Both said they will release their next-generation DVD titles exclusively on HD DVD ahead of what they said could be the biggest holiday season ever for DVDs.
Paramount used to flog films in Blu-Ray but decided to stick to HD DVD after deciding it offered better quality, lower-priced players and lower manufacturing costs.
Kelley Avery, president of Paramount Home Entertainment, told the Washington Post that HD DVD players were much more affordable.
Most of the major Hollywood studios are selling Blu-Ray titles, which have outsold HD DVD by 2-to-1 in the United States. But that could mostly be to do with the introduction of the PS3 gaming console which has done well in establishing the Blu-ray format.
However once the limited PS3 market has been factored into the picture, it is still fairly neck and neck.
Some HD DVD supporters hope to broaden their appeal to consumers based on cost. The lowest-priced, stand-alone HD DVD player sells for $299, compared with $499 for the lowest-cost Blu-Ray player.
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