Like Leonardo DiCaprio running to the doomed Titanic, Paramount has gone HD DVD exclusive. They cite HD DVD’s lower cost and market ready technology, both reasonable criticisms of the Blu-Ray format, if it weren’t for the fact that Blu-Ray players out sell HD DVD players 2 to 1 and Blu-Rays sells as many discs. Blockbuster and BJ’s Wholesale are Blu-Ray exclusive while Target only stocks Blu-Ray standalone players (Target continues to sell HD DVD discs).

The worst part of this, as many commentators have recognized, is now the format war will continue longer (Paramount is committed to HD DVD for 18 months).

Personally I only own a Blu-Ray player (in my PS3) though I have yet to buy any Blu-Ray discs and refuse to spend extra money on the 360 HD DVD attachment. Even with a Blu-Ray player I am hesitant to buy discs at the premium prices. It’s more cost effective to pay for premium movie channels and on demand.

Movie companies are forgetting they aren’t just competing with two HD formats for consumer money and attention. I can continue buying regular DVDs or rent from Netflix. On Demand offers a growing list with a developing HD niche. And, of course, there’s always piracy.

Now that’s the question in front of movie companies. This HD format war can continue because DVDs still sell enough to make everyone tons of money. But eventually HDTVs will spread and consumers will demand a format winner. If the movie companies haven’t settled down with one format or the other, consumers will find alternatives. And not all of those choices will make movie companies happy.