I said all along when both HDDVD and BLU RAY were first starting that niether would last more than 4 years. the trouble is people dont want to replace their entire library of 2-300 DVDs all over again.
I download HD films for £7.99/month and it's unlimited. I couldnt care less if there is a slight difference in quality because it still kicks the arse off my DVD's picture.
Downloads of films in HD have gained more ground this year than BD. Heres an incerpt from earlier in the year:
http://www.reghardware.co.uk/2008/01/18/jobs_on_bluray_hddvd/
The trouble is Sony had to put downloads available on PS3 as well. And it is so much easier to start a download and watch it 5 mins later than go to town to either buy or rent. Eventually I also see Blockbuster and the like closing down shops.
This following link is the best article I have seen recently and goes to show that even the movie industry is thinking downloads.
http://tech.blorge.com/Structure:%20/2008/06/02/battle-between-physical-media-downloads-blu-ray-dead-man-walking/
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