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Paramount Hedges Bets on DVD Studio is First to Say It Will Make Films in Both New Formats

Posted on: Tuesday, 4 October 2005, 12:01 CDT

By Ken Belson

Recognizing that a split over the format of the next generation of digital videodiscs is deepening, Paramount Pictures has said that it will make DVD movies in the Blu-ray format as well as in the HD- DVD standard.

Paramount is the first major studio to say publicly that it will produce DVDs in each of the two formats, which both promise high- definition pictures, enhanced audio and five or more times the storage space on a disc. Until now, the big Hollywood studios have supported one format or the other.

However, the chance for an agreement to use one format dimmed earlier in the year when negotiations stalled between Toshiba, which makes the HD-DVD standard, and Sony, Panasonic and others in the Blu- ray group. Since then, companies on both sides have promised to start selling DVD players that use their respective formats as early as this winter.

The studios, retailers and others had hoped to avoid a showdown between the competing formats because it is costly to make and sell two sets of discs.

Other studios may follow in Paramount's path. In addition to Paramount, Warner Brothers and Universal have backed the HD-DVD format, while Sony Pictures, Disney, 20th Century Fox and Lion's Gate have come out in favor of Blu-ray.

The plan to produce machines and movies for both formats suggests that there may not be a clear resolution to the battle soon, according to industry executives.

The president of Paramount Pictures, Thomas Lesinski, said in a statement on Sunday that Sony's planned inclusion of Blu-ray technology in its PlayStation 3 video game console when it is released next spring was an important factor in his studio's decision to adopt the Blu-ray format. With that technology inside, the game machine will effectively double as a Blu-ray DVD player.

Lesinski called this a "key advantage" for the Blu-ray group.

He said that the studio had made its decision to produce Blu-ray DVDs on the basis of "new data on cost, manufacturability and copy protection solutions."

Paramount, Warner and Universal, as well as Microsoft, Intel and disc manufacturers, have said the HD-DVD discs can be produced more cheaply and more reliably than Blu-ray discs. Disc manufacturers have also said privately that the HD-DVD format discs are far closer to being ready for mass production than Blu-ray discs.

In response to Paramount's announcement, Toshiba said it remained committed to bringing HD-DVD to market.

In a statement, the company said the Blu-ray group "still needs to answer the tough questions about how they plan to deliver on their promises." This includes whether it will allow all manufacturers to make Blu-ray players and whether the Blu-ray group will set a date for delivering their high-capacity discs.

Paramount did not say how many movies it initially planned to release in the Blu-ray format, or which titles.

Source: International Herald Tribune

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