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In a move that could signify the death of HD-DVD and the end of the home entertainment format war, Paramount is getting ready to stop supporting HD-DVD following Warner Brothers recent support of Sonys Blu-ray technology. In the summer of 2007, Dreamworks Animation, maker of the Shrek films, and Paramount both came out in support of HD-DVD by joining General Electrics Universal Studios as the primary supporters of the Toshiba format. However, Viacom-owned Paramount has a clause in its contract with the HD-DVD camp that enables it to switch sides if Warner supported Blu-ray. Paramount is set to have a good year in 2008 with the release of many blockbusters, including the most recent installment in the Indiana Jones franchise. Paramount joining the Blu-ray camp would render HD-DVD to probably suffer the same demise as Sonys now-obsolete Betamax video technology, which lost out to VHS in a similar format war in the 1980s. Supporters of the Sony format now include Walt Disney, 20th Century Fox, and Metro-Goldywn-Mayer, as well as Warner now that it has backed Blu-ray. The move by Warner provides Blu-ray with approximately 70 percent of Hollywoods output, though the formats control of film content will increase further when Paramount joins the group. It is not clear if DreamWorks Animation has the same escape clause in its contract with the HD-DVD camp, but Paramount and DreamWorks have a tight relationship as Paramount distributes DreamWorks Animation films and the two companies also signed their HD-DVD contracts at the same time. Universal has declined to comment on its next-generation DVD plans after the Warner decision. The chief executive of Sony, Sir Howard Stringer, stated that a lot of work remains for Sony to achieve wide acceptance of Blu-ray among American customers.
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