Just as Blu-ray appeared to have taken the lead in the battle of Hi-Def supremacy (with the Blockbuster exclusivity deal), Viacom, parent company to Paramount, announced today that they have signed an exclusive deal (for a rumored $150 million) with the HD DVD group. This really starts to level the playing field amongst studio support - with Universal and Paramount (which includes Dreamworks) supporting HD DVD and Sony, Fox, MGM, Disney and Lionsgate supporting Blu-ray. Prior to this announcement, Paramount sat of the fence along with Warner Bros. as format neutral studios.

This Paramount deal takes effect on August 28th with the release of Blades of Glory, and will include the upcoming releases of mega-hits such as Transformers and Shrek 3.

Here is the full press release via Viacom.