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IMO, their problem is simply a function of price compared to alternatives. The jump between the two isn't enough to justify the price difference to the vast majority of the market.
I just watched a DVD upconverted to 1080p, and a BR at 1080p. I have to say I don't notice much of a difference on a 52" tv. My AVR is only 8 months old, and I don't have a dolby HD decoder in it, so that advantage is a niche advantage. It's just too new of a format.
Figure in the possibility that a LOT of home movie buyers converted to Netflix/Blockbuster online, and you have a significant problem. For the price of 1 BR, you can get 2 months worth of rentals for movies you probably won't watch more than a 1 or 2 times.
Once you factor in the lack of disposable income right now, BR is doomed at the current business model.
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"I know the pieces fit, cause I watched them fall away."
"Cold silence has
A tendancy to
Atrophy any
Sense of compassion."
MJK
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