The Financial Times is reporting that Paramount/Dreamworks has a contract clause allowing them to back out of their HD DVD exclusivity deal. An apparent move brought upon by Warner's announcement to release only on Blu-ray starting June 1 of this year. Should this decision be made it would surely hasten the demise of HD DVD as a viable media format as a whole.
On August 20, 2007, Paramount Pictures, DreamWorks Pictures and DreamWorks Animation, announced they would no longer be supporting the Blu-ray Disc format. Citing HD DVD's lower consumer equipment and disc replication costs (due to its similarities to the standard DVD format), all future Paramount/Dreamworks titles will be released exclusively on HD DVD.
Update: Paramount is denying the reports of a switch. Although this doesn't go against the rumor of whether or not they have a clause in their contract to switch back to supporting Blu-ray.
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