As we reported yesterday, Paramount and DreamWorks Animation have decided release their titles exclusively on HD DVD. While both studios claimed that the format's lower costs made it the better choice for consumers, the true motivator appears to be a "promotional considerations" paid by HD DVD backers. According to a blog post at Deadline Hollywood Daily, Paramount and DreamWorks Animation received a total of $150 million to drop support for Blu-ray.
I've learned there will be two new developments announced later this week today in the ongoing Blu-ray vs HD-DVD format war: separate HD-DVD deals with Paramount and DreamWorks Animation that involve major millions of dollars. I've got a confidential report from Pali Research managing director Richard S. Greenfield, a media analyst for entertainment and cable, that discussed the deals (see below), spinning them as "the format war is now set to intensify". But sources have given me updated details which show the HD-DVD side is paying through the nose -- I'm told $50 million to Paramount, and $100 million to DreamWorks Animation -- to try to show the strength of what we all know is a dying format.
If you'd like to read more, the entire blog post can be found here. Also, feel free to join the ongoing discussion in our forum.