Is Paramount about to jump from HD DVD?

Here at CES, the show is buzzing with the news—based on an article in yesterday's Financial Times—that Paramount and DreamWorks Animation are about to drop their support of HD DVD and instead back Blu-ray.

However, in a later report in Bloomberg news, the company denied it's poised to make the move, which would likely end the stalemate between the two high-def formats and make Blu-ray the winner.

According to the Financial Times' piece, there is a clause in Paramount's deal with the HD DVD group that would allow it to jump ship should Warner Bros. decide to back Blu-ray exclusively. Of course, that's exactly what happened days before the show.

It's not yet clear whether the news is simply a rumor or a harbinger of things to come. We'll be tracking this story as it develops.

—James K. Willcox