Falling DVD sales are not being compensated for by rising
Blu-ray sales. Blu-ray player prices are thought to be too high.
They reportedly generated $25 billion for movie studios in 2006, but slumped to $23.1 billion last year. Citigroup analyst Jason Bazinet thinks they will fall further to $21.4 billion this year.
Blu-ray movie sales are accelerating but nowhere near enough to replenish coffers depleted by the fading DVD. Blu-ray player prices have been fingered as being partly responsible.
Another inhibiting factor is that DVD picture quality is thought to be good enough. Consumers need a very high-definition TV to see a significant increase in quality from
Blu-ray compared to DVD. If they have an entry-level or mid-range HD-TV then the discernible quality improvement, much less than that from VHS tape to DVD, will not impress them at all.