joint support of HD-DVD last summer, but this winter it seems like they both may be
jumping ship to Sony’s Blu-ray camp. A few days ago Warner, which used to make DVDs for both technologies, decided to
supply only Blu-ray DVDs.
Since then, Paramount seems to be in favor of switching, too. Paramount, owned by Viacom, has a clause in its contract with HD DVD that will allow Paramount to withdraw if Warner backs Blu-ray exclusively.
Paramount is planning to have plenty of blockbuster new releases this year, including the new Indiana Jones movie. If they switch, it will be a serious blow for HD DVD and the
Financial Times says it will be the end of HD DVD technology. It may suffer the same fate as Sony’s
Betamax video technology, when it lost to VHS technology in the 1980s.
Warner has joined Walt Disney, 20th Century Fox and Metro-Goldwyn-Mayer in the Blu-ray group. Together they account 70 per cent of all Hollywood movies and the share will increase further when Paramount and Dreamworks Animation join forces with Blu-ray.
Paramount and Dreamworks Animation have a close relationship and Paramount distributes all of Dreamworks Animation's movies.
Universal has not announced its plans yet, but most likely they will have no other choice but to join the Blu-ray camp with others; otherwise it will lose a bulk of the market.
Sony, however, announced it still wants to work with Toshiba. Sir Howard Stringer, chief executive of Sony, said he wants to talk more with Toshiba and is open to dialog.
Because of improper planning and strategy by the industry, many customers ended up buying HD DVD players and movies only to hear the news that the releases will no longer be available in the future.
