Paramount to Back HD DVD Exclusively

Washington, D.C. (August 20, 2007) -- Paramount announced today that it's dropping Blu-ray to back HD DVD exclusively in the high-def disc format war.

In addition, DreamWorks Animation, which has yet to release a movie in either format, said it will back HD DVD exclusively as well.

The news is a major boost for HD DVD supporters who have seen their format fall behind Blu-ray in title sales in recent months. However, it's a setback for studio officials and retailers who have been pushing for a single format.

Paramount now joins Universal as major studios that will only release titles in the HD DVD disc format. Paramount's decision will also include movies distributed by DreamWorks Pictures (except for Steven Spielberg films, which are not exclusive to one format), Nickelodeon Movies and MTV Films.

(Paramount also distributes films form DreamWorks Animation, although it does not own that part of DreamWorks.)

Four major studios -- Sony, Fox, Disney and MGM -- are backing Blu-ray exclusively. Warner Bros. will now be the sole major studio that will release movies in both formats.

Today's announcement means that DreamWorks Animation will release Shrek the Third on HD DVD only in the fourth quarter. Paramount's first HD DVD only release will be Will Ferrell's skating spoof Blades of Glory on August 28.

"The combination of Paramount and DreamWorks Animation brings a critical mass of current box office hits to consumers with a line-up of live action and animated films that are perfect for HD DVD," Brad Grey, chairman and CEO of Paramount, said in a statement. "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."

"We decided to release Shrek the Third and other DreamWorks Animation titles exclusively on HD DVD because we believe it is the best format to bring high quality home entertainment to a key segment of our audience -- families," stated DreamWorks Animation CEO Jeffrey Katzenberg. "We believe the combination of this year's low-priced HD DVD players and the commitment to release a significant number of hit titles in the fall makes HD DVD the best way to view movies at home."

With more new releases now split between the two formats, it's unclear how it will affect consumer acceptance of high-def discs. Sales have been disappointing to date due to consumer confusion over the format war.

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