It turns out, according to a report in the New York Times, that the decision was made not only because HD DVD is "the affordable high quality choice for consumers" and a better standard, according to the studio, but because Paramount was paid $150 million in cash and promotional guarantees.
On Tuesday, the Times reported that, according to two unnamed Viacom executives, Paramount and DreamWorks Animation, which is part of the Paramount family, will "receive about $150 million in financial incentives for their commitment to HD DVD." The Times said the promotional guarantees will include, as an example, the use of Paramount's Shrek the Third in an HD DVD marketing campaign.
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