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HD-DVD gets exclusive support from Paramount Pictures and DreamWorks Animation SKG – How Much It Cost?

Although sales statistics indicate that Blu-ray is noticeably ahead of HD-DVD in the American market, two large video product suppliers at once announced their decision to release their products only on HD-DVD media.

We are talking about Paramount Pictures and DreamWorks Animation SKG. Interestingly, Paramount previously released discs in both formats, but now the choice is made in favor of HD-DVD. To justify their decision, manufacturers cite the lower cost of HD-DVD compared to Blu-ray discs and more affordable prices for HD-DVD playback equipment. Today, the cheapest standalone HD DVD player costs $ 299, while the cheapest Blu-Ray player costs $ 499 (US market prices quoted).

HD-DVD proponent Toshiba and HD DVD Promotion Group endorse the selection made by Paramount and DreamWorks Animation.

At the same time, one of the sources explains in its own way the reasons that influenced the choice of the format. According to unverified reports, Paramount and DreamWorks Animation received substantial sums from HD DVD Promotion Group in the form of “advertising expenses compensation” – 50 and 150 million dollars, respectively.

If this is the case, we can conclude that the confrontation between formats takes forms that are on the verge of healthy competition. Recall that the question of the use of unacceptable promotion methods by supporters of Blu-ray is currently being considered by the European Commission.

Sources: HD DVD Promotion Group, Deadline Hollywood Daily, Reuters

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