Warner Bros. recent announcement that it is shunning the HD DVD format in favor of Blu-ray may have opened a door for Paramount to break its HD DVD-exclusive agreement and support Blu-ray as well. Sources close to the matter claim that Paramount’s deal includes a clause that says the studio can back out of the HD DVD market if Warner does the same, according to the Finacial Times.

The possibility of losing Paramount to Blu-ray spells trouble for Toshiba and its remaining HD DVD supporters, but the situation could get even worse for the group. Dreamworks Animation, which is closely tied with Paramount, may have a similar escape clause in its 18-month deal to support HD DVD exclusively. If so, the animation studio may follow suit and jump ship for Blu-ray, too.

While Warner’s move to drop HD DVD support is considered by many to be one of the final nails in the format’s coffin, a switch by Paramount would likely signal the beginning of HD DVD’s burial. Universal Studios, however, is still supporting HD DVD, and could help to keep the format alive unless it announces a switch to exclusive Blu-ray support as well.

Sony CEO Sir Howard Stringer noted that despite Blu-ray’s move closer to victory in the HD format wars, there is still work to be done to grow consumer interest. He plans to keep an open dialog with HD DVD partners, adding "We are not going to push people around. We’ll talk to anyone... we have a lot of work to do to grow the market. We’ll be systematic and open to dialogue at all times."