Warner Bros. sister company New Line who's films include The Lord of the Rings Triology, has confirmed it will shift its allegiance to Blu-ray rather than HD DVD following Warner Bros. announcement that it was ditching the HD DVD format later this year.

The news, the second studio is as many days will be yet another blow to Toshiba and the HD DVD Group.

Following the announcement, the HD DVD group as announced that it is cancelling its Keynote speech at CES on Sunday.

New Line is expected to follow Warner Home Video by only continuing to release its titles in standard DVD format and Blu-ray.

Warner Bros. who announced the news on Friday blamed a "two-format landscape" for causing "consumer confusion"