Paramount in DVD tie-up talks with rivals -source

* Talks in early stages-source

* Aim to combine DVD production, distribution-source

LOS ANGELES, June 30 (Reuters) - Viacom's (VIAb.N) Paramount Pictures studio is in early discussions with several rival studios, including Sony (6758.T) and News Corp's (NWSA.O) Fox, to save on costs by combining DVD manufacturing and distribution, a source said on Tuesday.

Paramount, which like Hollywood's other studios is trying to slash expenses and ride through an industry downturn, had not worked out the precise form that such a tie-up will eventually take, the source, who was briefed on the situation, told Reuters on condition of anonymity. (Reporting by Gina Keating and Edwin Chan; Editing by Steve Orlofsky)