I'm wondering if you even read the article you posted the URL to:

Quote from http://www.reuters.com/article/idUSTRE5BU0HS20100105?type=entertainmentNews"

Quote:
Film box office overtakes 2009 DVD, Blu-ray sales

Overall DVD and Blu-ray sales including films, television shows, concert videos and other content declined about 10 percent to $13 billion in 2009, Adams Media said.

The movie disc business peaked in 2004 with U.S. sales of $12.1 billion. With the film industry increasingly relying on the small but growing sectors of on-demand television and online distribution, movie disc sales are not expected to rebound to those peak figures from six years ago.

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Maybe you should read this...

http://finance.yahoo.com/family-home/article/108504/10-things-not-to-buy-in-2010

Heck, there's even this...

http://www.nytimes.com/2010/01/03/movies/homevideo/03kehr.html?pagewanted=2&emc=eta1

It is possible to pull up a lot of articles which are negative towards Blu-ray or disc based media. One journalists interpretation of events that are happing right now is not fact. What is fact is sales and Blu-ray in the last year has jumped from 5% to 13% over a 100% increase in last years revenue.

Downloads and on demand services will in time become the norm but for that to happen it requires the infrastructure to be in place to deliver media in that fashion.

That is at least 10 years away before it can become as competitive as physical media. As for studios not releasing back catalogue content this is because the majority of there most popular content has reached saturation point on one format.

Cause where right now in the middle of a fall and rise of a new format studios are less reluctant then they where in 2004 to invest the same amount of money in bringing something out of the vault. But as the transition to Blu-ray happens this process will start to speed up again.

Disney being a great example of this as many of there titles are now heading back to the vault and will never see the light of day on DVD again.

Quoting FilmAlba:

Quote:
It is possible to pull up a lot of articles which are negative towards Blu-ray or disc based media.

Of course, you did so yourself.  The irony is that you tried to spin that into some sort of success story for Blu-ray.

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Quoting mdnitoil:

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That's one way of looking at it.  The other way is to understand that total disc sales are down a whopping 10%.  That's SD and BR combined.  Now, people are still watching the same amount of stuff they were a year ago, they're just not buying as many discs.  Those alternate delivery services that you believe are ten years away just swiped 10% of the disc market.  You think this is somehow going to magically get better next year when folks buy more BR players?  Um...no.  They'll buy more BR discs as compared to SD, but the total number of disc sales will still decline.  The only thing that's happening here is that BR is cannibalizing disc sales.  There's no growth here.

Feel free to get all worked up about the rosey future of BR, but if you happen to run across an SD version of a favorite grindhouse film that's out of print, buy it.  It's the only way you'll be getting it on disc.

I would not call it cannibalizing but more like a conversion. Every one likes to attribute the fall to new delivery system but i see more or less the now more ppl year on year converting to Blu-ray than seeking something non physical.

You can put your end of the world sign down and don't panic for now i think.

Personally if I can't have a physical copy of something I don't want it!

Have the enjoyment is the feel of that plastic box in my hands!!

Quoting mdnitoil:

Quote:
Quoting FilmAlba:

Quote:
I would not call it cannibalizing but more like a conversion. Every one likes to attribute the fall to new delivery system but i see more or less the now more ppl year on year converting to Blu-ray than seeking something non physical.

You can put your end of the world sign down and don't panic for now i think.

Conversion implies that folks are replacing previously purchased content with BR versions.  There's a little of that happening, but not nearly as much as will be needed to maintain the overall disc sales.  Look, one million total people are buying whatever latest release came out last week.  Now if that percentage breakdown is 80% SD and 20% BD, or any other combination, the total is still unchanged.  Next year, 900,000 people will be buying whatever and it may be 60% SD and 40% BD.  Yippee, BD sales have doubled, but the ship is still sinking.  And while disc sales continue to decrease, the overall spectrum of what will eventually come out on BR will continue to shrink.

It's not an end of the world sign, it's simply an understanding of how the market is trending.  Those of us who do understand can make informed purchasing decisions regarding low volume SD titles that are rapidly going out of print.  Those who choose not to understand can wait in anticipation of the eventual BR version, only to be pissed in a few years paying outrageous OOP prices for that SD version.

Blu-ray and physical media will sink but not as fast your predicting. The reason why the fall in physical sales is more dramatic is because DVD has more content on it and because the formats been on top since summer 2003 almost 7 years a lot of the content on the format simply does not have the same selling power any more.

Blu-ray does not have the same vast catalogue as DVD to counter but what is on Blu-ray has many  the previous buyers re buying.

The transition to a dominate non physical based media has got still a long way to go. As rental product it is maturing but the interface and systems needed for it to be something to buy on a mass scale are years.

It needs to be so user friendly and done directly through your TV plus every studio must have a common consensus.

Do you honestly see a company like Disney are going to be so agreeing to such a sharp change or Sony.