I would say it’s doing Ok. the problem as alluded to above is the price premium, especially for new releases.
the problem all discs have is that people are buying and even renting less (Blockbuster just closed up shop in Canada). The big rush - people buying movies they remember and love - seems to have died. Now the trick is to sell new releases. A side market was selling old TV shows, but even this market is becoming saturated. Not that many people want to buy season 3 of Columbo or Bonanza.
The main problem is streaming. Netflix is so much faster and usually cheaper; and you find what you want right there, instead of going store to store and digging in bargain bins or paying silly prices. Plus, people are not seeing great value in owning a copy. Music, fine, you listen to over and over. Audiovisual gets tired much faster. A song lasts 3 minutes, a movie takes 2 hours out of your life. how many movies have you watched 10 times? How many hit songs have you NOT heard 10 times?
DVD/BR Discs have pretty much morphed into a top-40 market and a bargain bin market.
All the problems DVDs have, Blu-Ray has and costs more.
The major value of BluRay is quality of picture. I own, for example, Avatar in BluRay. However, how important is it to own or watch *Meet the Fokkers *or *Date night *in hi-def? Plus, all those old episodes of TV shows were meant for 480i originally anyway.
Plus, there’s the saturation aspect - people who are satisfied with the TV and DVD player they have, will not run out to buy bluray until the price is trivial or they buy a bigger, better TV that can use it.
My contention is that a technology captures a market, like CD or DVD did, when it is so much better than what went before that people will go “wow” and run out to buy it. CD’s beat the heck out of vynil and tapes for sound quality and manageability (eventually, even for car stereo). DVD beat the heck out of tapes for watching pre-recorded material.
Blu-Ray? Not that great a jump up on DVD, especially when DVD upconverting technology is included. Certainly no better in convenience of acquiring or playing the material - where streaming wins.
I tend to buy really good material that must be seen high quality, usually on BluRay. When I rent something, I tend to rent DVD since I can easily rip that disc if (as happens) I don’t get to finish watching it before it is due back. Either Netflix selection is crap in Canada, or they don’t let you browse their selection properly, but I don’t see anything ther that is worth $8/month.