“Just when it seemed that the Blu-ray Disc had gained the upper hand in the high-definition video disc battle, HD DVD has recruited two studios, Paramount and DreamWorks,” Mike Snider reports for USA Today.

“The availability of lower-cost HD DVD players led to the studios pulling their support from Blu-ray. Toshiba currently has players in stores for less than $300,” Snider reports.

“Rival Blu-ray, which counts studios Sony, Disney and Fox as supporters, had been gaining market momentum in recent months. Blockbuster and Target announced they’ll carry Blu-ray exclusively, and Blu-ray discs have been outselling HD DVDs about 2-to-1 this year. However, HD DVD releases (81) have outpaced Blu-ray’s (55) in the past three months, according to DVD Release Report,” Snider reports.

Full article here.

The deal covers all of Paramount’s properties, but does not include films directed by Steven Spielberg as his films are not exclusive to either format, according to the Viacom (parent of Paramount) press release.

Full press release here.

[Thanks to MacDailyNews Reader “JadisOne” for the heads up.]