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There are reports that the decision was taken because of $150 million in cash incentives and promotional deals, but Paramount claims the decision came after extensive research, and was influenced by HD DVD's lower cost to consumers.

The Paramount and DreamWorks deal does lack long-term commitment, though - it is limited to 18 months, and excludes the guaranteed high sales figures of Steven Spielberg titles.

Blockbuster and Walt Disney both recently pledged their allegiance to Blu-ray, joining companies such as Apple, Samsung and the format's creator, Sony. The HD DVD camp, meanwhile, counts Toshiba, NEC and Sanyo amongst its supporters.

The struggle doesn't end at home cinema either. Sony's Playstation 3 obviously uses Blu-ray, whilst Microsoft's XBox 360 supports HD DVD.

Movie companies may be favouring Blu-ray because it offers greater anti-piracy protection, which is a big issue for the entertainment industry. This adoption is driving consumer sales, because of the wider availability of well-known movies. However, HD DVD players are more affordable, costing £100 less on average than similar Blu-ray models.