The real competition for BD, for the near-term, remains DVD, especially upscaled DVD, which comes boxed with nearly every HT system sold and mega-discounted DVD players and titles.
BD will need to continue BOGO and other disc-selling initiatives to get mindshare away from DVD.
By then, maybe HD downloads will be on the serious radar (not that anything stops a BD player from being download-to-rent either…)
With HD DVD dead, Blu-rays next threat is digital downloads
Toshiba has finally bowed to the inevitable, announcing its intentions to stop the manufacture and development of HD DVD players. Citing “recent major changes in the market,” the company concluded after a “thorough” review that the torrent of support for Blu-ray was too much to overcome. Even with HD DVD gone, however, Blu-ray still faces challenges on other fronts; more on that below.

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