It looks like New Line isn't so much like their sister company Warner Brothers after all. They are releasing Hairspray on Blu-ray with PIP.
http://www.blu-ray.com/news/?id=498
Shame that WB can't do the same thing for their BD titles like Harry Potter.
New Line has announced that they will be bringing the remake of the musical 'Hairspray' to Blu-ray on November 20th. Extras will include a new musical number, the documentary "You Can't Stop the Beat", a "Hairspray Extensions" featurette, audio commentaries and deleted scenes. The Blu-ray release will also feature a "Behind the Beat" picture-in-picture experience.
Update: According to an article at Home Media Magazine, most New Line releases, including this one, will be HD exclusive to Blu-ray for a limited time due to regional coding issues with the HD DVD format (HD DVD has no regional coding).
http://www.blu-ray.com/news/?id=498
Shame that WB can't do the same thing for their BD titles like Harry Potter.