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More companies drop HD DVD

HBO announced yesterday that it will follow its parent company, Warner, in embracing Blu-ray exclusively. Warner has one more subsidiary, BBC Home Video, that has not yet announced its intentions but it is expected to follow suit.

Variety is now reporting that the two remaining studios in the HD DVD camp, Universal and Paramount, could switch sides soon as well.

They say that they can confirm that "Universal's commitment to backing HD DVD exclusively has ended" and that Paramount has an escape clause in its contract that will allow it to release films on Blu-ray after Warner embraced it exclusively. The two companies are not dropping support for the format but it is less attractive for them to remain exclusive to it.

I am certain that HD DVD will not go down without a fight, as Microsoft and Toshiba have invested a considerable amount of money into the format. Toshiba says it will remain faithful to the format but as a consumer, I would not be rushing out to buy an HD DVD player right now. If the remaining HD DVD-supporting studios choose to release their titles on both HD DVD and Blu-ray, the battle is already over. Why would you buy an HD DVD player that can play two studios' titles when you can buy a Blu-ray player that will play every company's discs? It's a no-brainer.

Update: Universal has issued a statement: "Contrary to unsubstantiated rumors from unnamed sources, Universal's current plan is to continue to support the HD DVD format". Note that they did not use the word "exclusively" or say anything about not releasing titles on Blu-ray.
Posted by Jon Chappell on Jan 10 2008 to Analysis, DVD, Industry