Wall Street Journal - Universal quiet, Paramount staying

[LynxFX]

The outcome of the high-definition DVD battle remained uncertain until the final days before the annual Consumer Electronics Show, kicking off now in Las Vegas, where both sides like to make big announcements concerning their formats. Toshiba was still working hard last week to court Warner and News Corp.'s Twentieth Century Fox to use HD DVD exclusively. Warner was considering it, people familiar with the matter say, but when it realized Fox wouldn't leave Blu-ray, decided to go with Blu-ray exclusively as well, to bring an end to the format war. A Blu-ray win is important for Sony Chief Executive Howard Stringer, who made it part of his mission to beef up the content and software offerings in a notoriously hardware-centric company when he took the helm 2½ years ago. As Sony nears completion of a three-year turnaround plan, Mr. Stringer also told reporters in Tokyo last month that driving innovation would be his next goal.

Over the last couple of years, Mr. Stringer, a former movie executive, was involved in many discussions with studios Sony was courting, people familiar with the matter say.

Toshiba, which conceded Friday that the Warner Bros. move is a "setback," is expected to continue making its case for HD DVD, at least for awhile. Paramount Pictures, a unit of Viacom Inc., plans to continue to support the HD DVD format, a spokeswoman said yesterday. The other remaining Hollywood supporter, General Electric Co.'s Universal Pictures, declined to comment.

Looks like Paramount is stuck with their deal until something else comes up to trigger an out clause. Univeral appears to be the one that is about to make that happen. Hopefully we will hear from them very soon.