The Financial Times is reporting that Paramount is poised to dump HD DVD following Warner's recent announcement of a move firmly into the Blu-ray camp.

Quoting "people familiar with the situation" the FT suggests that Paramount, and perhaps DreamWorks too, are about to renounce their HD DVD-only release status.

Paramount and DreamWorks have only been in the HD DVD camp since the late summmer - a period of approximately 4 months - since the studios allegedly signed a multi-million dollar deal in their favour to back Toshiba's next-gen format.

The rumour suggests that Paramount made sure of a "get-out" clause should Warner, or Universal (the only other major studio releasing films on HD DVD) change sides then they would be able to u-turn on the agreement.