Rhy Blakely
Paramount Pictures and DreamWorks Animation have dropped support for Sony’s Blu-ray next generation DVD format in a shock move that will see the two studios exclusively use Toshiba’s rival HD-DVD system.
The latest development is a blow for Sony, which has invested heavily in Blu-ray. The battle between Blu-ray and HD-DVD is widely being seen as a re-run of that in the 1970s and 1980s between Sony’s Betamax video format and VHS - a cheaper rival - a fight that Sony lost.
The move is also likely to prolong the confusion among consumers, who cannot be sure of buying a next-generation DVD system that does not become defunct after being beaten by an incompatible rival.
Analysts have consistently suggested that confusion over the formats is likely to seriously stymie demand for both Blu-ray and HD-DVD until a clear winner emerges.
Blu-ray still leads HD-DVD in terms of Hollywood support, having won the exclusive backing of five studios: Sony, Walt Disney, Twentieth Century Fox, Lions Gate Entertainment and MGM.
However, Sony last month took another hit when it emerged that Europe’s competition watchdog had launched a fresh probe into allegations of possible market rigging in the formats war, thought to centre on exclusivity deals linked to the Blu-ray format.
http://business.timesonline.co.uk/to...cle2295565.ece
Sony PR Firm Pushes Paramount HD DVD Payoff
Top public relations agency for Sony's Blu-ray interests tips reporters to blog item after Paramount backs rival HD DVD.
Swanni
Soon after the announcement, GCI Group, a Los Angeles-based public relations firm, began calling reporters (including this one) to tell them that a Hollywood news blog was reporting that HD DVD supporters gave Paramount $100 million in "promotional considerations" to dump Blu-ray.
http://www.tvpredictions.com/bluraypay082007.htm