Jeffrey Katzenberg had some sobering news for everyone embroiled in the format war.

In a story from Variety, the DreamWorks Animation CEO was recently at a Bank of America conference in New York where he responded to a question about whether HD-DVD or Blu-ray would win the format war.

"Blu-Ray and HD DVD are a niche business. They're not going to become the next platform," Katzenberg stated. "I think for the general consumer, there is not a big enough delta between the standard DVD in terms of where it is today and the next generation."

Paramount, who distributes DreamWorks titles, "does release movies in both Blu-ray and HD DVD," but "it hasn't put out any of the toon studio's pics in either next-gen format."

Like George Lucas before him, the CEO sees the ultimate destination being digital distribution, "telling those present that 'the promise is staggering.'" However don't expect that promise to reveal itself any time soon.

"The incremental income to the movie industry in the next 18-24 months (from digital delivery) is negligible," he said.