Paramount is looking to ease the pressure of DVD distribution and ask its rivals to help with running its home-entertainment business.
VideoBusiness.com is reporting that the film distributor is currently talking with the likes of Fox and Sony about merging its home-ents division into their businesses.
The story comes from an article in the Financial Times, with the newspaper believing that even if the merger takes place, the two companies will act as separate entities, and Paramount's name and logo will still be present on DVDs and Blu-rays sold.
Recent Paramount films include Transformers: Revenge Of The Fallen and Star Trek.
The merger is being seen as a cost-cutting measure. Hollywood has taken a fair whack in the recession, with DVD sales down around 20 per cent and Blu-ray sales not exactly being on fire.
Couple this with the big budgets of Paramount's latest endeavours, and it's plain to see why some of the big companies are struggling to find profit in bringing movies to the home.