Sony has suffered a big setback in its bid to set the standard for next-generation DVDs after four Hollywood studios announced they would back a rival technology advocated by Toshiba.

The stakes are high for Sony, which is determined not to repeat its setback in the battle to set the standard for video cassette recorders decades ago, when its Betamax was defeated by JVC's VHS format even though many agreed its technology was superior.

Sony lost the last format war, when its DVD technology was snubbed by Japanese equipment manufacturers, allowing Toshiba's technology to become the industry standard.

Concerns that history could repeat itself emerged yesterday as Paramount Pictures, Universal Pictures, New Line Cinemas and Warner Brothers announced support for the high-definition DVD (HD-DVD) format promoted by Toshiba and NEC.

Universal said it would release titles on Toshiba's HD-DVD format during the 2005 holiday season. Paramount said it would bring out content on HD-DVD in 2006. The others are also expected to release titles in the format.

The studios' support deals a a blow to a Sony, which is backing next generation Blu-ray Disc technology. The studios have said they would prefer a single next-generation DVD format. One Hollywood executive yesterday indicated that, by supporting Toshiba's HD-DVD first, the movie industry was sending a clear signal which technology it preferred.

Next-generation DVDs are capable of recording a movie in high-definition format and are expected to replace current technology from 2006, after the spread of high-definition digital broadcasts.

The new discs contain anti-piracy technologies that make them harder to copy than current DVDs. Protecting DVD sales is critical for the studios, which generate more revenue from DVDs than at the box office.

The four studios account for 45 per cent of packaged DVD content, according to DVD Exclusive, a unit of Variety magazine.

Losing this format war would raise questions about Sony's strategy of seeking synergies between hardware and software. Sony has said it has sought to build its Hollywood presence partly to win such format wars. But while the Blu-ray Disc Association includes many PC makers and most of the world's leading consumer electronics manufacturers, it has won the clear support only of Sony Pictures Entertainment among Hollywood studios.

The main advantage of Blu-ray Disc is its ability to store more data than HD-DVD. But, for Hollywood, it is cheaper to convert DVD production lines to making the HD-DVD discs.