I've said for years, the reason bluray hasn't been adopted as well as you'd think hinges on a single issue: DVD Upconversion.

DVD Upconversion took our entire current movie collection, and made it look pretty damn nice on our new, huge TVs. Not only that, but it was early on a standard feature in Bluray players - meaning that people never had to go out and re buy the films they already owned. In some cases, this is fine, as DNR and Edge Enhancement have really screwed up some hi def releases. But without a huge back catalog to replace existing films with, Hollywood has been pushed to put out as many big, flashy films as possible to push the benefits of Blu. They even put out 3D Bluray to try and lure more people in - which has been so expensive, it's a joke.

If they would quit selling standalone DVDs completely and switch to ComboPacks and Bluray releases only, we would see a jump in sales and even more support. But for some reason they haven't done it yet... and the support for DVD, Blu, AND Digital Copies (of which there are like 5 or 6 different kinds) has spread everyone out across the board, as opposed to certain level of uniformity from one home to another that we saw with VHS and DVD.