Parks Associates Blog

Monday, August 27, 2007

Will Warner Follow Paramount's HD DVD Strategy

Six months ago, it was rumored that Universal Pictures would be forgo their HD DVD strategy and support the Blu-ray format. This would have left no major Hollywood studio supporting the HD DVD format exclusively. It is amazing how things can change in six months. Last week, Paramount and Dreamworks shocked the industry by announcing to support HD DVD exclusively. This left only Warner Home Video as the only studio that backs both HD DVD and Blu-ray. With Warner's HD cheif abruptly leaving at the end of September, rumors are now swirling that the company will also make the move to HD DVD.

Even though Warner denies a change in strategy, it signifies a dramatic comback by the HD DVD camp. For most of 2007, retail wins and dominance in movie sales have positioned Blu-ray as the front runner. While these HD DVD announcements do not overtake the Blu-ray format, it definitely puts them back in the game. More importantly, it will delay the format war indefinitely.

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