Paramount Pictures, DreamWorks Animation Declare HD-DVD Format Over Blu-Ray

In a a move that further perplexes the skirmish between the two technologies, Paramount Pictures and DreamWorks Animation on Monday declared that they will release their DVDs exclusively on HD-DVD rather than Blu-ray.

Home Media Research says Blu-Ray outsold HD-DVD by two to one in the U.S. in the first half of 2007.

The research firm also said last week that approximately 3.7 million high-definition discs have been sold including 2.2 million Blu-ray discs and 1.5 million in HD-DVD through the end of July 2007.

Paramount says the HD-DVD format offers better quality, lower manufacturing costs and cheaper players for consumers. HD-DVD and Blu-ray are in a cutthroat battle to emerge as the victor of the next generation of DVDs.

This announcement doesn’t include movies directed by Steven Spielberg for DreamWorks, which is a unit of Paramount. Paramount says Spielberg’s films aren’t currently exclusive to either format.

Toshiba developed HD-DVD, which is backed by Microsoft. The HD-DVD format is supported by Warner Bros., The Weinstein Co., New Line Cinema, Universal Studios and HBO.

On the other front, Blu-ray discs use Sony technology. Blu-ray is supported by most of the major movie studios in the U.S. Blu-ray players currently cost between $500 and $800 whereas HD-DVD players run for between $200 and $400.

Many people believe HD-DVD is inferior and will become obsolete. Both formats hit the market in 2006.