I remember one of the big issues with DVD, when it came out, was that you could not record on it. People loved their VCR's because of the ability to record. The culture of actually buying movies was there with VHS but it was DVD that made buying movies so much more attractive than renting them, once the price of movies came down to such a low level.
So ironically we have BD as a physical HD format not only competing against it's predecessor, DVD for the movie buying market, but we have BD starting to compete against download/streaming on demand HD services more in the rental space.
I posted in another thread that the world is going HD. It's just the way it is. See here at bottom of pg 6 or otherwise this will be a very long post :)
http://www.vgchartz.com/forum/thread.php?id=51398&page=6
Read that, and the point is that HD is basically inevitable. So eventually it's really going to be a debate of BD (Physical HD) vs. download/streaming.
I'm open to debate on that one :)
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