DreamWorks, the movie studio behind Sweeny Todd, the new Indiana Jones film and Transformers, surprised observers yesterday by announcing that it will most likely continue to release films on HD DVD.

In spite of the demise of the format, HD DVD owners will still get the chance to purchase new high-definition releases for their lame-duck players because of an existing agreement.


Cash in hand

DreamWorks intends to honour the deal it agreed last August to release its films only on HD DVD, even though its sister studio, Paramount, has already switched sides to join the Blu-ray camp.

Although the decision to persevere with HD DVD in the short term may appear ludicrous, it actually makes some financial sense. Both Blu-ray and HD DVD markets are still so small, the DreamWorks share of the $150 million (£70 million) promised by Toshiba in return for support is likely to be far more than it could take in sales of high-def movies anyway.