Universal Will Not Renew HD DVD Pact

Universal Home Entertainment will not renew its exclusivity pact with HD DVD, Variety has reported.

This latest bout of bad news for HD DVD follows Warner's announced decision to start releasing on exclusively on Blu-ray in May, a change from its previous dual-format stance.

In addition, says the Variety report, Paramount has an "escape clause" that would release it from its own 18-month exclusivity agreement with HD DVD.

However, both studios have so far stopped short of a formal declaration that they would abandon HD DVD. A Universal executive called suggestions that it would abandon HD DVD unsubstantiated rumors. Paramount, during this week's just-concluded Consumer Electronics Show in Las Vegas, issued a similar statement rebutting a Financial Times story.

At CES, the HD DVD Promotional Group canceled its press event--not exactly a healthy sign. Toshiba's press event included neither a fourth generation of HD DVD hardware or a straightforward concession speech. For the time being, HD DVD's future is still up in the air.

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