TOKYO, Jan 8 (Reuters) - Paramount studios is poised to drop its support of the high-definition DVD (HD DVD) format after Warner Bros studio said it would back the competing Blu-ray format, the Financial Times reported on Tuesday.
The loss of support from Paramount, which is owned by Viacom Inc VIAb.N, would likely deal the final blow to the HD DVD format backed by Toshiba Corp (6502.T) and put an end to the format war, the newspaper said on its Web site.
Time Warner Inc’s (TWX.N) Warner Bros studio on Friday said it would exclusively release high-definition DVDs in Sony Corp’s (6758.T) Blu-ray format, marking a major setback to the HD DVD camp. [ID:nN04446354]
Blu-ray discs outsold HD DVD by nearly two-to-one in the United States last year, but HD DVD had secured major allies in August when Paramount Pictures and DreamWorks Animation SKG Inc said they would go exclusively with HD DVD.
But Paramount is understood to have a clause in its contract with the HD DVD camp that would allow it to change sides if Warner Bros backed Blu-ray, the Financial Times said, citing people familiar with the situation. (Reporting by Nathan Layne)