The move would be a result of Warner's switch to Blu-ray, using a "get out" clause in Paramount's promotional agreement with the HD DVD camp.

Paramount & DreamWorks Animation, came out in support of HD-DVD in August last year.

However, Paramount (owned by Viacom) is understood to have a clause in its contract with the HD-DVD camp that would allow it to switch sides in the event of Warner backing
Blu-ray, according to people familiar with the situation, the Financial Times reports.

It is unclear whether DreamWorks Animation has the same get-out clause in its contract with the HD-DVD camp. However, Paramount and DreamWorks have a close relationship, with Paramount distributing DreamWorks Animation films.